NEW INDIA ASSURANCE CO LTD Vs. PAL SINGH

JUDGEMENT

(1.) HEARD the Learned Counsel for the parties. In complaint No. 191 of 1995, the District Forum by its order dated 21st April, 1998, directed the Insurance Company to pay a sum of Rs.1,90,000.00 with interest @ 12% per annum from the date of the accident till the date of its payment. It also directed that in case the payment was not made within the aforesaid period, the rate of interest would be 18% per annum. Against that order, the Insurance Company preferred an appeal No. 1293 of 1998 (S/C) before the State Consumer Disputes Redressal Commission, Uttar Pradesh on 14th May, 1998. On the stay application filed by the Insurance Company in the context of that appeal, the State Commission by its order dated 24th August, 1998 directed the Insurance Company to deposit the entire amount awarded by the District Forum.

(2.) THE interim order is as under:

(3.) AGAINST that order the petitioner - Insurance Company preferred Revision Petition No. 68 of 2006. That Revision Petition was dismissed without verifying the records, by the State Commission by its order dated 28th February, 2007. Against that order, this Revision Petition is filed. Learned Counsel appearing on behalf of the Insurance Company submitted that the State Commission has passed the order without verifying the facts and hence it is, on the face of it, erroneous. He submitted that against the original order passed by the District Forum on 21st April, 1998, the Insurance Company preferred an appeal. In that appeal, the Insurance Company had filed application for interim relief; that interim relief was granted by the State Commission by its order dated 24th August, 1998; and the Insurance Company was directed to deposit the amount awarded by the District Forum. In compliance with that order, a sum of Rs.1,90,000.00 was deposited by way of FDR on 17th September, 1998. He, therefore, contended that there was no question of paying any interest after 17th September, 1998. He further submits that the directions to pay penal interest @ 18% would not survive in view of the stay order granted by the State Commission. He, therefore, contended that neither the District Forum nor the State Commission took into consideration the relevant facts and passed the impugned orders.