L.I.C OF INDIA vs SOHANI DEVI

Heard.

Brief facts are that husband of Respondent/Complainant, had taken a LIC policy from the Petitioner/Opposite Party for a sum of Rs.50,000/- bearing policy no.180634668 on 26.6.2004. Due to crush injury, the claim preferred by the respondent, was repudiated by the petitioner. Thereafter, respondent filed complaint before District Forum praying, that petitioner be ordered to remit the entire insurance amount of Rs.50,000/- alongwith all the benefits and dues, payable thereon alonwith interest @ 12% p.a. from 11.12.2004 upto the date of payment and also sought compensation of Rs.21,000/-.

Petitioner in its written statement, took the plea that claim was repudiated on the ground that two years before the insured proposed for the above policy, he had been suffering from crush injury with permanent partial disability for which he had taken treatment in the hospital and was

also on medical leave for 41 days form 21.3.2002 to 30.4.2002. He did not disclose these facts in his proposal form. Denying any kind of deficiency in service, it prayed for dismissal of the complaint

District Forum, vide order dated 15.3.2007 dismissed the complaint.

Being aggrieved, respondent filed First Appeal No.698 of 2007, before the State Commission, which vide its impugned order dated 25.3.08, quashed and set aside the order of District Forum. It partly allowed the appeal by ordering, that respondent is entitled to get claim amount of Rs.50,000/- with 9% p.a. interest from the date of filing of complaint till payment is made.

Now, petitioner has filed this revision.

The insured has died in the year 2004. Thus, more than 11 years have passed and this litigation is going on for last 10 years. Since, paltry amount of about Rs.50,000/- plus interest only, is involved in this case, hence we are not inclined to entertain this petition, in view of the decision of Apex Court in "Gurgaon Gramin Bank Vs. Khazani and another, IV (2012) CPJ 5 (SC), where Apex Court observed; "2. Number of litigations in our country is on the rise, for small and trivial matters, people and sometimes Central and State Governments and their instrumentalities Banks, nationalized or private, come to courts may be due to ego clash or to save the Officers'' skin. Judicial system is over-burdened, naturally causes delay in adjudication of disputes. Mediation centers opened in various parts of our country have, to some extent, eased the burden of the courts but we are still in the tunnel and the light is far away. On more than one occasion, this court has reminded the Central Government, State Governments and other instrumentalities as well as to the various banking institutions to take earnest efforts to resolve the disputes at their end. At times, some give and take attitude should be adopted or both will sink. Unless, serious questions of law of general importance arise for consideration or a question which affects large number of persons or the stakes are very high, Courts jurisdiction cannot be invoked for resolution of small and trivial matters. We are really disturbed by the manner in which those types of matters are being brought to courts even at the level of Supreme Court of India and this case falls in that category."

The Apex Court further held;

"10. The Chief Manager stated in the affidavit that no bill was raised by the counsel for the bank for conducting the matter before the National Consumer Dispute Redressal Commission. We have not been told how much money has been spent by the bank officers for their to and fro journeys to the lawyers'' office, to the District Forum, State Forum, National Commission and to the Supreme Court. For a paltry amount of Rs.15000/-,even according to the affidavit, bank has already spent a total amount of Rs.12,950/- leaving aside the time spent and other miscellaneous expenses spent by the officers of the bank for to and fro expenses etc. Further, it may be noted that the District Forum had awarded

Rs.3,000/- towards cost of litigation and compensation for the harassment caused to Smt. Khazani. Adding this amount, the cost goes up to Rs.15,950/-. Remember, the buffalo had died 10 years back, but the litigation is not over, fight is still on for Rs.15,000/-.

Learned counsel appearing for the bank, Shri Amit Grover, submitted that though the amount involved is not very high but the claim was fake and on inspection by the insurance company, no tag was found on the dead body of the buffalo and hence the insurer was not bound to make good the loss, consequently the bank had to proceed against Smt. Khazani.

We are of the view that issues raised before us are purely questions of facts examined by the three forums including the National Disputes Redressal Commission and we fail to see what is the important question of law to be decided by the Supreme Court. In our view, these types of litigation should be discouraged and message should also go, otherwise for all trivial and silly matters people will rush to this court.

Gramin Bank like the appellant should stand for the benefit of the gramins who sometimes avail of loan for buying buffaloes, to purchase agricultural implements, manure, seeds and so on. Repayment, to a large extent, depends upon the income which they get out of that. Crop failure, due to drought or natural calamities, disease to cattle or their death may cause difficulties to gramins to repay the amount. Rather than coming to their rescue, banks often drive them to litigation leading them extreme penury. Assuming that the bank is right, but once an authority like District Forum takes a view, the bank should graciously accept it rather than going in for further litigation and even to the level of Supreme Court. Driving poor gramins to various litigative forums should be strongly deprecated because they have also to spend large amounts for conducting litigation. We condemn this type of practice, unless the stake is very high or the matter affects large number of persons or affects a general policy of the Bank which has far reaching consequences.

We, in this case, find no error in the decisions taken by all fact finding authorities including the National Disputes Redressal Commission. The appeal is accordingly dismissed with cost of Rs.10,000/- to be paid by the bank to the first respondent within a period of one month. Resultantly, the Bank now has to spend altogether Rs.25,950/- for a claim of Rs.15,000/-, apart from to and fro travelling expenses of the Bank officials. Let God save the Gramins."

Above quoted observations of the Apex Court, with all force are fully applicable to the facts and circumstances of the present case.

Under these circumstances, as insured died about 11 years ago and only paltry amount is involved in this revision, hence, we are not inclined to entertain this revision. However, the question of law raised in this petition, is kept open to be decided in an appropriate case, where stakes are high.

Present revision stand disposed of accordingly.

No order as to cost.

Dasti.