Narendra Pratap Singh vs Life Insurance Corporation of India

THIS is an appeal against the judgment and order dated 4.7.1997 passed by District Consumer Forum, Gorakhpur in Complaint Case No. 167/ 1994.

THE facts of the case stated in brief are that when the complainant was residing at Jhansi in the year 1991 he took out a policy No. 23,1608586 on 28.12.1991 for a sum of Rs. 1,00,000/-. THE premium was being paid every year in the month of December amounting to Rs. 6,350/-. THE premium of 1992 could not be deposited in time. Hence he sent a cheque of Rs. 6,589.20 on 12.5.1993 as premium of 1992 which was accepted. This included the interest also. This cheque was returned on 20.1.1994 on the ground that the premium of 1992 has not been paid in the year 1992. Hence this is being returned. Complainant sent a new cheque alongwith details for 1992 premium but no reply was sent to this letter. Thereupon the complainant on 12.5.1993 applied for transfer of insurance policy from Jhansi to Gorakhpur but no reply was sent to him. Complainant obtained an acknowledgement from the State Bank of India, Gorakhpur of the fact that the opposite party had realised the proceedings of the cheque. No receipt was issued to the complainant by the Insurance Company and neither the policy was transferred. The premium of 1993 was also not accepted by the Insurance Company.

Opposite party had in their written statement raised an objection that the District Forum, Gorakhpur had no jurisdiction to hear the complaint as policy was issued at Jhansi.

THE learned District Forum, after hearing the learned Counsel and perusing the facts on record, came to the conclusion that the complaint does not lie at Gorakhpur as no cause of action arose there. With this observation the complaint was dismissed. Aggrieved against this order the complainant has come in appeal and has challenged the correctness of the order passed by the District Forum.

WE have heard the learned Counsels for the parties. Learned Counsel for the appellant has argued that the policy was not transferred to Gorakhpur in spite of the request made by the complainant. Hence the District Forum, Gorakhpur possess the jurisdiction to try the complaint. On the other hand learned Counsel for the opposite party has argued that no part of cause of action arose at Gorakhpur and therefore Gorakhpur Consumer Forum has no jurisdiction to entertain the complaint. Learned Counsel for the opposite party has placed reliance on the case of Indian Airlines Corporation & Ors. v. Consumer Education and Research Society, Ahmedabad & Anr., II (1991) CPJ 686 (NC). In this case it was held by the National Commission that where no part of cause of action has arisen within the jurisdiction of the Forum, the complaint cannot be filed there merely because the Corporation has the branch office in the city concerned. A perusal of this ruling clearly shows that the jurisdiction lies only where the part of cause of action arose and not at a place where branch office of a Corporation exists. As regards the second contention of the learned Counsel for the complainant that an application was moved for transfer of policy at Gorakhpur and, therefore, the District Forum, Gorakhpur will have the jurisdiction to try the complaint. Learned Counsel for the opposite party has argued that the premium for the year 1992 was not paid. Hence the policy stood lapsed. Unless the policy was revised, according to rules, it could not have been transferred to Gorakhpur. This contention is correct because a lapsed policy which is not in force cannot be transferred from one place to another. It is also a running policy which could have been transferred by the opposite party to Gorakhpur at the request of the complainant. Thus in any view of the matter, the District Forum, Gorakhpur has no jurisdiction to try this complaint. The learned District Forum has rightly dismissed the complaint. ORDER The appeal is dismissed and the judgment and order of the learned District Forum are confirmed. There will be no order as to cost. Let copy of this order be made available as per rules. Appeal dismissed.