BAM DEV Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) The complainant has filed a complaint under Sec.17 read with Sec.12 of the Consumer Protection Act, 1986 (for short 'the Acf) against the opposite party claiming Rs.6,35,000/- alongwith interest @ 20% p. a. from the date of incident till payment as detailed in paragraphs 7 and 9 of the complaint.

(2.) The issue herein lies in a narrow compass and the relevant facts are not in serious dispute. The complainant got his truck No. HIU-4588, Model 1987 comprehensively insured with the United India Insurance Co. Ltd. , Nangal Branch {for short 'the Insurance Company') for Rs.3 lacs for the period commencing from 19.8.1990 to 18.8.1991 and according to him one Ramji Das of Nangal Town had paid the instalment premium of Rs.7,861/- on his behalf by cheque, which was got encashed by the Insurance Company and the policy of insurance was accordingly issued to him. The complainant's case is that on 7.10.1990 at about 9.15 p. m. , his truck being driven by his driver Sucha Singh, was going from Amritsar to Nangal and on its way near Bhatta, some miscreants stopped his truck. It is alleged that both the driver and the cleaner of the truck of the complainant were tied up with a tree by those miscreants and thereafter his truck was driven away towards Garhshanker. It is stated that Sucha Singh driver lodged the FIR at Police Station Garhshanker on 8.10.1990 and on the same day, the Insurance Company was intimated about the said incident by the complainant. According to the complainant, the Insurance Company appointed a surveyor, who recommended the payment of Rs.2,88,500/- for the loss suffered by him. It is alleged that the Insurance Company took its time to investigate the matter. Having failed to receive any relief on making representations to the Insurance Company, the present complaint was preferred to this Commission.

(3.) In the reply filed on behalf of the opposite party seven preliminary objections were raised, which, however, were not seriously pressed at the threshold. On merits, the firm plea of the opposite party was that the instalment premium of Rs.7,861 /- against the said policy was paid by one Ramji Das on behalf of the complainant by a cheque dated 17.8.1990 and the receipt dated 20.8.1990 (Annex. R-l) was issued by the Insurance Company in thisregard. It was averred that the cheque was forwarded to Behdala Branch of the Punjab National Bank on 22.8.1990 and the same was dishonoured by the said Bank on 25.9.1990 for lack of funds and that ultimately the cheque in question was encashed on 8.10.1990 i. e. one day after the alleged occurrence on 7.10.1990. It was the firm case of the opposite party that since the premium amount of Rs.7,861/- could be realised by the Insurance Company on 16.10.1990, the contract stood void abinitio by virtue of the terms and conditions of the receipt (Annex. R-l) and also as per provisions of Sec.64-VB of the Insurance Act and that there was no valid contract on 7.10.1990, the alleged day of occurrence and that the complainant had no cause of action and the present complaint was totally misconceived. In the replication filed by the complainant, all the allegations were reiterated by him.