Order-26.

Date-19/09/2016.

This is an application u/s.12 of the C.P. Act, 1986.

Complainant by filing this case states that M/s Ten Dot Net Cable Pvt. Ltd. issued two cheques bearing Nos.635735 of Rs.34,060/- and 635853 of Rs.5,25,895/-  for the purpose of making insurance policies for the factory building with stock as well as employees compensation liabilities policy in favour of the United India Insurance Co. Ltd. drawn on Allahabad Bank through O.P.-5 Soma Debnath and O.P.-4 Development Officer viz. Tanmoy Das. The chequessaid were encashed in favour of United India Insurance Co. Ltd. dated 06/02/2014 and 13/02/2014 respectively. Till date complainant has not received any policy papers from O.P.-4 (Development Officer, United India Insurance Co. Ltd.) and O.P.-5 (Agent, United India Insurance Co. Ltd.). They demanded an amount of Rs.2,82,630/- more. Complainant issued a cheque on the said amount but directed Kotak Mahindra bank to stop payment knowing first the identity of the O.Ps.-4 and 5 is fake. Complainant informed the officials of the Insurance Company but they informed that they have handed over all policy documents to their Agent. Complainant again wanted to know the details of policy papers. On being asked the regional Manager, of the Insurance Company informed that on 04/08/2015 details of policy along with duplicate policy papers were issued in the name of Power Grid Corporation of India Ltd. and PCM Alloys Steels Pvt. Ltd. Complainant informed O.Ps.-1, 2 and 3 that they are neither Power grid Corporation nor PCM Alloys. So the policy papers are not correct but the O.Ps. remained silent. Complainant also sent a legal notice through his Ld. Lawyer and demanded refund of the cheques, but with no steps at the end of the O.Ps. side. So complainant prays for refund of cheques of Rs.34,060/- and Rs.5,25,895/- along with 18 percent interest and also prays for Rs.20,000/- towards mental agony suffered by the complainant and Rs.10,000/- towards litigation cost.

O.P.-2, the Regional manager, United India insurance Co. Ltd. contested this case by filing W.V. contending inter alia that the instant complaint is bad for non-joinder and mis-joinder of O.Ps.. Complainant has no locus-standi to sue against the O.ps. O.P.-2 also states that M/s PCM Alloys Steel Pvt. Ltd. for taking insurance policy coverage paid premium of Rs.5,25,895/- vide cheque No.635466 dated 24/01/2014 to this O.P. and the insurance company also issued the insurance policy in favour of O.Ps.-6. But subsequently as those cheques were dishonoured this O.P./ cancelled the issued policy. O.P.-2 further submits that Mr. DebashisNandy who is an employee of complainant and represented O.P.-6 submitted A/c payee cheque being No.635853 dated 10/02/2014 of Rs.5,25,895/- to O.P.-2 for issuance of policy in favour of O.P.-6 and complainant also paid another A/c payee cheque of Rs.34,060/- as premium to the O.P.-2. Accordingly policy was issued in favour of O.P.-6. This O.P. has no negligence in issuing  policies and O.P.-2 prays for dismissal of this complaint.

O.P.-6 also contested this case by filing W.V. stating therein that the complainant has no claim against O.P.-6 and this O.P. has no connection regarding payment of premium and insurance policy. As such this O.P.-6 prays to expunge his name from this case.

Decision with reasons

          On proper evaluation of the complaint petition, written version and other documents it is revealed that O.P.-6 paid Rs.5,25,895/- for issuance of two policies in favour of O.P.-6 as per proposal and policy was issued. Subsequently as the said cheque was dishonoured O.P.-2 cancelled the issued policy and also intimated to O.P.-6.

From the record, it appears that complainant paid Rs.5,25,895/- and Rs.34,060/- for the purpose of making insurance policies to United India Insurance Co. Ltd. upon being asked the insurance company sent policy documents to complainant but the said policy was issued in favour of O.P.-6. Then complainant raised objection and wrote a letter to O.P.-2 to refund the premium amount as policy was issued in the name of O.P.-6. Thereafter, complainant sent legal notice through his Lawyer for refunding the premium amount. But O.P.-2 did not pay heed to the request of the complainant. O.P.-6 never claimed that they have paid the premium amount on the basis of which subsequent policies were issued.

O.P.-2 neither produced any document such as proposal form nor produced any cogent evidence to prove that complainant paid the aforesaid premium amount for issuance of said policies in favour of O.P.-6.

It is the general principle regarding issuance of insurance policy that proposal form has to be submitted and that would be  signed by the proposer to the effect that under whose name the policy is to be issued as the insurance is contractual agreement.

In view of the above facts, it is crystal clear that O.P.-2 is negligent in discharging his service. Complainant is deprived in getting a policy. So O.P.-2 must be penalized for unfair trade practice and complainant is entitled to get compensation along with the policy amount.

In the result, complaint succeeds.

Hence,

Ordered

That the case be and the same is allowed on contest against O.Ps.-1 to 7.

O.P.-2 is directed to refund the premium amount of Rs.5,25,895/- and Rs.34,060/- totaling of Rs.5,59,955/- with interest @ 9 percent p.a. from the date of deposit i.e. from 13/02/2014 within one month from the date of this order. 

O.P.-2 is further directed to pay Rs.10,000/- towards compensation for causing harassment, mental agony and sufferings to the complainant together with Rs.10,000/- towards litigation cost within the aforesaid stipulated period, failing which, a penal damage of Rs.200/- per diem to be paid to this Forum till full satisfaction of the decree.

Complainant is at liberty to put this order into execution as per provision of Law.