SARLA DEVI vs MANAGER, LIFE INSURANCE CORPORATION OF INDIA

THIS appeal has been filed by Sarla Devi against the order of the District Forum, Jaipur dated 10.6.92 dismissing the complaint on the ground that in the facts and circumstances of the case the complaint was not entertainable by the District Forum.

WE have heard the learned Counsel appearing for the parties. The District Forum had mainly referred to a letter dated 21.5.91 which was sent by the Sr. Branch Manager of Life Insurance Corporation of India, Jaipur Division Sanganer inviting the attention of the complainant to the letter to the Divisional Office Jaipur dated 7.2.90 whereby the claim was repudiated. The said letter dated 7.2.90 under which the claim was stated to have been repudiated had not even been produced before the District Forum. The District Forum was of the view that where the Life Insurance Corporation repudiates a claim, the District Forum has no jurisdiction to entertain and decide a complaint under the Consumer Protection Act, 1986. The order of the District Forum is erroneous. As already stated the Life Insurance Corporation had not even produced before the District Forum the letter under which the claim of the complainant was repudiated. We even do not know as to on what ground the claim of the complainant was repudiated by the Life Insurance Corporation of India. A Consumer Forum has jurisdiction to decide where the repudiation was made in good faith and for justifiable reasons. The complaint could not be thrown out on the mere ground that in the letter dated 31.5.91, the Dausa Office of the LIC had referred to a letter dated 7.2.90 alleged to have been sent to the complainant repudiating the claim.

We, therefore, allow this appeal, set aside the order of the District Forum, Jaipur dated 10.6.92 and remand Complaint Case No. 1239/91 to the District Forum, Jaipur with the directions to decide the complaint afresh after giving both the parties opportunity to prove their case. Appeal allowed.