Date of filing:13.09.2022 & 26.09.2022

                                                   Date of Disposal:09.06.2022

BEFORE THE KARNATAKA STATE CONSUMR DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

DATED: 09^th Day of June 2023

PRESENT

HON’BLE Mr. JUSTICE HULUVADI G. RAMESH: PRESIDENT

Mr K. B. SANGANNANAVAR: JUDICIAL MEMBER

Mrs DIVYASHREE M: LADY MEMBER

APPEAL NOs.1864 & 1931 of 2022

APPEAL No. 1864/2022

Karnataka Bank Ltd.,

Koppadakere Branch,

Martha Colony Road,

Dharwad-580008

Rep. by its Manager.…….. Appellant

(By Mr.Prashant T Pandit, Adv.)

-Versus-

1. Sri. Narayan,

S/o Dongarasa Walavekar,

Age 64 years,

Occ: Business,

R/o Nithin Nagar Plots,

Flat No.21,

Behind Dr.Golappanavar Home,

Koppadakere

Dharwad-580008

​

(By Mr.M.S.Santhosh, Adv. for R1)

2. The Manager,

PNB Metlife India Insurance Co. Ltd.,

Registered office: Unit No.701, 702 & 703,

7^th Floor, West Wing, Raheja Towers 26/27

M.G. Road, Bengaluru-560001.

3. The Manager,

PNB Metlife India Insurance Co. Ltd.,

1^st Floor, Shweta Complex,

Lamington Road,

Hubballi

Dist: Dharwad-580020…….. Respondents

(By Mr.Susheel Shankar, Adv. for R2 and R3)

APPEAL No.1931/2022

M/s PNB Metlife India Insurance Co. Ltd.,

Represented by its Authorized Representative,

No.26/27, 7^th Floor, Raheja Towers,

Unit No.701 to 703,

West Wing, M.G.Road,

​Bengaluru

(By Mr.Susheel Shankar, Adv.)

-Versus-

1. Shri Narayan D Walvekar,

Aged 64 tears,

R/o Nithin Nagar Plots,

Falt No.21, Behind Dr. Golappanavar Home,

Koppadakere

Dharwad-580008

2. The Manager,

Karnataka Bank Ltd,

First Floor,

Maratha Colony Road,

Koppadakere

Dharwad-580008

                                 …….. Respondents

(By Mr.Prashant T Pandit, Adv. for R2)                                                                                                                                                                                                                    

C O M M O N O R D E R

BY HON’BLE Mr. JUSTICE HULUVADI G RAMESH : PRESIDENT

1. These two appeals are filed under Section 41 of Consumer Protection Act, 2019, one by OP3 and another by OP Nos.1 and 2 in CC/147/2020, aggrieved by the order dated 18.06.2022 passed by District Consumer Disputes Redressal Commission, Dharwad (for short District Commission and the parties arrayed as in the consumer complaint)

2. The nutshell of the facts and circumstances of the case before the Commission below are thus: Complainant raised Consumer Complaint before the Commission below alleging deficiency in service on the part of OPs for non-disbursement of unclaimed amount of Rs.25,500/- as stated by OP2 in their letter dated 14.06.2020 in respect of policy and has not received any benefits as per the policy conditions.  Upon service of notice OP Nos.1 and 2 appeared through learned counsel and contested the matter contending that complainant had assigned the policy to OP3 by way of Assignment dated 24.07.2017.  Thereafter, complainant approached insurance company for surrender as per clause 3.5 and an amount of Rs.82,696.44/- was paid by the insurance company to OP3 since the policy was assigned to OP3.  The Insurance Company duly paid the surrender amount as per the terms and conditions of the policy and calculation.  In view of the same all the benefits including monthly pay-outs have been duly paid to the complainant.  Therefore no further amount is payable to him by the complainant.  Thus sought for dismissal of the complaint.  OP3 inspite of service of notice failed to appear before the Commission below and thus was placed exparte.  Commission below after holding detailed enquiry recorded reasons stating that OP Nos.1 and 2 have not produced any iota of documentary evidence to prove that there was an assignment of the policy in favour of OP3 by the complainant. Thereby directed OP Nos.1 to 3 are jointly and severally liable to pay a total sum of Rs.1,08,196.44/- to the complainant within one month from the date of order.  In case of their failure to pay the said amount then the same carried the interest @ 08% p.a. from the date of order till realization.  Further directed OPs to pay a sum of Rs.5,000/- towards cost of litigation.

3.  Aggrieved by the said Order, these two appeals are filed, one by OP3 in Appeal No.1864/2022 on the ground that the impugned order is perverse, not maintainable either in law or on facts and is liable to be set aside and another by OP Nos.1 and 2 in Appeal No.1931/2022 on the ground that impugned order is incorrect and is against the facts and circumstances of the case and is liable to be set aside.

4. Commission heard learned counsels on record and perused the impugned order passed by Commission below in CC/147/2020, dated 18.06.2022.  Now Commission has to decide whether impugned order passed by the Commission below is contrary to facts and law as appealed by OPs?

5. It is undisputed fact that complainant had purchased Met Monthly Income Plan 7 Pay Policy bearing policy No.20623134 on 29.07.2011.  It is also not in dispute that complainant had paid premium every year as per the policy terms.  The only dispute is related to receiving of benefit as per the terms and condition of the policy by complainant.  It is put forward by OP Nos.1 and 2 that complainant by virtue of an Assignment Deed dated 24.07.2017 has assigned the instant policy to OP3/Bank. To find support insurance company had placed Annexure-4 (Colly) which consists of Form of Assignment, Details of Assignee, Assignment Letter to Assignor and Assignment Letter to Assignee.  On Perusal of these documents could see that on 24.07.2017 Mr.Narayan Walvekar/complainant as the beneficial owner of policy No.20623134 issued by PNB Metlife India Insurance Company Limited for sum assured Rs.50,000/- had transferred and assigned the right and benefits of the Policy to the Assignee Karnataka Bank Limited who is none other than OP3.  In the Form of Assignment it is clearly mentioned that the Type of Assignment is Absolute and had received Rs.50,000/- as consideration from the Assignee/OP3 in respect of the aforesaid assignment.  Further ink page no.63 of Annexure-4 could see that OP3 Branch Manager vide mail dated 25.07.2017 requests as thus - “Adverting to the above we request you to assign the following policy in our favour as borrower has requested for loan for Rs.50,000/-.  Policy No.20623134, Mr.Narayan Walvekar, Rs.50,000/-.” Consequently on 26.07.2017 the insurance company issued Assignment Letter to both Assignor and the Assignee.  Thus on examining all these documents it is clear that upon the request of complainant the insurance company had assigned the said policy to OP3 bank as per Sec.38 of the Insurance Act, 1938 and complainant against the security of such policy had availed loan from OP3 Bank to the tune of Rs.50,000/-.  Further OP Nos.1 and 2 Insurance Company had placed Annexure-5 which consists of Letter dated 04.10.2019 issued from Karnataka Bank Limited to the Branch Manager, PNB Metlife India Pvt. Ltd., and Policy Service Payout Request Form.  As per the letter dated 04.10.2019 OP3 Bank had requested OP Nos.1 and 2 to remit the proceeds of the policy bearing No.20623134 to enable them to close the loan availed by Mr.Narayan D Walvekar/complainant on the said policy and credit the proceeds to OD a/c no.5017000100032201 of Mr.Narayan D Walvekar.  Upon the request received from Bank the insurance company had processed on 13.02.2020 and as per the terms and conditions of the policy had paid the surrender amount of Rs.82,696.44/- to OP3 Bank since the policy was absolutely assigned to OP3. Thus documents reveal that OP Nos.1 and 2 by virtue of Surrender Application had disbursed the amount to OP3 Bank.  These entire facets are not disputed by OP3 Bank and had agreed that on 15.02.2020 OP Nos.1 and 2 had credited the surrender amount of Rs.82,694.44/- to complainants overdraft account.  It is submitted by OP3 Bank that complainant was a defaulter in repayment of loan amount of Rs.50,000/- and was due to the tune of Rs.66,386/-. After crediting of the surrender amount by the insurance company OP3 Bank recovered the due amount and the balance amount held in overdraft account of complainant is adjusted to the term loan account as per the consent of the complainant. 

6. Thus on perusal of the appeal papers it is conceivable that OP Nos.1 and 2/Insurance Company had credited the surrender amount to complainants overdraft account and as submitted by OP3 Bank after taking consent of the complainant the balance amount is adjusted to the term loan account.  Therefore, we could draw inference that the complainant had received benefits of the policy as per the terms and conditions of the policy.  But fact remained, complainant had also filed consumer complaint before the Commission below alleging deficiency in service for non-disbursement of unclaimed amount of Rs.25,500/- as stated by OP2 in their letter dated 14.06.2020 in respect of policy. As per Ex.C1 the offer letter given by OP Nos.1 and 2 states that complainant is entitled to receive Rs.25,500/- and even before the Commission below OP Nos.1 and 2 had agreed that the said amount belongs to the complainant and is lying as unclaimed in respect of the policy. In such circumstances, complainant is entitled for disbursement of the unclaimed amount of Rs.25,500/- to meet ends of justice. Nonetheless, the Commission below drawn an adverse inference for non production of documents and since OPs have placed all the documents before us, it is admissible for us to concede those documents.  Under such situation, we are of the view that impugned order requires interference of this Commission.   Accordingly, Commission proceeds to dispose off both Appeal Nos.1864 and 1931 of 2022 and direct OP Nos.1 and 2/Insurance Company to pay the unclaimed amount as agreed by them in the offer letter issued to the complainant within 30 days from the date of receipt of this order. No award is passed against OP3 Bank. Consequently, set aside the impugned order passed in CC/147/2020 by District Consumer Disputes Redressal Commission, Dharwad.

7. The Amount in deposit is directed to be transferred to Commission below for needful.

8. Keep the original order in A/1864/2022 and copies thereof in A/1931/2022 to complete the record.

9. Send a copy of this Order to the District Commission and parties to the appeal.

Lady MemberJudicial MemberPresident

*GGH*