HARISH CHADHA Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) IN revision petition No. 2525 of 2006, the petitioner/ complainant impugns the order dated 07. 08. 2006 of the State Consumer Disputes Redressal Commission, Delhi (hereafter, State Commission) in complaint case no. 153 of 1998. This order of the State Commissions is based on an application dated 02. 07. 2005 (for some reason, numbered in the State Commissions order as EX 153 of 1998) of the complainant. In this application, the complainant claimed interest @ 12% per annum on the sum of Rs. 3. 60 lakh for the period April 1997 to February 2005. This application was, in turn, based on the order dated 06. 09. 2004 of the State Commission in complaint case No. 153 of 1998 filed by the said petitioner. In its order dated 6. 09. 2004, the State Commission awarded the following reliefs to the complainant (petitioner herein): in view of the foregoing reasons we allow the complaint and direct OP No. 1 to pay to the complainant a sum of Rs. 3,60,000/- as per settlement with the surveyor together with interest @ 12% per annum and compensation of Rs. 50,000/- for having caused mental agony and harassment to the complainant by repudiating his rightful claim and forcing him to approach this Commission.

(2.) THE order of the State Commission quoted above does not, on the face of it, specify the period over which interest as ordered would accrue. Taking advantage of this position, the complainant claimed interest on Rs. 3. 60 lakh for April 1997-February 2005. In disposing of the said application dated 02. 07. 2005 (without any reference thereto), the State Commission passed the impugned order dated 07. 08. 2006. It is worth reproducing the entire order, which is as under: respondent no. 1 has stated that they have paid the principal amount of Rs. 3,60,000/- as compensation as per order dated 06. 09. 2004 passed by the Commission in complaint case no. C-153/98. We have also awarded interest @ 12%. The counsel for the respondent states that period of interest is not in the aforesaid order. In view of the latest judgment of the Supreme Court in Life Insurance Corporation of India and Anr. vs. S. Sindhu [ii (2006) CLT 18 (SC)] in such like (sic) cases the consumer is entitled for (sic) interest, if at all awarded, from the date of filing of the claim with the insurance company till the date of filing of the case. In the instant case from the date of accident, i. e. , in January 1997 till filing of the complaint (sic ). Parties shall calculate the interest @ 12% on the amount of Rs. 3,60,000/- w. e. f. February 1997 till April 1998 i. e. till the date of filing the complaint. Re-list on 29. 09. 2006 (emphasis supplied ).

(3.) IN the cross revision petition no. 4019 of 2006, filed by the New India Assurance Co. Ltd. , the petitioner (hereafter, the Insurance Company) has impugned the order dated 06. 08. 2006 of the State Commission, allowing interest @ 12% per annum from the date of accident till the filing of the complaint by the respondent (Harish Chadha ).