PRATAP CHAND Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) -APPELLANT was the opposite party before the State Commission, where the respondent/complainant had filed a complaint alleging deficiency in service on the part of the appellant.

(2.) VERY briefly the facts of the case are that it was stated by the respondent/complainant that he had entered into an 'agreement' with the appellant for construction of a house on 2. 6. 1992 and in pursuance to which he paid Rs. 4,70,000 to the appellant but the construction collapsed on 8. 8. 1993 due to sub-standard material used and also due to poor supervision and management, resulting in heavy loss and mental harassment to the appellant/complainant. It is in these circumstances that a complaint was filed before the State Commission for refund of Rs. 4,70,000 along with interest @ 18% p. a. and Rs. 5,000 as compensation. The matter was contested by the appellant but the State Commission after hearing the parties, perusal of material on record, evidence as also the cross-examination of the parties hold the appellant to be deficient in rendering service and directed the appellant to pay Rs. 4,70,000 along with compensation of Rs. 1,00,000 for mental agony and other incidental expenditure incurred by him along with interest @ 15% p. a. from the date of the order. Cost of Rs. 1,000 was also awarded. Aggrieved by this order this appeal has been filed before us by the appellant/opposite party.

(3.) NOTICE was issued for today's date. There is a letter from appellant received by this Commission that considering his present financial and physical bad condition, he is unable to come over to Delhi in person or to appoint an Advocate in Delhi. Despite notice none appears on behalf of respondent, he is proceeded ex parte.