M/S. Yeses Infrastructure Pvt. Ltd vs Reliance General Insurance & 2 Ors

The present Appeal has been preferred against the order dated 26 th June, 2013 passed by the Andhra Pradesh State Consumer Disputes Redressal Commission at Hyderabad (hereinafter referred to "the State Commission") whereby the Complaint preferred by the Appellant herein has been allowed and the State Commission has directed the Respondent herein to pay a sum of Rs.23,38,391/- alongwith interest @ 9% p.a. from the date of filing of the Complaint till payment together with cost of Rs.5,000/-.

We have heard Mr. M. Hari Babu, learned Counsel for the Appellant and Mr. Rajeshwar Rao, learned counsel appearing for the Respondents and have perused the impugned order passed by the State Commission. The learned Counsel for the Appellant submitted that the Appellant is entitled for interest from the date of repudiation of the claim i.e. 28.01.2011 and not from the date of the Complaint and, therefore, the order of the State Commission be modified. The learned Counsel for the Respondent, however, submitted that the Respondents have paid the entire amount as directed by the State Commission in execution proceedings, which has been withdrawn by the Appellant and the Respondents cannot be saddled with further liability of payment of interest from the date of repudiation of the claim. It is not disputed that after the accident occurred on 3rd October, 2010, the Appellant had made a claim which was received under the policy No.1804702343000236. It was repudiated on the ground that the Respondents have not received the premium. Thereafter, the Appellant filed another claim with reference policy No. 1804702343001610 which was also repudiated on the ground that the claim was lodged allegedly after 110 days of the incident.

The State Commission had considered the material and evidence on record and had directed the Respondents to pay sum of Rs. 23,38,391/- alongwith interest @ 9% p.a. from the date of filing of the Complaint till payment together with cost of Rs.5,000/-.

From the aforementioned facts, we find that the Appellant did not immediately approach the State Commission under the provisions of Consumer Protection Act, 1986 seeking a direction for payment of the insured amount. However, it waited for eight months and approached the State Commission. In the peculiar facts and circumstances of the case, we are of the considered opinion that the State Commission was perfectly justified in law in directing the Respondents to pay interest from the date of filing of the Complaint till the date of actual payment. The Appellant is not entitled for interest from the date of repudiation till the date of payment.

The Appeal fails and is dismissed.