Haryana

Fatehabad

EX/24/2019

Kulvinder Singh - Complainant(s)

Versus

LIC - Opp.Party(s)

Vinay Sharma

01 Jun 2023

ORDER

Present:       Sh.Vinay Sharma, Advocate for the DH/complainant.                                          Sh.S.K.Dharnia, Advocate for the JD/Ops.

 

                   The present execution petition has arisen out of the judgment dated 29.05.2019  passed by this Commission (previously known as Forum) in case titled as Kulvinder Singh @ Kalvinder Singh Versus Life Insurance Corporation of India etc.  The conclusive paragraph is as under:

In view of all the facts and circumstances of the case and by taking a sympathetic view, we direct the Ops to refund of the amount of all the installments of premium paid by the complainant to the Ops alongwith interest at the rate of 8% per annum from the date of payment till realization. The above said order be complied with within a period of 45 days, otherwise the above said amount shall carry an interest at the rate of 9% per annum during the period of default.  With these directions, the present complaint is disposed of accordingly.  Copy of this order be supplied to both the parties free of cost.  File be consigned to the record after due compliance.

 

                   It has been averred in the execution petition that the JDs/Ops did not comply with the order passed by this Commission, therefore, now the DH/complainant is entitled to get payment of Rs.336077/- (7 deposited installments of Rs.48011/- each) alongwith interest @ 9 % per annum for the period of default alongwith Rs.25,000/- as compensation. The DH, in the end, has prayed for awarding punishment to the Ops/JDs for not complying with the order passed by this Commission.

                   On notice, JDs/Ops appeared and filed objections. It has been submitted that in compliance of the order dated 29.05.2019 passed by this Commission, the JDs/Ops have made the payment of all the installments of the premium  with interest after deducting the loan amount of Rs.1,69,000/- taken over the policy in question for making the payment of 3 installments with interest (Rs.40,836/-) on 22.07.2017.   The details of paid amount is as under :

                   Total premium paid :             Rs.3,36077/-

                   Rs.48011 X7)

                   Interest @ 8 %                         Rs.12,522/-                                                           upto 19.11.2019                     

                             Total  amount to be paid  Rs.3,48,599/-

                   Deductions:

                   Loan amount                            Rs.1,69,000/-                                                        Interest over loan amount                   Rs.40836/-

                   Deposit refundable to complainant                                                                        by State Commission           Rs.25,000/-                                      

                   Total Deductable amount:       Rs.2,09,836/-

                   Net payable amount                 Rs.1,13,763/-                                                       

                  

                   After deducting the amount of Rs.2,09,763/-  an amount of Rs.1,13,763/- has already been paid to the complainant on 21.11.2019, therefore, nothing is lying pending towards the JDs/Ops. It has been further submitted that JDs/Ops have already complied with the order passed by Hon’ble State Commission, therefore, the present execution is not maintainable. Prayer for dismissal of the same has been made.

                   Original file has also been summoned. Learned counsels for the parties have been heard and the material placed on the case file has been perused.

                   Fresh calculations have been placed on file by both the parties.  Learned counsel for the DH/complainant has argued that the JDs/Ops have not complied with the orders passed by this Commission as well as the order passed by Hon’ble State Commission as instead of making the payment of Rs.336077/- being paid installments alongwith interest @ 9 % per annum for the default period, the Ops/JDs have wrongly and illegally deducted an amount of Rs.2,09,836/- on account of loan facility, for which they have no right.

                   On the other hand, learned counsel for the JDs/Ops has come with the plea that the loan amount was deducted as per the terms and conditions of the policy in question.  He drew the attention of this Commission towards the sub clause (iv) of the term and condition No. 9 of the policy placed on the original case file.  The relevant clause is as under:

                   9. Policy loan:………………….

(iv) In case the policy shall mature or become a claim by death, the corporation shall become entitled to deduct the amount of the loan or any portion thereof which is outstanding together with all interest from the policy moneys.

                   Undisputedly, both the parties are bound by the terms and conditions, which are placed in the original case file titled as Kulvinder Singh Versus Life Insurance Corporation etc. relating to the policy in question.  Therefore, this Commission has no hitch to reach at the conclusion that the JDs/Ops are well within their right to recover the loan amount as depicted in the documents submitted by the learned counsel for the JDs/Ops alongwith objections.

                   Keeping in view the above findings, we hereby dispose off the present execution with the directions to the JDs/Ops to pay the balance amount of Rs.1,07,914/- as mentioned in the calculation sheet submitted by learned counsel for the Ops/JDs within a period of 15 days.

                             In default of compliance of this order, proceedings against respondents shall be initiated under Section 72 of Consumer Protection Act, 2019 as non-compliance of court order shall be punishable with imprisonment for a term which shall not be less than one month, but which may extend to three years, or with fine, which shall not be less than twenty five thousand rupees, but which may extend to one lakh rupees, or with both. A copy of this order be sent to the parties free of cost. Original file be sent back and the execution file be consigned to the record room after due compliance.     

Announced in open Commission.                                                                  Dated: 01.06.2023

 

                                      (Harisha Mehta)              (Rajbir Singh)                                                                Member                            President