HARISH CHANDRA PANDE Vs. UNIT TRUST OF INDIA

JUDGEMENT

(1.) Complainant is the petitioner before us, petitioner-complainant applied to the respondent-Unit Trust of India for medical benefit cover under the Scheme, Senior Citizens Unit Plan floated by the respondent. With his application complainant sent a cheque for Rs. 32,000 which was encashed by the respondent. However, on 16.11.1994 the amount was returned along with application of the petitioner stating that the amount was not sufficient.

(2.) Complaint was filed by the petitioner claiming interest for a period of six months @ 14% on the amount of Rs. 32,000. Petitioner also claimed compensation for mental tension and inconvenience caused amounting to Rs. 20,000. District Forum where the complaint was filed held that there was deficiency in service inasmuch as the amount of Rs. 32,000 was kept by the respondent and it was not immediately returned when it was found that the amount was not sufficient for the complainant to be covered under the scheme. District Forum, therefore, directed payment of interest @ 11% per annum on the amount of Rs. 32,000 for a period of six months. It also awarded Rs. 1,000 as compensation for mental tension and inconvenience caused to the petitioner.

(3.) Petitioner then filed appeal before the State Commission against the order of the District Forum. Two members Bench of the State Commission heard the appeal. While the President dismissed the appeal, it was allowed by the other member who increased the rate of interest to 12% and compensation Rs. 2 lakh from Rs. 1,000. Since there was difference of opinion, matter was referred to the third member. She accepted the appeal to the extent that the compensation was increased to Rs. 20,000. The net result was that the complaint was allowed with interest @ 11% on the amount of Rs. 32,000 for six months and a sum of Rs. 20,000 as compensation.