BEFORE THE DISTRICT CONSUMER FORUM AT NALGONDA
PRESENT: SRI MAMIDI CHRISTOPHER,
PRESIDENT.
SMT.S.SANDHYA RANI,
FEMALE MEMBER.
SRI K.VENKATESHWARLU,
MALE MEMBER.
. . .
THURSDAY, THE SIXTH DAY OF FEBRUARY, 2020
CONSUMER COMPLAINT No. 15 OF 2019
Between:
Sri V.Venkateshwarlu S/o Ramesh, Aged: 62 years, Occ: Nil,
R/o H.No.12-84, Seetarampuram, Miryalguda-508 207,
Nalgonda District-.
…COMPLAINANT.
AND
1. Assistant Provident Fund Commissioner (Audit), 3-4-763,
Bhavishya Nidhi Bhavan, Barkatpura, Hyderabad-500 027.
2. The Branch Manager, LIC of India, CB-III, Pisagh Complex,
Nampally, Hyderabad-500 001.
…OPPOSITE PARTIES.
This complaint coming on before us for final hearing, in the presence of Sri A.Srinivas, Advocate for the Complainant, and Sri K.Raghuram Reddy, Advocate for the Opposite Party No.1, and Sri M.Narsimha Reddy, Advocate for the Opposite Party No.2, and on perusing the material papers on record, and having stood over for consideration till this day, the Forum passed the following:
ORDER OF THE FORUM DELIVERED
BY SMT.S.SANDHYA RANI, FEMALE MEMBER
1. The Complainant filed this complaint Under Section 12(1)(a) of Consumer Protection Act, 1986 to direct the Opposite Parties to pay an amount of Rs.1,45,475/- with interest at the rate of 24% p.a. from the date of filing of the complaint till realization, Rs.25,000/- towards costs and Rs.1,00,000/- towards compensation.
2. The facts leading to the filing of this complaint are as follows:
The Complainant worked as Gumastha in M/s Gopi Krishna Parboiled Modern Rice Mill, Miryalguda, who was the Member of
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Provident Fund Account No.AP18739/26 and he purchased a Life Insurance Policy from Opposite Party No.2 through Opposite Party No.1 in the year 2000. The Opposite Party No.2 issued Policy bearing No.600472262. The Complainant paid the entire premium till the date of maturity, i.e. August, 2015. After completion of the maturity period, the Complainant requested the Opposite Parties to settle the claim amount. The Opposite Party No.2 informed the Complainant to forward all documents through Opposite Party No.1. The Complainant submitted all necessary documents to Opposite Party No.1 to forward the same to Opposite Party No.2 for the maturity amount to be paid to the Complainant. The Complainant submitted the necessary documents on 23/12/2015 through his employer, i.e. M/s Gopi Krishna Parboiled Modern Rice Mill, Miryalguda to Opposite Party No.1 requesting to settle the maturity amount under the policy and the reminder was also sent by the employer of the Complainant on 26/07/2016. There was no reply from Opposite Party No.1. Again the Complainant addressed a letter to the Opposite Party No.1 on 22/08/2016 to pay the maturity amount. The Complainant has not received the maturity amount and his claim was not settled by the Opposite Parties No.1 and 2. The Complainant made several representations and visited the Opposite Parties No.1 and to disburse the amounts, but they kept silent for the reasons best known to them. Finally, the Complainant received a letter from Opposite Party No.1 on 03/01/2017 that they have forwarded the policy documents to Opposite Party No.2 to send the maturity amount to the Regional P.F. Commissioner, Hyderabad. The Complainant waited for the information from Opposite Party No.2 and Opposite Party No.2 informed the Complainant that they have settled the maturity amount
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and dispatched a cheque for an amount of Rs.89,499/-, dated 11/08/2017 to the office of Opposite Party No.1 directing to pay the amount to the Complainant. The Complainant approached the Opposite Party No.1 and requested to pay the amount, but he was not given the amount. The Complainant finally got issued a legal notice to the Opposite Parties No.1 and 2 on 12/11/2018 demanding them to pay the maturity amount with interest @ 24% p.a. from the date of maturity. The Opposite Parties No.1 and 2 received the notice and kept silent. The Opposite Parties No.1 and 2 not settled the maturity amount under LIC Policy No.6004472262 was unfair upon their part, for which amounts to deficiency in service. As such, the Complainant filed this complaint.
3. The Opposite Party No.1 filed written version stating that the Opposite Party No.1 organization is created by the Central Enactment working under the Ministry of Labour, i.e. The Employees Provident Funds and Misc.Provisions Act, 1952 for the benefit of the employees of Private/Public undertakings covered under the statute and rendering service to the members of the fund constituted to provide social security benefits as per the statute. The Opposite Party No.1 admitted that the Complainant is a member and covered under the provisions of the Employees Provident Fund and Miscellaneous Act, vide Account No.AP/HYD/18739/26. The Complainant obtained the LIC Jeevan Mitra Triple Cover Policy No.600472262 with effect from 11/08/2000 for a sum assured of Rs.49,000/- and the mode of payment is yearly. The said policy was assigned to the Regional P.F. Commissioner, Hyderabad. The maturity benefit amount of the said policy was Rs.89,444/- and the same was received vide Cheque No.861563,
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dated 11/08/2017 and the same was returned to LIC Office on 08/12/2017 as the cheque was time barred. The Opposite Party No.1 requested the Opposite Party No.2 to release the maturity benefit amount of the above said policy directly to the member’s bank account as his PF account was also settled on 18/03/2004 itself and the same was intimated on 28/11/2018. The Opposite Party No.1 submitted that on much persuasion, LIC maturity benefit of Rs.97,706/- was received by the Opposite Party No.1 and confirmed by the LIC Maturity Benefit Cell on 12/02/2019 and due to the technical reasons the amount was not credited into the Complainant’s account. As the PF accumulations were settled on 18/03/2004, the member record not exist in member balance. When the Accounts Section tried to open zero balance account, application software has shown error as “Scheme Certificate details exist for this member please release legacy data”. The Opposite Party No.1 explained the Complainants, the facts and the office was instructed to submit scheme certificate for release of member service, but the member refused to do so. Subsequently, the Opposite Party No.1 initiated and released the LIC maturity benefit amount of Rs.97,706/- along with interest of Rs.4,216/-, totaling a sum of Rs.1,01,922/- has been credited to the Complainant’s bank account No.035710100064795, IFSC Code: ANDB0000357, Miryalguda Branch, through NEFT on 24/06/2019. Subsequently, the Opposite Party No.1 received the notice from this Hon’ble Forum and submitted that the contentions raised by the Complainant are an afterthought and there was no deficiency in service on the part of the Opposite Party No.1 and as such the complaint is liable to be rejected and dismissed.
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4. The Opposite Party No.2 filed written version denying the averments of the complaint and stated that the Complainant is a member of the Policy No.600472262 issued for a sum of Rs.49,000/- under T&T 133-16 with risk commencing from 11/08/2000. The said policy is assigned to the Commissioner, Regional Provident Fund, Barkatpura, Hyderabad. The Regional Provident Fund office prepared a cheque in favour of the assignee on 09/08/2017 and the same was dispatched. The said cheque was not encashed and became stale. After continuous follow-up, NEFT details of RPF Office were received and fresh payment to RPF Commissioner was made on 06/12/2018 for Rs.97,706/-, vide UTR No.N344180176340785 and received confirmation that the amount was credited on 10/12/2018. The Opposite Party No.2 submitted that the maturity amount was already been made to the assignee and sent a reply to Advocate’s Notice, dated 11/12/2018 that the maturity claim was already been made. There is no cause of action to file this complaint against the Opposite Party No.1 and as such the complaint is liable to be dismissed.
5. The Complainant filed his affidavit and marked Exs.A-1 to A-6. The Opposite Party No. filed his affidavit and marked Exs.B-1 to B-3. The Opposite Party No.2 filed his affidavit and marked Exs.B-4 to B-6.
6. The points for consideration are:
1) Whether there was deficiency in service on the part of the
Opposite Parties No.1 and 2?
2) Whether the Complainant is entitled for the reliefs as
prayed for?
3) If so, to what extent?
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7. POINT No.1:
The Complainant who worked as Gumastha in M/s Gopi Krishna Parboiled Modern Rice Mill, Miryalguda, was the Member of Provident Fund Account No.AP18739/26 and he purchased a Life Insurance Policy bearing No.600472262 from the Opposite Party No.2 through Opposite Party No.1 in the year 2000 and the Complainant paid the entire premium till the date of maturity, i.e. August, 2015. After completion of the maturity period, the Complainant’s employer gave a representation on 23/12/2015 vide Ex.A-1 to the Opposite Party No.1 to pay the maturity amount to the Complainant. As there was no response to the said letter, the employer again sent a representation to the Opposite Party No.1 on 26/07/2016, vide Ex.A-2 to release the maturity amount. In spite of representations by the employer of the Complainant to the Opposite Party No.1, the complaint was not settled with the maturity amount. Finally, the Complainant has received a letter from Opposite Party No.1 on 03/01/2017 addressed to Opposite Party No.2 to arrange the maturity amount to their office by forwarding the documents in favour of the Regional P.F. Commissioner, Hyderabad. The Complainant waited for the information from Opposite Party No.1 to receive the maturity amount and Opposite Party No.2 informed the Complainant that they have settled the maturity amount and dispatched a cheque for an amount of Rs.89,499/-, dated 11/08/2017 to the office of Opposite Party No.1 and directed to pay the amount to the Complainant. The Complainant approached the Opposite Party No.1 to pay the amount, but he was not paid the same. The Complainant finally got issued a legal notice to the Opposite Parties No.1 and No.2 on 12/11/2018, vide Ex.A-4
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demanding them to pay the maturity amount with interest @ 24% p.a.
from the date of maturity. The Opposite Party No.1 replied to the said legal notice, dated 28/11/2018, vide Ex.A-5 requesting the Opposite Party No.2 to release the maturity benefits of Policy No.600472262, P.F.Accont No.AP/HYD/18739/26 of the Complainant which was matured on 11/08/2016. It is stated in Ex.A-5 that the maturity amount was received from LIC Office, vide Cheque No.861563, dated 11/08/2017 and the same was returned to LIC Office on 08/12/2017 as the cheque was time barred and the office did not receive any cheque again. It was directed to Opposite Party No.2 to release the maturity benefit amount of the above said policy directly to the member’s bank account as his PF account was settled in 03/2004, to avoid the hardship to the member and the legal complications. The Complainant did not receive any amount from either the Opposite Party No.1 or Opposite Party No.2 and finally he filed the present complaint against the Opposite Parties No.1 and 2. The Opposite Party No.2 replied to the legal notice issued by the Complainant on 11/12/2018, vide Ex.A-6 to the Complainant’s Advocate stating that the Complainant has taken LIC Jeevan Mitra Triple Cover Policy bearing No.600472262, commencing from 11/08/2000 for a sum assured of Rs.49,000/- and the said policy was assigned to the Commissioner, Regional Provident Fund, PF Office, Barkatpura, Hyderabad and they prepared a cheque in favour of the Complainant after receipt of the requirements on 09/08/2017 and dispatched the same by post. It is further stated in Ex.A-6 that since the cheque was not encashed, it has become stale and to initiate fresh payment in lieu of stale cheque and that they received NEFT details of RPF Office and made payment to RPF Commissioner on 06/12/2018 for Rs.97,706/-,
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vide UTR No.N344180176340785 and confirm that the same has been credited on 10/12/2018 with an inordinate delay by Opp.Party No.2.
8. The Opposite Party No.1 in spite of settling the maturity claim amount of the Complainant on 18/03/2004 for Rs.89,499/-, could not pay the amount to the Complainant immediately and only in the year 2017, a cheque was issued by Opposite Party No.2, vide Ex.B-1 letter dated 03/01/2017 to Opposite Party No.2 to arrange the cheque in favour of the Regional Provident Commissioner, Hyderabad. The Opposite Party No.1 gave a representation on 28/11/2018 to Opposite Party No.2 stating that they have received maturity benefit of Rs.89,499/- from Opposite Party No.2, vide Cheque bearing No.861563, dated 11/08/2017 but could not be encashed as the cheque was time barred and finally directed the Opposite Party No.1 to pay the amount directly to the Complainant as the member’s PF account was closed. The Ex.B-2 is the letter issued by Opposite Party No.1 to Opposite Party No.2. The Opposite Party No.2 has received policy amount from Opposite Party No.1, vide Policy No.600472262 for sum assured of Rs.49,000/- under T&T 133-16 with risk commencing from 11/08/2000 and the said policy was assigned to the Commissioner, Regional Provident Fund, Barkatpura, Hyderabad. The Opposite Party No.2 issued the cheque on 09/08/2017 and the same was dispatched, but it had become stale and was not encashed. The Opposite Party No.2 submitted that the maturity claim amount was already made to Opposite Party No.1 and as such there is no liability on the part of the Opposite Party No.2. It is evident that the Complainant’s maturity amount was settled on 18/03/2004 and an amount of Rs.89,499/- was dispatched to Opposite Party No.2 on
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11/08/2017 and the said cheque was returned by Opposite Party No.1 on 08/12/2017 as it was time barred. The Complainant was waited for the release of the amounts from the Opposite Parties No.1 and 2 as there was delay in transaction of the amount and the cheque being time barred could not be paid to the Complainant in time. The Opposite Party No.1 finally credited the amount of Rs.1,01,922/- into the account of the Complainant through NEFT, vide Ex.B-3 Claim Status, after filing of the present complaint. The PF amount hard earned and saved money which could be utilized by the Complainant in his old age in dire need of money for his treatment and for his old age ailments, could not be served the purpose of the PF amounts, which were delayed by the Opposite Parties No.1 and 2 in settlements of the amounts to the Complainant in dire need of time. The Opposite Party No.1 could not settle the amounts immediately after the maturity period and the Opposite Party No.2 issued the cheque which was time barred as there was a delay. Although the Complainant received an amount of Rs.1,01,922/- after filing the present complaint through NEFT into his account on 24/06/2019, but there was a delay from August, 2015 to 2019. The delay was caused by the Opposite Parties No.1 and 2 in disbursing the PF amount to the Complainant. Therefore, there is deficiency in service on the part of the Opposite Parties No.1 and 2 in not refunding the PF amount to the Complainant in time and thus caused mental agony to the Complainant. Accordingly, the Point No.1 is answered in favour of the Complainant.
10. POINTS No.2 & 3:
The PF maturity amount was paid to the Complainant with interest, i.e. Rs.1,01,922/- and the same was credited into the account
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of the Complainant on 24/06/2019, but there was delay which caused mental agony to the Complainant. As such, the Opposite Parties No.1 and 2 are liable to pay the amount of Rs.10,000/- towards compensation for mental agony and Rs.2,000/- costs to the Complainant.
In the result, the complaint is allowed in part, directing the Opposite Parties No.1 and 2 to pay to the Complainant jointly and severally, a sum of Rs.10,000/- (Rupees Ten Thousand only) towards compensation for mental agony and Rs.2,000/- (Rupees Two Thousand only) towards costs, within one month from the date of receipt of this order, failing which the compensation amount shall carry interest @ 9% p.a. till the date of realization.
Dictated to Steno-Typist, transcribed by him, corrected and pronounced by us in the open Forum on this 6th day of February, 2020.
FEMALE MEMBER MALE MEMBER PRESIDENT
APPENDIX OF EVIDENCE
WITNESSES EXAMINED
For Complainant: For Opposite Parties:
Affidavit of the Complainant. Affidavit of Opposite Party No.1.
Affidavit of Opposite Party No.2.
EXHIBITS MARKED
For Complainant:
Ex.A-1: Dt.23/12/2015 Xerox copy of letter addressed by the
employer of the Complainant to the
Opposite Party No.1.
Ex.A-2: Dt.26/07/2016 Xerox copy of letter addressed by the
employer of the Complainant to the
Opposite Party No.1.
Ex.A-3 Dt.03/01/2017 Xerox copy of letter addressed by
Opposite Party No.1 to Opposite Party No.2
and copy to the Complainant.
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Ex.A-4 Dt.12/11/2018 O/c of legal notice issued by the counsel for
the Complainant to the Opposite Parties.
Ex.A-5 Dt.28/11/2018 Xerox copy of letter addressed by
Opposite Party No.1 to Opposite Party No.2
and copy to counsel for the Complainant.
Ex.A-6 Dt.11/12/2018 Reply Notice, issued by Opposite Party No.2
to the counsel for the Complainant.
For Opposite Party No.1:
Ex.B-1 Dt.03/01/2017 Attested copy of letter addressed by
Opposite Party No.1 to Opposite Party No.2
and copy to the Complainant.
Ex.B-2 Dt.28/11/2018 Attested copy of letter addressed by
Opposite Party No.1 to Opposite Party No.2
and copy to counsel for the Complainant.
Ex.B-3 Dt.27/06/2019 Attested copy of Claim Status.
For Opposite Party No.2:
Ex.B-4 Dt.25/04/2019 Attested copy of Status Report of Policy No.
600472262.
Ex.B-5 Dt.28/11/2018 Xerox copy of letter addressed by
Opposite Party No.1 to Opposite Party No.2
and copy to counsel for the Complainant.
Ex.B-6 Dt.11/12/2018 Xerox copy of Reply Notice, issued by
Opposite Party No.2 to the counsel for the
Complainant.
PRESIDENT
DISTRICT CONSUMER FORUM
NALGONDA
