Petitioner was the opposite party before the District Forum.

          Complainant/Respondent No.2, while working as an Assistant Branch Manager, LIC at Jajpur, obtained a loan from LIC (Respondent No.1) and placed an order for a FIAT UNO LX-NONH metallic car and remitted a sum of Rs.2,92,348/- to the petitioner, which was the price of the car.  The delivery of the car was to be given within 6-8 weeks but the petitioner did not deliver the car on time nor any reasons were given for non-delivery of the car.  The amount paid by the complainant was also not refunded.  Being aggrieved, complainant filed complaint before the District Forum.

          District Forum allowed the complaint against the petitioner and directed it to deliver the car within two months from the date of passing of the order or refund the amount of Rs.2,82,348/- along with interest at the rate of 18% per annum from the date of receipt of the amount till repayment of the same, failing which the above amount was to carry further interest at the rate of 12% per annum.  Rs.10,000/- were awarded by way of compensation and cost of litigation. 

          Petitioner, being aggrieved, filed an appeal before the State Commission.  State Commission dismissed the appeal and upheld the order of the District Forum. 

Being aggrieved, present Revision Petition has been filed.

Limited Notice was issued by this Commission on 13.1.2006, which is to the following effect :

“On instructions from petitioner Sri Biswas states that the principal amount of Rs.1,93,348/- has been paid by the petitioner to complainant No.2.  Notice limited to rate of interest to the respondent returnable on 9^th May 2006.”

          Counsel for the petitioner made a statement after taking instructions from the petitioner that the sum of Rs.2,93,348/- have already been paid to the complainant.  Notice was issued limited to the point of interest.   District Forum, in its order, has recorded a finding that the complainant was to lose conveyance allowance of Rs.3,045.29 per month with effect from the date of sanction of the loan, i.e., 5.4.1999; that he had to repay the instalments of Rs.5,000/- per month against the loan along with interest at the rate of 18% per annum.  According to the counsel for the petitioner, the amount given to the complainant by the employer was interest-free.  Even if we take it that the amount advanced by way of loan was not to carry any interest, but still the complainant was being deprived of the conveyance allowance of Rs.3,045.29 per month with effect from 5.4.1999.  The sum of Rs.3,045.20 would come to little more than approx. Rs.36,000/- per year.  Complainant had taken the loan of Rs.2,92,348/-.  To compensate the petitioner at least to the extent that he is losing the conveyance allowance, the complainant is required to be compensated and, accordingly, we reduce the rate of interest from 18% to 12% per annum form the date of its deposit with the petitioner till the date it has been repaid.  Petitioner is directed to repay the sum of Rs.2,92,348/- from the date of its deposit till the date of its repayment after giving adjustment of Rs.2,92,348/-.

          Revision Petition stands disposed of in above terms.