DAWOOD UMAR TAJ Vs. ORIENTAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) THIS is an application under sections 25 and 27 of the Consumer Protection Act for the execution of the order passed by this Commission on 17-1-99 in the Original Complaints Nos. 337 to 394/92 and C. No. 631 to 653/92. The respondent No. 1 Oriental Insurance Co. Ltd. preferred its first Appeal No. 185 to 265/94 and obtained a stay order from the National Commission on 29-3-94. The National Commission was pleased to stay the enforcement of the order passed by this Commission on 17-1-94 only in respect of half of the amount which is directed to be paid to the respective claimants under the impugned order. The respondent Oriental Insurance Co. was directed to deposit the amount with the State Commission which in turn was directed to deposit the same with the respondent No. 2 Mahad Co-operative Urban Bank with a specific direction to distribute the said amount equally amongst 81 claimants to enable them to meet the expenses to be incurred by them in fighting out this case before the National Commission. The National Commission passed the final order on 19-11-98 and confirmed the order passed by this Commission on 17-1-94, but apportioned the liability on 50-50 basis between the Oriental Insurance Co. Ltd. and the Mahad Urban Co-operative Bank Ltd. According to the stay order passed by the National Commission on 29-3-94, the respondent No. 1/oriental Insurance Company has paid the amount and has been duly distributed amongst 81 claimants as per its direction.

(2.) NOW both the Oriental Insurance Co. Ltd. and the Mahad Co-operative Urban Bank have filed S. L. P. before the Supreme Court. The Supreme Court has granted stay to the execution of the order in respect of the liability fixed against respondent No. 2 Bank, no stay has been granted by the Supreme Court in respect of the respondent No. 1 Oriental Insurance Co. Ltd.

(3.) THE applicant Dawood Uma Taj and 80 others have approached this Commission for directing the respondent No. 1 Insurance Company to pay an amount of Rs. 51,06,676. 68 ps. towards the difference in the payment payable by the Insurance Company from 28-6-90 till the date of filing this petition i. e. 14-5-99. The petitioners have submitted that the liability was not at all apportioned in March, 94 when the National Commission granted the stay. The National Commission wanted to give immediate relief to the Fishermen and, therefore, ordered the respondent Oriental Insurance Co. Ltd. to pay half of the amount ordered by the State Commission. Therefore, from 29-3-94 till 19-11-98, the liability of the respondent No. 1 Oriental Insurance Company continued. They ordered to deposit 50% amount was a condition precedent to the grant of the stay and it was in no way an apportionment of the liability between the respondents. Shri Mehere, the learned Counsel for the applicants has in his notes of arguments forcefully submitted that the liability of the Insurance Company continued till the date of final order of 19-11-98 and that there was no waiver of the liability between the date of the stay order and the date of final order. There is a substance in his argument that the payment of Rs. 1 Crore made by the Insurance Company on 7-6-94 only reduced the liability and not extinguished the same.