Order by:
Smt.Priti Malhotra, President.
1. Complainant has filed the instant complaint under section 35 of the Consumer Protection Act, 2019 on the stating that the complainant purchased one SBI Life Insurance Policy on 30.12.2015 and paid Rs.1,00,000/- through Cheque No.6206675 dated 30.12.2015 and the said cheque was also duly encashed by the bank on the same day. At that time, said Chief Manager of the bank has told to the complainant that total period of this policy is 05 years and it is a single "premium policy". Alleged further that till today the complainant has not received the policy bond of the said policy from the Opposite Parties and complainant visited the Opposite Parties office many a times for the said purpose, but to no effect. Thereafter, the complainant got statement of account from the bank from where it has come to his notice that said cheque amount of Rs.1,00,000/- was earlier transferred into the account of "Excise and Service Tax Account" and after that in the account of Opposite Party No.2 at Bank Branch of Nihal Singh Wala. Even in the BGL statement issued by the bank, the said amount has been shown as paid to Shubham SBI Life i.e. Opposite Party No.2. Complainant also wrote a letter dated 27.12.2021 for getting the statement of account but of no use. Alleged further that till date the complainant has not received the said insurance policy and has also not received back the said paid amount of Rs.1,00,000/- along with its benefits. Complainant also served legal notice dated 11.07.2022 upon the Opposite Parties, but to no effect. Due to this illegal act, the complainant has suffered mental tension, harassment and agony. Hence, this complaint. Vide instant complaint, the complainant has sought the following reliefs:-
a) Opposite Parties may be directed to return Rs.1,00,000/- already paid alongwith interest @ 18% p.a. alongwith all the benefits and maturity amount on the allotted policy to be issued by them.
b) To pay an amount of Rs.3,00,000/- as compensation for mental tension and harassment.
c) And any other relief which this Commission may deem fit and proper be also granted to complainant in the interest of justice and equity.
2. Opposite Party No.1 appeared through counsel and contested the complaint by filing written reply taking preliminary objections therein inter alia that the present complaint is not maintainable due to non-joinder of necessary parties as SBI Life is also necessary party; the present complaint is badly barred by limitation. On merits, it is admitted that complainant had paid Rs.1,00,000/- through cheque no.620665 dated 30.10.2015. All other allegations made in the complaint are denied and a prayer for dismissal of the complaint is made.
3. It is pertinent to mention over here that earlier Shubham SBI Life i.e. Opposite Party No.2 was not party to the present complaint. However, on 22.06.2023, ld. counsel for the complainant has moved an application for arraying Shubham SBI Life, through its Branch Manager/Responsible Person. Vide order dated 22.06.2023 the said application was allowed and Shubham SBI Life was allowed to be impleaded as party to the present complaint. Thereafter notice was issued to Shubham SBI Life i.e. Opposite Party No.2.
4. Upon service of notice, Opposite Party No.2 appeared through counsel and filed written reply taking preliminary objections therein inter alia that the complaint has been filed against SBI Life for refund of Rs. 1,00,000/- alleged to have been paid vide cheque no. 620655 dated 30.12.2015 from his bank account no. 00271000911352, payable at Punjab & Sindh Bank for issuance of policy. Hence the cause of action if any was in December, 2015. However, the complaint has been filed in the year 2022. The limitation period for the filing the complaint prescribed under section 69 of Consumer Protection Act is 2 years from the date of cause of action, however this complaint has been filed after 8 years of the cause of action of alleged amount paid. Hence the complaint is hopelessly time barred and liable to be dismissed on this ground alone. Averred further that the crux of the complaint is regarding refund of Rs.1,00,000/- with interest @ 18% per annum along with all benefits and maturity amount of the allotted policy which was to be issued by the Opposite Party No.2 through Opposite Party No.1 with compensation as prayed for, alleged to have been paid by the bank of the complainant to the SBI Life. The said amount was refunded in the same account in December 2015 by SBI Life. Hence this complaint is infructuous. It is further averred that in the instant case, SBI Life had received an amount of Rs.100000/- on 28.10.2015 vide Electronic Fund Transfer from State Bank of Patiala (now State Bank of India) account no.65020801049, name of account holder Mr.Excise against proposal form number 1KAL200154 in the name of Mr. Shubham Singla. However, SBI Life did not receive the proposal form (wrongly stated in written reply ‘did receive’), which is the basis of issuance of any policy and contain the details of life to be assured and policy to be taken. Hence the said amount of Rs. 1,00,000/- was refunded to the same bank account no.65020801049, on 8th December 2015, vide UTR Nos.SBIN215342735372. SBI Life was not having the address of complainant, as the proposal form was not received. The same was intimated to the bank. Averred further that for issuance of any policy the proponent is required to submit the proposal form, wherein the details of policy to be taken and details of the proponent are given to the insurance company. The information provided in the proposal form becomes the basis to assess the risk on the life of the proponent and issuance of the policy. In the instant case as the proposal form was not received the premium deposit of Rs.1,00,000/- was duly refunded as per details stated supra. Averred further that on receipt of the proposal form along with initial premium deposit, depending on the sum assured and age, specific reports would be called for and after the insurer is fully satisfied the proposal for insurance will be accepted and the risk cover shall commence. In the instant case, the proposal was never received by the SBI Life. There cannot be a contract without an offer/proposal and acceptance. Hence, the proposal deposit of Rs.100000/- was duly refunded and the same was credited to the same bank account from which it was received. It is further averred that the SBI Life Insurance Co. Ltd. was fully justified in returning the proposal deposit. The allegations made in the complaint are totally wrong, baseless and frivolous and ambiguous. This complaint is nothing but a distortion of the facts and the law and hence not maintainable. There is no deficiency in service on the part of SBI Life. As such, the complaint is not at all maintainable under the Consumer Protection Act. The SBI in its reply clearly stated that the bank has not sold any policy to the complainant and a false and concocted story has been made up by the complainant. On merits, it is submitted that the alleged cheque no.6206675 dated 30.12.2015 of Rs.1,00,000/- has not received by SBI Lie and hence not reflecting in the records of SBI Life. In parawise reply, all other allegations made in the complaint are denied and a prayer for dismissal of the complaint is made.
5. Complainant has also filed replication to the written reply of Opposite Parties denying the objections raised by it in its written reply.
6. In order to prove his case, complainant has placed on record his affidavit Ex.CW1 alongwith copies of documents Ex.C1 to Ex.C7.
7. On the other hand, Opposite Party no.1 placed on record affidavit of Sh.Vinod Kumar, Branch Officer State Bank of India Ex.OP1 alongwith copies of documents Ex.OP2 to Ex.OP3. Whereas, Opposite Party No.2 has placed on record affidavit of Ms.Neelam Singh, Authorized Representative of SBI Life Insurance Co. Ltd. Ex.OP2/1 alongwith copy of letter dated 11.12.2015 Ex.OP2/2.
7. The objections of the Opposite Parties qua the limitation period alleged to have been exhausted is not maintainable for the reason that the disputed amount in question till date has not been refunded/returned in the account of the complainant and thus, there is continue cause of action in favour of the complainant.
8. The grouse of the complainant in the present complaint is that an amount of Rs.1,00,000/- stood paid from his account in favour of Opposite Party No.2 against the policy to be issued, but till date the same has not been issued to complainant nor he received any of the amount so deposited by him. On the other hand, it is admitted by Opposite Party No.1 that complainant has paid Rs.1,00,000/- through cheque no.620665 dated 30.10.2015 and was transferred into the account of Opposite Party No.2. It is also admitted by Opposite Party No.2 that it received an amount of Rs.1,00,000/- on 28.10.2015 vide electronic fund transfer from Opposite Party No.1-State Bank of India, but it did not receive any proposal form, hence the said amount was refunded in the same bank account, from which, it has been received, as it was not having the address of complainant.
9. From the above, it is clear and evident enough that the disputed amount which the Opposite Party No.2 has claimed to be refunded to Opposite Party No.1, till date has not been disbursed and credited into the account of the complainant. The omission committed by Opposite Party no.1 for not refunding the amount in question in the account of the complainant caused not only financial loss to the complainant but also burdened him with mental harassment. Thus, the present complaint deserves to be allowed in favour of the complainant and liability is been fixed on the part of Opposite Party No.1 to credit the amount in question in the account of the complainant or to pay in cash the same amount to the complainant.
10. No doubt Opposite Party No.1 failed to credit the amount in question in the account of the complainant with immediate effect, when it received the same from Opposite Party No.2 and thus liable to make good the loss occurred to the complainant. At the same time we are not imposing any cost to Opposite Party No.1 for the simple reason that had the complainant approached the Opposite Parties within reasonable time his harassment would have been curtailed.
11. Sequel to the above discussion, we partly allow the present complaint of the complainant against Opposite Party No.1-State Bank of India and direct Opposite Party No.1-State Bank of India to refund the amount of Rs.1,00,000/-(Rupees One Lakh only) to complainant alongwith interest @ 8% from the date when the amount was debited from the account of the complainant i.e. 28.10.2015 till its actual realization. Keeping in view of the peculiar circumstances parties are left to bear their own costs. The compliance of this order be made by the Opposite Party No.1-State Bank of India within 30 days from the date of receipt of the copy of this order, failing which, the Opposite Party No.1 is burdened with additional cost of Rs.10,000/- (Rupees Ten Thousand only) to be paid to complainant for non compliance of the order. Copies of the orders be furnished to the parties free of cost. File is ordered to be consigned to the record room.
Announced in Open Commission.
