THUMBA YELLAIAH Vs. SUPERINTENDENT OF POLICE

JUDGEMENT

(1.) THIS Revision Petition is directed against the Order dated 9th August, 1995 of the Andhra Pradesh State Consumer Disputes Redressal Commission on appeals filed by the Opposite Party No. 3 (The Divisional Manager of L.I.C.) and the Opposite Party No. 2 (The Superintendent of Police, Karimnagar) in Complaint No. 952/93 before the District Forum, Karim Nagar. Facts of the case are as follows : The Complainants are the parents of one Thumbs Srinivas, who was a Police Constable under the control of the OP No. 2. He obtained a Jeevan Mitra Policy with triple accident benefit for a sum of Rs. 50,000/- under the Salary Savings Scheme for a period of 25 years commencing from 26th October, 1991 and an amount of Rs. 1,50,000/- was payable under the said policy in case of death of the policy holder in an accident. OP No. 2 being the employer of the deceased was reported to have been authorised by the said Srinivas to deduct monthly premium and remit the same to OP No. 3-Insurance Company. But no deduction of the monthly premium was made from December, 1991. The policy holder (Srinivas) while proceeding to Nizamabad on official duty paid an amount of Rs. 1,566/- towards the arrears of premium due from December, 1991 to August, 1992 to the Sub-Inspector concerned on 28th August, 1992 for being remitted to OP No. 2. On 9th September, 1992 at 11.15 a.m., the said Srinivas died in a road accident while proceeding towards Nizamabad along with some other constables on official duty. The Complainants, being the parents of the deceased, lodged a claim for payment of the policy amount of Rs. 1,50,000/- which, however, did not elicit any response. Hence, the filed a complaint before the District Forum, Karimnagar claiming an amount of Rs. 1,50,000/- and Rs. 100/- towards legal notice charges and costs agains the District Collector (O.P. No. 1), Superintendent of Police (O.P. No. 2) and Divisional Manager, Life Insurance Corporation of India, Hanamkonda (OP No. 3).

(2.) THE District Forum came to the conclusion that OP No. 2 being the employer of the deceased failed to deduct the monthly premium from the salary and remit the same to OP No. 3 though authorised by the deceased to do so that OP No. 3 failed to inform either OP No. 2 or the policy holder about the arrears of premium amounts and that, therefore, both OP No. 2 and OP No. 3 are liable to pay the policy amount. Accordingly, it directed OP Nos. 2 and 3 to pay jointly and severally a sum of Rs. 1,50,000/- to me Complainants together with interest at 12% per annum from 9th September, 1992 till the date of payment and costs of Rs. 500/- and dismissed the complaint against OP No. 1.

(3.) IN the Revision Petition against this Order of State Commission filed by Complainants before us, the main contention raised is that the LIC (Respondent No. 2) has denied payment of the insurance amount only because of the default allegedly committed by the Office of the Respondent No. 1 in not carrying out its obligations under an arrangement for months deduction of premium from the salary of the deceased and remittance of the same to the LIC. We have gone through the records and heard the counsel for the parties. When the Revision Petition was taken up for bearing on 4th October, 1996, Respondent No. 1 was neither present nor represented by a counsel. We directed Respondent No. 1 to furnish all relevant information and make arrangements to be present himself in person or through counsel at the final hearing of the case. Counsel appearing for the LIC of India also undertook to file an affidavit furnishing more information in the matter. The LIC (Respondent No. 2) produced a copy of their letter to Respondent No. 1 requesting deduction of monthly premium from the salary of the deceased. When the Revision Petition came up for final hearing on 12th December, 1996, counsel for Respondent No. 1 requested for an adjournment to enable him to file counter affidavit to that filed by Respondent No. 2. In their counter affidavit, Respondent No. 1 observed, inter alia as follows :