Decided on May 25,2010

Yashpal Chhabra Appellant


- (1.)THIS appeal was filed after delay of 15 days. An application for condonation of delay has been filed. Reasons have been given in the application, which justify the delay. The application is supported by an affidavit. Accepted subject to all just exceptions and in the interest of justice the delay of 15 days in filing the appeal is condoned. Misc. Application stands disposed of. Main Case: Briefly stated, facts of the case are that the appellant was a holder of insurance policy number 161025940 for Rs. 1,00,000. The said insurance policy commenced on 28.4.1996 and since then, the appellant had regularly been making the payment of yearly premium of Rs. 6326. It was pleaded that in the year 2005, one instalment of premium was due on 28.4.2005 which was paid vide cheque number 167918 dated 11.3.2005 drawn on the bank of Punjab limited, Ludhiana. The said cheque was duly encashed and credited infavour of the respondents. The appellant also obtained a bank certificate dated 18.7.2006 which clearly verified that the amount of the aforesaid cheque was credited into the account of the respondents and it was cleared on 9.4.2005.
(2.)IT was further pleaded that when the next premium was due on 28.4.2006, the appellant visited the branch office of respondent No. 1 in the month of March, 2006 i.e. one month prior to the due date. The appellant came to know that the aforesaid policy had been lapsed due to non payment of the immediate previous premium. Thereafter the appellant submitted an application dated 28.6.2006 to respondent No. 1, but no response was received.
(3.)ALLEGING deficiency on the part of the respondents, the appellant filed a complaint against them in the learned District Consumer Disputes Redressal Forum, Ludhiana (in short "District Forum").
The respondent filed the written reply. It was admitted that the appellant had tendered the cheque number 167198 for Rs. 6,326 drawn on Centurion Bank in April 2005 which was credited to the account of respondent No. 1 on 9.4.2005. It was pleaded that inadvertently there was a bona fide mistake due to which the premium receipt was not issued and the amount was kept in extra credit item. However when the appellant visited the office of respondent No. 1 for depositing the premium due in April 2006, the said inadvertent mistake came to the notice of the official of respondent No. 1 and subsequently deposited the amount of Rs. 6,326 was deposited in the account of appellant on 17.9.2007. The appellant was also asked to deposit the further premium due in April 2006 and April 2007 and was also informed that the requirements for revival and late fee would be waved by respondent No. 1.

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