Case: United India Insurance Vs. Ajmer Singh Cotton &amp; General Mills

4. In Civil Appeal No. 535 of 1994 the respondent No. 1 had procured two policies Nos. 201202-11-43-11-01234-90 from the appellant-insurance company. Similarly in Civil Appeal No. 723 of 1994 respondent No. 1 had procured two insurance covers operative from 20th October, 1989 to 19th June, 1990 to the extent of Rs. 1,00,000/- and from 3rd April 1990 to 29th June, 1990 to the extent of Rs. 10,00,000/- respectively. Respondent No. 1 had also procured insurance cover to the tune of Rs. 27 lakhs from respondents 2 to 4. The respondent suffered losses on account of fire regarding which the surveyors are appointed and upon submission of their reports the payments were made which were accepted by the insured with declaration of receipt of the "sum in full and final discharge of claims upon them." After the payments were made the respondents filed complaint petitions before the State Consumer Disputes Redressal Commission Punjab at Chandigarh claiming inter alia interest at the rate of 18 per cent per annum against the appellant. The State Commission dismissed the claims but the National Consumer Disputes Redressal Commission accepted the appeal of the respondent No. 1 and directed the appellant to pay the interest at the rate of 18 per cent.5. The facts in Civil Appeal No. 534 of 1994 are almost identical for determining the controversy and deciding the question of law noted hereinabove.

Reasoning: 7. In the instant cases the discharge vouchers were admittedly executed voluntarily and the complainants had not alleged their execution under fraud, undue influence, mis-representation or the like. In the absence of pleadings and evidence the State Commission was justified in dismissing their complaints. The National Commission however granted relief solely on the ground of delay in the settlement of claim under the policies. The mere delay of a couple of months would not have authorised the National Commission to grant relief particularly when the insurer had not complained of such a delay at the time of acceptance of the insurance amount under the policy. We are not satisfied with the reasoning of the National Commission and are of the view that the State Commission was justified in dismissing the complaints though on different reasonings. The observations of the State Commission in Jivajeerao Cotton Mills Ltd. v. New India Assurance Co. Ltd., Original Petition No. 52 of 1991, decided on November 28, 1991 shall always be construed in the light of our findings in this judgment and the mere receipt of the amount without any protest would not always debar the claimant from filing the complaint.