GEETA INDUSTRIES vs United India Insurance Co. Ltd.

APPLICATION herein has been presented by the complainants in the complaint herein for the relief as mentioned in the application pending final adjudication and as such disposal of the same.

WE consider it unnecessary to have detailed advertance to the factual aspects as involved in the matter herein or for that matter, merits or demerits of the issues arisen thereunder. Little background of presentation of the application herein would require advertance.

Complainant has filed this complaint claiming sum of Rs. 14,27,000/- against the respondent/O.P. being stock of trade articles of the complainant with interest stated to be gutted in fire and in respect of which insurance coverage was obtained from the O.P./Insurance Company.

IT is noticed that the Insurance Co. thereafter engaged the services of their Surveyor, who also proceeded to investigate and on spot inspection, etc. prepared and submitted a report to the Insurance Company recommending sum of Rs. 7,55,163/- towards full and final settlement of the claim of the complainant. It appears that the Insurance Company after receipt of the report of the Surveyor thought it fit to accept the recommendations as made by the Surveyor and on the basis thereof made an offer to the complainants offering sum of Rs. 7,55,163/- specifically qualifying "Towards full and final settlement of the claim" made by the complainants.

AS this was not found acceptable to the complainants, that they have approached this Commission alleging deficiency, etc. Insurance Company has filed its written statement which is on affidavit affirmed on 3.3.2004 and in para 19 it has repeated and reiterated of the offer which is made for sum of Rs. 7,55,163/-. In view of this complainants herein have made the application that sum of Rs. 7,55,163/- as offered by the Insurance Company/O.P. be released and ordered to be paid to it on the basis that same is an admitted claim and for the consideration of the balance amount of the claim, same be done at the stage of final adjudication of the complaint.

INSURANCE Company has filed the affidavit in reply and has raised several contentions opposing the application. The trend and tenor of the submissions made in the reply tends to suggest that the offer which has been made is on the basis of the report of the Surveyor, which the INSURANCE Company found it to be acceptable and proper and that if at all the amount is to be released and ordered to be paid to the complainant, the same should be on the basis as they had offered i.e., to say being and towards full and final settlement of the claim of the complainant and not otherwise.

MR. Baphna, learned Counsel for the complainant has drawn our attention to the order dated 15.10.2003 passed by the National Commission in Original Petition No. 142/02 on its file, wherein the complainant in the said petition moved the application in the said complaint before the National Commission requesting for release of the amount which the Insurance Company had agreed to pay against the claim made by the complainants therein to which the Insurance Company opposed as is the case herein and National Commission after rejecting the opposite stand as taken by the Insurance Company while allowing request of the complainant has observed as under, which we quote: "We earlier also had occasion to take a decision in such type of submissions of the Insurance Company and we have directed that Insurance Company pay the admitted amount to the complainant without insisting on getting full and final settlement receipt for the amount due to the complainant as the balance amount could be decided during the course of the proceedings. This type of stand by the Insurance Company should not be used as an oppressive act to deny the insured of whatever amount the Insurance Company is not an oppressive act. After the amendment to the Consumer Protection Act, 1986 since15.3.2003 we have now powers to pass interim orders. In the circumstances, we direct that without prejudice to the rights and contentions of the parties, the Insurance Company shall pay Rs. 25 lakhs to the complainant within four weeks from today."

Mr. Venkatachalam, learned Counsel for the Insurance Company tried to distinguish the facts in the matter herein saying that in the case of M/s. The Computer People and Another v. New India Assurance Co. Ltd., before the National Commission, there were as many as 3 Surveyors engaged by the Insurance Company, who had made recommendation for payments to the complainants thereunder that is to the insurer for different amounts.

We wish to state that in our considered view, the issue involved in the matter herein is squarely covered under the judgment of the National Commission referred to herein above.

WE wish to state and elaborate that the underlined principles, which persuade us to grant reliefs to the complainants are based on judicial discretion and as matter of fair play as well. These principles are envisaged under Order 12 Rule 6 of the Code of Civil Procedure. WE are conscious of the fact that the said provisions of C.P.C. are not made applicable under Consumer Protection Act, 1986 to consumer disputes. However, the general principle underlying in the said provisions of C.P.C., if found beneficial and advantageous to the consumer-complainant in the consumer disputes, can be extended and applied to give relief to the consumer which will be in consonance with main objects of the Statute, viz., Consumer Protection Act, 1986. In this respect, reference needs to be made to the recent amendment to Consumer Protection Act, 1986 (Amendments of 2002) introducing Section (3B) in Section 13 of the said Act, conferring power to Consumer Fora to grant interim order, "if it appears to be necessary" and "just and proper in the facts and circumstances of the case". WE are of the view that facts and circumstances in the case herein, satisfy the said test for grant of relief to the complainant to order part of the claim of the complaint, which is admitted, more or less by the O.P. We may mention yet another angle in this regard. We have herein above clarified and made it distinctly clear to the parties herein i.e., to both the parties, that interim order being passed, would be subject to the final decision in the complaint, which would imply, that, in the event final decision goes adverse to the complainants, the Forum is, under Section 27(i) of the Consumer Protection Act, 1986, is empowered to pass appropriate order, in the case herein, refund of the amount to be paid as per our interim order, against the complaint as well and as such are adequate in built safeguards have been provided in the Statute itself.

THAT being so, we do not find any merits in the contentions raised by and on behalf of the Insurance Company in acceding to the request as made by the complainants in the application herein. However, we wish to clarify that order of release of the amount shall be subject to the final outcome of the complaint on merits and we are putting both the parties on clear notice thereof. ORDER 1. Application is allowed. 2. O.Ps./Insurance Company are ordered and directed to release sum of Rs. 7,55,163/- on the basis of offer as they have made to the complainants. 3. It is clarified that the amount ordered is on the basis as has been indicated in the body of the judgment herein and shall be subject to the final outcome in the complaint. 4. Insurance Company/respondent/O.Ps. shall release the amount within a period of 6 weeks from today i.e., on or before 12.5.2004. 5. Application herein stands disposed of. 6. No order as to costs. 7. Copies of the order herein to be furnished to the parties.

Application allowed.