ORDER

(Passed on  05/02/2020)

PER SHRI.ATUL D.ALSI, PRESIDENT.

The complainant has filed this complaint U/s 12 of the Consumer

Protection Act,1986 alleging non disbursement of insurance claim of Rs.5,68,000/- and thereby claiming the same amount alongwith interest @12% p.a. and further claiming compensation of Rs.50,000/- towards mental torture and Rs.30,000/- towards cost of proceeding.

2.       The facts giving rise to this petition in short, are that the Complainant Shri.Jaiprakash Singh S/o Rajbali Singh is the Proprietor of M/s A.J. Construction Company and he had insured all the skilled and unskilled labours working in the said company with the OP Insurance company vide policy No.2302022715 P-106587280 for the period from 10/9/2015 to 9/9/2016 against accidental death during the course of employment.

3.       On 9/4/2016, one of the workers named Bhaskar Karpenwar died in a Motor Accident  during the course of his employment.  The complainant on his own, paid an amount of Rs.5,68,000/- to the legal heirs of the deceased worker as per the schedule under Workmen Compensation Act. The complainant filed a claim under the insurance policy with the OP Insurance company, however, the same was repudiated by it. Hence the complainant filed a Consumer complaint against the OP vide case No.131/2016 which came to be decided by the Forum with a direction to the complainant to submit requisite documents to the OP and the OP too was directed to decide the claim within 90 days from receipt thereof.  Accordingly, the complainant submitted all the documents called for by the OP, however, the OP did not pay the entire sum of Rs.5,68,000/- under the insurance claim, but deposited only Rs.5,00,000/- in the office of the Forum and intimated the complainant that its liability is restricted to Rs.5 lac only as per order of Hon’ble Commissioner in WC No.04/2016 passed under E.C.Act.  However, the complainant had bonafidely calculated the amount of compensation at Rs.10,68,000/- considering the age and per month salary  of the deceased worker as per the schedule under E.C.Act and has also already paid Rs.5,68,000/- to the legal heirs of the deceased in cash and further Rs.5 lac in the court. Hence the complainant is entitled to reimbursement of balance amount of Rs.5,68,000/-by way of insurance claim from the OP. However, the OP denied to pay the claim of balance amount of compensation vide its communication dated 30/11/2018. Non disbursement of the said amount by the OP amounts to deficiency in service and hence the complainant has filed this complaint.

4.       The complaint is admitted and notice was served on the OP. The OP filed its reply and thereby denied allegations against it and submitted that the OP has already deposited Rs.5 lac i.e. the amount of compensation determined by the Hon’ble Labour Commissioner /Labour Court with the office of this Forum as full and final settlement of the insurance claim of the complainant and the said amount has been duly received by the complainant. Hence there is no merit in the petition and it deserves to be dismissed. Further, the Consumer Fora has no jurisdiction to entertain this petition as the Forum is not an appellate authority of the Labour Commissioner/Labour  Court who has already determined the quantum of compensation in this case. Hence for these reasons, the petition deserves to be dismissed with cost.

5.       Counsel for the complainant argued that the OP insurance company only paid Rs.5 lac towards the insurance claim however, it failed to reimburse the balance amount of compensation of Rs.5,68,000/- already paid by the complainant to the heirs of the deceased labour as per schedule of Workmen Compensation Act. Hence denial to honour the entire claim amounts to deficiency in service on the part of OP.  Therefore the petition may be allowed as prayed. 

6.         Counsel for the OPs argued that the Forum has no jurisdiction to decide the case as the quantum of compensation to be granted to the labour has already been determined by the Labour Commissioner/Labour Court, Chandrapur under Workmen Compensation Act and the Forum has no power to sit in appeal on the said order and interfere with the quantum of compensation decided therein.  The amount of compensation of Rs.5 lac arrived at by the Labour Commissioner/Court vide its order, has already been deposited by the OP with the office of this Forum and as such there is no deficiency in service on its part and the petition deserves to be dismissed.

7. We have gone through the complaint, written version filed by OP, affidavit, documents and WNA filed by the parties. We have also heard the oral arguments advanced by parties.

                    Points                                                                                     Finding

1. Whether  the Forum has jurisdiction to entertain the

      complaint ?                                                                                      No

2.  What order ?                                                                  As per final order..

As to issue No.1

8.      The OP has challenged the jurisdiction of this Forum contending that the quantum of compensation to be granted to the heirs of the deceased labour of complainant company has already been decided and quantified at Rs.5 lac only by the appropriate authority i.e. the Labour Commissioner/Labour Court, Chandrapur vide its order passed in WCA/4/2016 under Workmen Compensation Act. The OP Insurance company, has also complied the said order by depositing the said amount determined by the Labour Commissioner/Labour Court in the office of this Forum. In such circumstances,  the Forum has no power to sit in appeal on the said order and interfere with the quantum of compensation decided therein. We are in agreement with the said contention of the OP.  If the complainant feels aggrieved by the said order of Labour Commissioner/Labour Court, it should have approached the appropriate appellate authority or the Hon’ble High Court in its writ jurisdiction. However, the complainant unnecessarily preferred to agitate his grievance before this Forum and as such has indulged into misuse of process of law.   Hence the complainant is liable to pay cost of Rs.10,000/- U/s 26 of the Consumer Protection Act and deposit the same in the legal aid fund of this Forum, for filing false and vexatious complaint and unnecessarily wasting the time of this Fora.

As to issue No.2

9.          In view of our observations as above, we pass the following order..

Final order

1. The Complaint is dismissed.

2.  The complainant shall pay a cost of Rs.10,000/- U/s 26 of the Consumer Protection Act and deposit the same in the legal aid fund of this Forum, for filing false and vexatious complaint.

3.   Copy of the order be furnished to both the parties free of cost.

(Smt.Kalpana Jangade (Kute)  (Smt.Kirti Vaidya (Gadgil)     (Shri.Atul D.Alsi)

               Member                                 Member                                    President