BEFORE A.P STATE CONSUMER DISPUTES REDRESSAL COMMISSION AT HYDERABAD

F.A.No.504 OF 2013 AGAINST E.A.No.48/2010 in  C.C.NO.616 OF 2008 DISTRICT FORUM-II VISAKHAPATNAM.

Between:

1.   The Branch Manager,

Oriental Insurance Company Limited,

Prakashraopeta,

Visakhapatnam.

2.   The Branch Manager,

The Oriental Insurance Co. Ltd.,

Head office at A-25/27,

Asaf Ali Road,

New Delhi-110 002.

3.   The Branch Manager,

Oriental Insurance Co. Ltd.,

Divisional Office-III,

Chennai, Uthamar Gandhi Salai

        2^nd floor, Rosy Towers,

        Nungambakkam, Chennai.                            Appellants/

                                                                        O.Ps.

A N D

D.Srinivasa Reddy S/o.Rami Reddy

D.No.65-6-571/D, Opp:Zinc,

Gajuwaka, Visakhapatnam.                                   Respondent/

                                                                        Complainant

Counsel for the Appellants             M/s M.Hari Babu

Counsel for the Respondent           - Respondent served.

QUORUM:   SRI R.LAKSHMINARASIMHA RAO, HON’BLE I/c.President.

                                        SRI THOTA ASHOK KUMAR, HON’BLE MEMBER

AND

SRI S.BHUJANGA RAO, HON’BLE MEMBER.

WEDNESDAY, THE EIGHTEENTH DAY OF DECEMBER

                                   TWO THOUSAND THIRTEEN

 Order (As per Sri R.Lakshminarasimha Rao, Hon’ble I/c. President)

                                        ***

This is an appeal preferred by the appellants U/s.27-A of Consumer Protection Act, 1986 against the proceedings and order dated 03-7-2013 issuing warrants in E.A.No.48/2010 in CC No.616/2008.

The appellants preferred appeal U/s.15 of Consumer Protection Act, 1986 aggrieved by the order of the District Forum-II Visakhapatnam whereby it directed the appellants to pay Rs.3,40,803/- together with interest @ 12% p.a. from 01-1-2007 till the date of realization together with compensation of Rs.30,000/- and costs of Rs.5,000/- and this Commission vide order dated 26-6-2012 allowed the appeal in part modifying the order of the District Forum  while disallowing the entire claim amount awarded by the District Forum in view of payment to the financier and the appellants was directed to pay the balance of Rs.84,803/- with interest at 12% p.a. from the date of complaint viz., 19-9-2008 till the date of realization while confirming the compensation of Rs.30,000/- and costs of Rs.5,000/- and granted time of four weeks for compliance of the said order.

As the order dated 26-6-2012 was not complied with, the respondent filed E.A.48/2010 before the District Forum and the District Forum vide order dated 03-7-2013 issued warrants against the appellants. 

The appellants contend that the order of the District Forum was passed without considering the fact that the appellants deposited more than the modified award amount and the amount is lying before this Commission and that the Transfer application No.F.A.I.A.No.1480/2013 has been allowed on 03-7-2013 transferring the amount to the District Forum.  The appellants submit that the District Forum failed to follow the procedure under Criminal Procedure i.e. Section 200 and other Sections thereon as per Cr.P.C. to issue summons, warrants or impose sentence on the appellants and as such the proceedings in E.A.48/2010 are illegal.  The order of the District Forum imposing punishment of two months simple imprisonment in the absence of appellants is against principles of natural justices and relied on the decision of this Commission reported in 1998 ALD (Cons.) 204, 282 and 2000 ALD (Cons.)89 and therefore prayed to set aside the proceedings dated 03-7-2013 issuing warrants in EA 48/2010.

Heard the counsel for the appellant.  Since the amount awarded was already deposited before this Commission and the appellants moved transfer application F.A.I.A.No.1480/2013 which was ordered on the same day of issuance of warrants in EA by the District Forum i.e. on 03-7-2013, we set aside the order of the District Forum in E.A.No.48/2010 dated 03-7-2013 and remit back the matter with a direction to the District Forum to follow the procedure under Criminal Procedure i.e. Section 200 Cr.P.C.  while entertaining the application filed under Section 27-A of Consumer Protection Act, 1986 and pass order in accordance with law.

In the result this appeal is allowed and the order of the District Forum in E.A.No.48/2010 dated 03-7-2013 is set aside.  There shall be no order as to costs.

                                                        INCHARGE PRESIDENT.

                                                        MEMBER.

                                                        MEMBER.

                                                        Dt.18-12-2013.