BASANT KUMAR Vs. UNITED INDIA INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) The question for consideration in the instant writ petition is whether after availing the remedy available under the Consumer Protection Act, 1986 and having obtained an order in his favour granting compensation, petitioner can have recourse to proceeding for arbitration as per arbitration clause in agreement, being dissatisfied with the amount granted by the District Consumer Forum.

(2.) Petitioner owns Mahendra Jeep 1995 model which is insured with the respondent/United Insurance Company Ltd.; claim was lodged by the petitioner with respect to the damage caused to the Jeep in an accident on 4-1-99, the surveyor assessed the net loss of Rs. 12,060/-; petitioner claimed the damage to the extent of Rs. 67,764/-. Complaint was filed before the District Consumer Forum which was resisted by the Insurance Company; the District Forum after considering the material on record and the fact that the chassis was not in a good condition which was the cause of the accident, hence the District Forum ordered to pay the labour charge of replacement of chassis of Rs. 12,060/- and cost of new chassis of Rs. 28,440/-, in all Rs. 40,500/- with interest on the amount of Rs. 28,440/- at the rate of 12% p.a. from 18-5-99 and Rs. 1,000/- as costs of the proceedings.

(3.) An objection was raised by the Insurance Company that appropriate remedy for the complaint is to raise the dispute for adjudication of the Arbitrator in accordance with the terms and conditions of the policy. However, the Insurance Company deposited the amount as ordered by the District Consumer Forum. On reappraisal of evidence, the M. P. State Consumer Disputes Redressal Commission has come to the conclusion as per Order P/8 dated 19-4-2001 that the order passed by the District Forum does not call for any interference nor the enhancement of the amount is required. The direction was issued to deposit the interest as ordered by the District Forum.