MOTI LAL SHARMA Vs. LIC OF INDIA

JUDGEMENT

(1.) Moti Lal Sharma, hereinafter referred to as the complainant, obtained Jeevan Dhara Policy from LIC in his own name in the year 1989. One of the special features of the said policy was that the amount paid was exempted from income tax under Sec.80, CCA. In the Finance Bill for the year 1992-93, the Government of India decided not to treat the surrender value under the Jeevan Dhara Policy as income receipt during the year 1992-93, in case the policy was surrendered to the respondent Corporation and payment was made by the respondent upto 30th September, 1992 only. The complainant surrendered the said policy on 14.8.92 along with the prescribed form and completed the necessary formalities. The complainant paid several visits to the office of opposite party, but to no purpose. He also wrote to the opposite party who got a reply filed on 13.10.92. The reply was to the effect that surrender value of the policy amounting to Rs.1,36,548/had been sent by LIC Branch Unit No.311, Rajendra Place, New Delhi to the complainant by their Cheque No.989887 dated 8.9.92 drawn on United Commercial Bank, New Delhi under registered cover No.3594 dated 25.9.92. As the complainant failed to receive any such registered envelope, he made enquiries from the Post Office and apprised LIC regarding the non-receipt of the cheque. As per the advice of the LIC, the complainant submitted an application on 15.10.92 alongwith indemnity bond for issuing a duplicate cheque. After waiting for another one month, the complainant wrote to the opposite parties. Having failed to receive the amount, the complainant filed this complaint for payment of the said surrender value alongwith @ 18% interest and Rs.50,000/as damages for mental pain and sufferings.

(2.) The plea of LIC in the written statement was that it had despatched its application by sending a crossed cheque in favour of the complainant by the well recognised mode of registered post through Post Office Sat Nagar. It was further pleaded that the enquiries were made from the Postal Authorities as also the drawee Bank. The Postal Authorities were enquiring into the matter and the drawee Bank informed that the amount of the cheque had been collected through Oriental Bank of Commerce, Ashok Vihar Wazir Pur, Delhi, by some person by fraudulently opening an account in the name of Moti Lal Sharma and the Oriental Bank of Commerce had lodged First Information Report with the police and further action according to law was being taken in the matter. According to the facts, which came to the light, it appears that some one opened an account in Oriental Bank of Commerce, Wazir Pur on 19.9.92 by depositing Rs.300/-. The cheque drawn in favour of Moti Lal Sharma was deposited in that account. The cheque was collected on 3.10.92 and the amount withdrawn from that account on 7.10.92 leaving a balance of only Rs.848/-.

(3.) On the request of the complainant, the Oriental Bank of Commerce was also impleaded and written version has been filed on its behalf. It has been stated that account was opened in the name of Moti Lal Sharma after he had been introduced by one Ashok Kumar Gupta who was already the customer of the Bank in accordance with the relevant rules. The amount of the cheque was collected bona fide and the amount withdrawn by him from the account in normal course. It was, therefore, pleaded that the Bank was not liable for any alleged deficiency. It was also pleaded that there was no privity of contract between the complainant and the Oriental Bank of Commerce and the present complaint was not maintainable against the Bank. The parties have placed on record copies of various documents including the correspondence, copy of the F. I. R. and Affidavits. We have heard the parties and have perused the records.