Haryana

Ambala

CC/447/2019

Jitender Gulati - Complainant(s)

Versus

United India Insurance Co Ltd - Opp.Party(s)

S.K. Mehta

05 Dec 2022

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, AMBALA.

Complaint case No.	:	447 of 2019
Date of Institution	:	20.12.2019
Date of decision	:	05.12.2022

 

Jitender Gulati son of Shri Milkh Raj Gulati, resident of House No.1659 ward No.4, Naddi Mohalla, Ambala city, Tehsil and district Ambala.

          ……. Complainant.

                                                Versus

United India Insurance companies Ltd, Micro office c/o Vikas Filling Station, Ambala Chandigarh Road, Mohali-140103, Punjab, (First Floor No.1, Ambala-Chandigarh Road, Lalru, Mohali, Punjab 140501.)

2nd Address:-

2nd Floor, Triloki Chambers, Opp. Municipal Corporation Kasera Bazar Road, Municipal Committee Road, Punjabi Mohalla, Sadar Bazar, Ambala Cantt, Haryana 133001.

                                                                                   ….…. Opposite Parties

Before:         Smt. Neena Sandhu, President.

                              Smt. Ruby Sharma, Member,

           Shri Vinod Kumar Sharma, Member.           

 

Present:       Shri S.K. Mehta, Advocate, counsel for the complainant.

                             Shri Mohinder Bindal, Advocate, counsel for the OP.

Order:        Smt. Neena Sandhu, President.

1.                Complainant has filed this complaint under Section 12 of the Consumer Protection Act, 1986 (hereinafter referred to as ‘the Act’) against the Opposite Party (hereinafter referred to as ‘OP’) praying for issuance of directions to it to pay an amount of Rs.1 lac to him as compensation in the interest of justice.

2.             Brief facts of the case are that the complainant being the owner of car bearing Registration No.HR01-AM-4792 got insured the same with the OP, vide Policy No.1101843117P111747707, valid for the period from 16.11.2017 to 15.11.2018. At the time of insurance, the complainant had issued a cheque of Rs.11,275/- dated 15.11.2017 in favour of  the OP. The said amount was transferred in the account of the OP. However, the OP without assigning any reason cancelled the policy of the complainant illegally and that too after receiving the amount. The complainant approached the OP in the matter, number of times but to no avail.  He also demanded the amount paid by him alongwith interest etc. but to no avail.  Legal notice dated 06.07.2019 served upon the OP in the matter also did not yield any result.   Hence this complaint.
3.           Upon notice, the OP appeared and filed written version and raised preliminary objections with regard to maintainability and jurisdiction etc.   On merits, it has been stated that the entire lapse in the involved transaction/misconception/delusion was a system failure on the part of the bank of the complainant and the OP and there was no fault or deficiency in service on the part of the OP. The complainant availed insurance policy for his car bearing registration no. HR- 01AM-4792 for the period from 16.11.2017 to 15.11.2018 from Micro office of the OP at Lalru and made the payment of premium amount through cheque no. 044357 dated 15.11.2017 drawn on The Postal & RMS Employees Co-operative Bank Ltd. However, when the said cheque was presented, the same was returned in original by the banker of the OP alongwith memo dated 14.12.2017 with remarks "The following cheque which was sent for collection on your behalf has been returned unpaid". Since the cheque given by the complainant was returned to the OP by his banker, uncashed, so as per law and terms of the insurance policy, the said insurance policy was cancelled being void abintio and the complainant was informed accordingly. The moment, the complainant pointed out the fact about debit of the cheque amount from the account of the complainants’ wife, an inquiry was immediately initiated and this technical mistake was detected to the effect that the payment of said cheque was not reflected in the system due to certain technical reasons of both the bankers, so the cheque was returned by the banker of the OP even though the amount was debited on 21.11.2017. This mistake happened only due to technical reasons and there was no intention or lapse on behalf of any body. OP has already instructed his banker to debit the said amount of Rs.11,275/- from the account of the OP and credit the said amount to the account of complainant, but in order to avoid any more delay in the redressal of the grievances of the complainant, a cheque of Rs.11,275/- is attached with the written version so that the same could be handed over to him. Rest of the averments of the complainant were denied by the OP No.1 and prayed for dismissal of the present complaint.
4.           Learned counsel for the complainant tendered affidavit of complainant as Annexure CW1/A alongwith documents as Annexure C-1 and C-4 and closed the evidence on behalf of the complainant. Learned counsel for the OP tendered affidavit of Tejinder Singh, Manager and Authorized Signatory, United India Insurance Company Ltd., Divisional Office, Ambala Cantt. as Annexure OP/A alongwith documents Annexure OP-1 to OP-5 and closed the evidence on behalf of OP.
5.           We have heard the learned counsel for the parties and carefully gone through the case file.
6.           Learned counsel for the complainant submitted that since the amount of  premium was deducted from his account towards the insurance obtained from the OP, as such, by not issuing the  insurance  policy and on the other hand cancelling the same, the OP is  deficient in providing service.
7.           On the other hand, learned counsel for the OP submitted that it was on account of technical reasons that though the amount of premium was credited to the account of the OP, yet, because the bank concerned issued voucher to the effect that the cheque amount of premium has been unpaid, as such, it was  under those circumstances that the policy in question was cancelled. He further submitted that in order to pay the amount to the complainant, the OP enclosed the cheque of Rs.11,272/- alongwith the written version filed by it, which was received by the complainant on 08.02.2021.
8.           It is significant to mention here that during pendency of this complaint, on 08.02.2021, the complainant has received the cheque placed on record by the OP, in the sum of Rs.11,275/- i.e. the amount paid by him towards the policy in question, which stood cancelled by the OP
9.           It may be stated here that it is coming out from  the statement of account, Annexure C-1 and also fairly admitted by the OP that on 22.11.2017, though the aforesaid cheque amount of Rs.11,275/- had been credited in its account towards the insurance policy purchased by the complainant, yet, on account of technical fault on the part of the banks concerned, the said credit of amount in the account of the OP could not be noticed, as a result whereof, return cheque memo dated 14.12.2017 Annexure OP-1 was prepared by the bank of the OP and the policy in question stood cancelled by the OP.
10.           As stated above, during pendency of this complaint, the complainant has accepted the cheque placed on record by the OP, in the sum of Rs.11,275/- i.e. the amount paid by the complainant vide cheque dated 15.11.2017 to the OP, towards the policy in question, which stood cancelled by the OP. This amount has been utilized by the OP for the period from 15.11.2017 till 07.02.2021, without providing any service to the complainant. Even the bank concerned, vide email dated 29.08.2019, Annexure OP-4 has asked the OP to refund the amount in question to the complainant but it failed to do so. Had the OP returned this amount, immediately, when it had cancelled the policy in question, the complainant would not have been forced to enter into this unnecessary litigation. Since the OP has refunded an amount of Rs.11,275/- during the pendency of complaint, therefore, we are of the view that, OP is not only liable to pay interest on the said amount for the period of default, but also liable to pay compensation to the complainant for mental agony, physical harassment caused to him and also for litigation expenses.
11.           In view of the aforesaid discussion, we hereby partly allow the present complaint and direct the OP, in the following manner:-

1. To pay interest @ 4% p.a. on the amount of Rs.11,275/- for the period from 15.11.2017 to 07.02.2021, to the complainant. 
2. To pay compensation to the tune of Rs.3000/- for causing mental agony, physical harassment and Rs.2000/- as cost of litigation to the complainant. 

                   The OP is further directed to comply with the aforesaid directions within the period of 45 days from the date of receipt of the certified copy of this order, failing which the OP shall pay interest @ 6% per annum on the awarded amount besides litigation costs, for the period of default. Certified copy of this order be supplied to the parties concerned free of costs as per rules.  File be annexed and consigned to the record room.

  Announced:- 05.12.2022

 

(Vinod Kumar Sharma)	(Ruby Sharma)	(Neena Sandhu)
Member	Member	President