RAJESH SIKARIA vs National Insurance Co. Ltd.

COMPLAINANT is the appellant who has preferred this appeal against the order dated 2.9.2003 passed in Execution Case No. 53 of 2001 by the District Forum, Patna, whereby the execution proceeding has been dropped to complete the compliance of the order of the District Consumer Forum.

THE brief fact of the case is that the appellant has filed Execution Case No. 53/2001 before the District Forum, Patna for implementation of the order dated 18.12.2000, passed in Complaint Case No. 25/98. In the complaint case the District Consumer Forum has directed the appellant (National Insurance Co.) to make payment of Rs. 1,00,000/- (Rs. one lac) with interest @ 18% from the date after three months of filing the complaint petition till the date of payment (vide Annexure I). THE respondent Insurance Company paid the petitioner (complainant) the decretal amount of Rs. 1,00,000/- with 12% interest and not @ 18%, as per order of the District Forum. THErefore, the order of the District Forum was not complied with totality. THEreafter the complainant filed the present execution case before the District Forum for implementation of the order of Forum in totality. THE District Consumer Forum after hearing the parties dropped the execution proceeding on the plea that the complainant has received the amount from the respondent in full and final settlement. In support of this contention, the complainant placed reliance on the decision of the Hon''ble National Commission in the case of National Insurance Company Ltd. v. New Bharat Rai Mills, reported in II (1997) CPJ 77 (NC), where it has been held that even if the discharge voucher showing full and final settlement executed by the appellant after the orders of the learned Court below, respondents are bound to comply with the order in execution case in totality. THErefore, in view of the decision of the National Commission, orders passed by the District Forum is bad in law. The respondant Insurance Company appeared and filed written statement stating therein that the order of the District Forum is in accordance with the settled law. The judgment debtor had written to the decree-holder that he had agreed with the settlement of the claim of Rs. 1,00,000/- with 12% interest. This petition was filed on 6.2.2001 and this amount was received by the complainant without any protest or allegation, therefore, he is estopped from putting the claim of 6% more interest and that too after several years.

We have perused the order passed by the District Forum, Patna in Complaint Case No. 25/98 dated 18.12.2000, whereunder the District Forum has directed the O.P. Insurance Company to pay the insurance amount of Rs. 1,00,000/- with interest of 18% p.a. after three months from the date of claim made before the Insurance Company. It is admitted fact that the complainant has received the insurance amount of Rs. 1,00,000/- with 12% interest and has signed on the discharge voucher without any protest. In the written statement filed on 5.8.2003 before the Court below the complainant has mentioned that he has received an amount of Rs. 1,79,500/- only due to financial crunch and 6% interest on the principal amount is still due. The order passed by the District Forum in the execution case dated 2.9.2003 mentioned that since the appellant (complainant) has received Rs. 1,00,000/- with 12% interest on 28.2.2001 as full and final settlement of the claim, therefore, he is not entitle for 6% more interest on the above amount and dismissed the execution proceeding.

WE have gone through the case law referred to above filed on behalf of the appellant National Insurance Company v. New Bharat Rai Mills, (supra) where it has been held that even after signing on the discharge vouchers as full and final settlement of the claim, the complainant can challenge the award of amount received under certain circumstance including where he has signed the discharge voucher under coercion and it was obtained under fraudulent. In the instance case the District Forum has ordered in Complaint Case No. 25/98 dated 18.12.2000 to pay interest @ 18% to the complainant on the insured amount of Rs. one lac. Admittedly the Insurance Company paid the interest @ 12% only. There was no valid reasons for the Insurance Company in not to abide with the direction of the District Consumer Forum with regard to the payment of interest @ 18%. This order was not challenged by the Insurance Company in the appeal. Therefore, the Insurance Company was entitled to pay the interest @ 18%, if the complainant has received the interest @ 12% and signed voucher with note as full and final settlement. The order of the District Forum passed in complaint case has not been modified at the instance of the parties. In appeal no party has the right to modify the order with the consent of the District Consumer Forum, which has passed the order with an indorsement of the fact receiving the amount in full and final settlement will not change the contents of the order of the Court. The complainant was entitled to make prayer before the District Consumer Forum in execution proceeding to direct the Insurance Company to comply with the order of the District Forum in its letter and spirit and without modifying the order by the District Consumer Forum itself. The Insurance Company was not entitled to pay the interest at the lesser rate of 12%, therefore, the District Consumer Forum has wrongly dismissed the execution proceeding at the request of the Insurance Company with a prayer that Insurance Company is bound to comply with the order of the State Commission passed in the above complaint case and to pay remaining 6% of Rs. one lac. Under the facts and circumstances the appeal is allowed. The impunged order dated 2.9.2003 is set aside. Respondent Insurance Company Ltd. is directed to comply the order of the District Consumer Forum passed in complaint case as referred above and pay remaining 6% interest to the complainant on the insured amount of Rs. one lac from the date of three months after the claim was filed till the date of payment, in addition to the amount which has already been paid to the complainant on 28.2.2001. However there shall be no order as to cost. Appeal allowed.