GURBAKSHRAI vs NEW INDIA ASSURANCE CO. LTD.

THE appeal is directed against the decision dated 6.12.1993 passed by the District Consumer Disputes Redressal Forum, Shahdol in Case No. 29/93.

BRIEFLY, the facts relevant for the purpose of this appeal are that the Appellant took out a policy Class ''C'' from the Respondent covering the risk of loss due to fire etc. During the period the policy was in force, a fire broke out on the night intervening 16th and 17th July, 1991. The Complainant reported the matter to the respondent which appointed a Surveyor - Shri V. Nayyar to investigate into the fire accident and to assess the loss. Thereafter, another Surveyor - Shri R.K. Puri was appointed by the respondent. The report of the Surveyor was received and ultimately the appellant received from the respondent on 11.5.1993 the amount assessed towards the loss in full and final settlement of the claim of the appellant. However, dissatisfied with the amount received by the appellant; the appellant filed a complaint before the District Forum alleging that the settlement of the claim was under duress, that certain deductions were wrongly made by the Surveyor and that the Complainant was eligible to receive damages from the respondent on account of delay in settlement of claim, along with expenses incurred in connection with the claim and interest for delayed payment. The respondent resisted the claim of the Complainant. The District Forum after appreciating the material on record held that the issues raised in the matter were such which could be properly decided in a Civil Suit. The District Forum therefore declined to exercise jurisdiction and directed the Complainant to pursue the remedy by filing a suit in a Competent Court. Aggrieved by that decision, the Appellant has filed this appeal. At the time of hearing of this appeal, the learned Counsel for the Appellant confined his appeal to the claim for interest only and stated that the other claims made by the appellant were not being pressed. In support of the claim for interest on account of delayed payment, reliance was placed upon the decision of the National Consumer Disputes Redressal Commission reported in 1993 (2) CPR 115 (NC) (M/s Ajmer Singh Cotton & General Mills v. Branch Manager, United India Insurance Company & Ors.) awarding interest as compensation to the Complainant on account of delay in payment of the amount due under a policy, though the claimant had given full and final discharge receipt of the claim. On behalf of the respondent it was contended that as the appellant has received the amount in full and final statement of the claim made by the appellant, the respondent was not liable to pay any interest charges.

In view of the decision of the National Consumer Disputes Redressal Commission reported in 1993 (2) CPR 115 (NC), the claim of the appellant for payment of the amount of the interest on account of delay in payment of the amount due under the policy deserves to be allowed. The allegation that the report of the Second Surveyor was received by the respondent by the end of December, 1991 was not denied before us. Payment under the policy should have been made by the respondent within two months thereafter but it was made on 11.5.1993. It was not contended on behalf of the respondent that the appellant alone was responsible for the delay in payment. Therefore, following the aforesaid decision of the National Consumer Disputes Redressal Commission we hold that respondent is liable to pay interest by way of compensation for the delayed payment at 18%p.a. from 1.3.1992 to 11.5.93. We accordingly order that the respondent shall pay interest to the claimant appellant at the rate of 18% p.a. from 13.1992 to 11.5.1993 on the amount of Rs. 2,11,674/- already paid by respondent to the appellant within two months from the date of the receipt of this order. In the circumstances, parties shall bear their own costs throughout. Order accordingly.