05-02-2015 - Both these appeals involve similar facts and questions and therefore they were heard together and are being disposed of by this common order.

2.       Mr. Ashutosh Anand, learned counsel appearing for the complainants/ appellants in both the cases submitted that the LIC ( Life Insurance Corporation of India)/ Respondent ultimately paid the claim on the basis of the documents available with it,  which it could do much earlier and thus earned benefits by retaining the insured amount for a long period. Therefore the appellants are entitled to interest as per the judgement of District Consumer Forum.

3.       On the other hand, Mr. Sachin Kumar, learned counsel appearing for the LIC submitted that LIC has paid interest from 13.8.2008 as per the order passed on 22.3.2013 in the Execution Cases filed on behalf of the appellants. If the appellants were aggrieved by such order, they could prefer appeals but instead of doing that they filed Misc. case claiming interest as per the judgements of District Consumer Forum. Such prayer was actually for reviewing the earlier order passed by the Executing Court which was impermissible in law.

4.       F.A. No. 8/2014 arises from Complaint Case No. 8/2005 (judgement dated 28.7.2005) ; F.A. No. 282/05 ( order dated 2.12.2005) – Revision Petition No. 1003/2006 ( order dated 13.8.2008); Execution Case No. 2/2012 ( order dt. 22.3.2013) ; Misc. Case No. 4/2013 ( order dated 8.1.2014);

5.       FA No. 9/14 arises from the    Complaint Case No. 9/2005 (judgement dated 11.8.2005); FA No. 282/2005 (order dated 2.12.2005)- Revision Petition No. 1004/2006 ( order dated 13.8.2008) – Execution Case No. 3/12 ( order dated 22.3.2013)- Misc. Case No. 3/13 ( order dated 8.1.2014) .

6.       Consumer Case No. 8/05 was filed by the widow/ nominee and Complaint Case No. 9/05 was filed by the son/nominee of late Madan Prasad Singh, claiming insured amounts under certain policies.

7.       The learned District Forum allowed the said complaint cases and directed LIC to make payment of double amount of each of the insurance policies within 30 days from the date of the order failing which the complainant was made entitled also to interest @ 10% per annum till the date of payment.

8.       The appellants in both the cases are claiming interest from after the expiry of 30 days from the date of judgements passed by the Learned District Forum i.e. from 28.8.2005 in F.A. No. 8/14 and from 11.9.2005 in F.A. No. 9/2014.

9.       LIC preferred appeals against the said judgements before this Forum which were disposed off with the following observations;

“ 5. Learned Counsel submits that under the circumstances, L.I.C has not applied its mind and, as such, the very initiation of the proceeding under the Consumer Protection Act before the Court below is a premature one. Submission of the learned counsel seems to be well founded. There is nothing on record to suggest that the appellant has applied its mind with respect to the claim of the complainant in absence of the originals papers.

6.       In opposition, it is submitted that the investigation has already been closed, which is being disputed. Be that as it may, the complainant/ respondent will be at liberty to file petition before the Chief Judicial Magistrate, where the case is pending for return of those documents for the purpose of settlement of the claim. On receipt of the original documents, Insurance Co. will consider the claim of the claimant in accordance with law without being prejudiced by the order of this Commission. The Insurance Company will take a final decision only after getting clearance from the C.J.M / Investigating Officer. In the result, the order under challenge is hereby set aside, consequently, this appeal is allowed to the extent indicate above.”

10.     The appellants preferred Revision Petitions before the Hon’ble National Commission which were disposed of with the following order;

     “………... For the foregoing reason, we are of the considered opinion that observations made and directions given by the State Commission to the parties are legally unsustainable and should be modified suitably so that the claims pending with the Insurance Company are settled expeditiously.

                        In the result, we allow these revision petitions and set aside the impugned orders passed by the State Commission only and in so far as they have given the above two directions while allowing appeal of the LIC. We however, direct the respondent-LIC to settle the claims lodged by the complainants based on the copies of the policies and other relevant documents retained by them. In case no such copies are available in the office(s) of the LIC, the LIC may apply to the concerned court/IO for release of the said documents and then process the case of the petitioners- complainants in accordance with law without seeking or waiting for any clearance from the CJM/IO in that behalf.

11.     Thereafter it appears that on the basis of the documents available with it , the LIC made payments of the insured value of the Policies . The Appellants then filed Execution Cases, claiming interest as per  the orders passed by the learned District Forum.

12.     The learned Executing Court after hearing the parties directed the Insurance Company to pay interest from 13.8.2008, the date of the order of Hon’ble National Commission in both the cases. The LIC paid the interest as per that order.

           Thereafter the complainant again filed Misc. Cases claiming interest as claimed by them originally in the Execution cases.

13.     Mr. Sachin Kumar appearing for the LIC is right in his submissions that firstly the order of learned District Forum mearged in the order of Hon’ble National Commission and secondly the order of the Executing Court partly allowing the claim of the complainant, became final and  thereafter the appellants  could not claim the part of interest not allowed by the Executing court again.

14.     In our opinion also, the Misc. cases filed the appellants in both the cases, were not maintainable, as the appellants sought to review the earlier orders passed in the Execution cases.

15.     In the result, we find no merit in these appeals which are accordingly dismissed.  

          Issue free copy of this order to all concerned for information and needful.

                    Ranchi,

                   Dated:-05-02-2015