JUDGMENT

                                                              28.1.2010

Justice Pritam Pal, President

1.         The aforesaid two execution applications  are offshoots of   the order dated 29.1.2002 vide which two complaints bearing  complaint case NOs.25 of 2001 & 26 of 2001 were allowed by this State Commission.   Since, common questions of law and facts are involved in these applications, so both are being disposed of through common judgment.  

2.           The parties   hereinafter shall be referred to as per their ranking before the State Commission in original complaints.  

3.             Briefly stated the facts of the case are that the  complaint case bearing Nos.25 of 2001 filed by M/s Savikar Plyboards Limited and Complaint case  No.26 of 2001 filed by M/s Goel Exports  against the New India Assurance Company Limited were decided by the State Consumer Commission, U.T.Chandigarh  vide common order dated 29.1.2002  in the following terms ;

“The OP-Insurance company is directed to pay a sum of Rs.12,13,600/- with interest @ 12% p.a. thereon from the date the loss occurred till realization and a consolidated amount of Rs.20000/- towards mental agony to the complainant M/s Goel Exports within a period of one month from the date of communication of this order. So far as the complaint case No.25 of 2001 is concerned, the OP- Insurance co. is directed to pay Rs.9,74,448.30/- with interest @ 12% p.a. with thereon from the date the loss occurred till its realization and a consolidated sum of Rs.15000/- towards compensation and costs of litigation. ”

4.         Aggrieved against the said order, New India Assurance Co. went in appeal before the Hon’ble National Commission and First Appeal bearing Nos.75&76 of 2002 were dismissed vide common order dated 6.5.2004.

5.         During that interregnum period the complainant filed execution applications bearing Nos.7 & 8 of 2002 wherein OP insurance company deposited pay orders dated 14.6.2002 for Rs.12,45,688/- in the name of M/s Savikar Plyboards Ltd and Rs.15,58,712/- in the name of M/s Goel Exports.  The Hon’ble National Commission vide its interim order dated 9.10.2002 directed the pay orders to be converted into FDRs. The counsel for OP then placed on file FDRs for Rs.12,45,688/-  and Rs.15,58,712/- both dated 20.11.2002 respectively valid for six months. The Hon’ble National commission thereafter vide order dated 3.1.2003 modified its earlier order dated 9.10.2002 and issued direction to pay the FDR amount to the complainant on furnishing  bank guarantee by the complainant to the satisfaction of State Commission. The complainant then furnished bank guarantee and the FDRs of Rs.12,45,688/-  & Rs.15,58,712/- were released to the  respective complainants on 3.2.2003.

6.         In the Execution application No.7 of 2002 (M/s Savikar Plyboard Ltd) the calculation of amount given by the complainant  which was shown to be  due   is as under ;

a)Principal amount                                           Rs.9,74,448.00

           b)interest @ 12% from 1.5.2000 to 21.5.2004Rs. 4,74,773.00

           c)Compensation & costs                                  Rs.   15,000.00

                                                   Total  :                           Rs.    14,64,221.30

         Amount received in the shape of FDR                Rs.12,45,688.00

          Interest @5.75% for the period 20.11.2002      Rs.       83,657.00

          till 21.5.2004 given by the bank on FDR

            Balance recoverable till 21.5.2004                  Rs.1,34,876.30

In the Execution application No.8 of 2002 (M/s Goel Exports) the calculation of amount given by the complainant  which  was  shown to be due is as under ;

a)Principal amount                                           Rs.12,13,600.00

           b)interest @ 12% from 1.5.2000 to 21.5.2004 Rs.  6,03,288.00

           c)Compensation & costs                                  Rs.   20,000.00

                                                   Total  :                           Rs.    18,36,888.00

         Amount received in the shape of FDR                Rs.15,58,712.00

          Interest @5.75% for the period 20.11.2002      Rs.     1,04,193.00

          till 21.5.2004 given by the bank on FDR    

            Balance recoverable till 21.5.2004                  Rs.1,73,983.00

7.         However, the State Commission ultimately decided  both the   Execution applications vide  order dated 29.7.2004 by holding that the decree holders would be entitled to claim interest till 6.5.2004 on which date the First Appeal was finally decided  by the Hon’ble National Commission and the stay order stood vacated. So far as the claim of interest beyond 6.5.2004 is concerned, the same was not recoverable as the First Appeal stood decided on 6.5.2004 and stay order stood vacated.  Accordingly the State Commission  did not allow the interest from 6.5.2004 to 21.5.2004 and directed the OP to pay Rs.131,932.73 as interest upto 6.5.2004 in M/s Savikar Plyboard Ltd.’s case and Rs.1,70,300/- in Goel Traders’ case.

8.         The OP  then went in revision petition before the Hon’ble National Commission  against the  order dated 29.7.2004 and the revision petitions bearing NO.1906 & 1907 of 2004 were dismissed vide order dated 8.9.2005 by upholding the order of State Commission that the decree holders would be entitled to claim interest till 6.5.2004.

9.         The OP then preferred SLPs  to Appeals ( C ) bearing Nos.25719 & 25720/2005  and the Hon’ble Supreme court vide order dated 30.3.2009  dismissed  the special leave petitions by upholding the orders of Fora below.

10.       Now the complainants in these execution applications claimed the balance unpaid amounts and interest thereon from 21.5.2004 to 30.4.2009. The only point of arguments raised on behalf of complainants is that  the unpaid balance  amounts  ( being interest @ 6.25 % ) should have been paid in the year 2004 when the interest on FDRs @ 5.75% was paid but these amounts   have been paid now in the year 2009.  Whereas this point has been repelled by the learned counsel for   OP and stated that   the unpaid  balance amounts of Rs.1,31,932.73 and Rs.1,70,300/-  have been paid to the respective complainants  vide cheques dated 13.8.2009  as per orders of the State Commission dated  29.7.2004 after the decision of Hon’ble Supreme court and now  nothing is due to be paid to any of the complainants.  

11.       We have given our thoughtful consideration to the entire matter and find that according  to the  factual and admitted  position of the case   the order dated 29.7.2004 passed by this State Commission in execution applications No.7 & 8 of 2002 was stayed by the Hon’ble National Commission vide order dated 27.9.2004 passed  in the revision petitions of OP. Ultimately the revision petitions bearing NOs.1906 & 1907 of 2004  filed by OP were dismissed by the Hon’ble National Commission vide order dated 8.9.2005. The  OP then preferred SLPs before the Hon’ble Supreme court and the Hon’ble Apex court vide its interim order dated 5.1.2006 stayed the order of National Commission dated 8.9.2005.  The SLPs bearing NOs.25719 & 25720 of 2005  were dismissed vide order dated 30.3.2009. Thus, the order of State Commission dated 29.7.2004 remained stayed and ultimately  attained the finality   according to which complainant was entitled to recover interest uptill 6.5.2004.  The insurance company has now paid the balance unpaid interest  amounts on 20.8.2009 as per order of the State Commission dated 29.7.2004.

12.       Now it is apparent  that the Hon’ble Apex court had dismissed the Special Leave Petitions on 30.3.2009  , certified copy whereof were issued on 13.4.2009. Further it is also evident that the payment of  unpaid balance interest  amounts  i.e. Rs.1,31,933/- and Rs.1,70,300/- was    made   on 20.8.2009  only on filing of present execution applications by the complainants. In this view of the matter, we find that there is delay of about four months in making aforesaid payments of interest  by OP to the complainants. So, we feel  in the given facts and circumstances and present day of interest on various schemes by nationalized banks that they (complainants) are also entitled to interest @ 6% p.a. on the aforesaid  amounts for the delayed period of 4 months. We order accordingly.  OP shall pay interest @ 6% p.a. for four months  to the complainants on the amount of   Rs.1,31,933/- and Rs.1,70,300/-  respectively  within a period of one month from the receipt of certified copy of the order.

              Certified copies of this order be communicated to the parties, free of charge. The file be consigned to records.