UNITED INDIA INSURANCE CO LTD Vs. SUNKU RADHAKRISHNA SHETTY

JUDGEMENT

(1.) This appeal is preferred by the United India Insurance Company Limited represented by its Divisional Manager, Divisional Office at Anantapur which was the opposite party in C. D. No.227/1992 being aggrieved by the order of Anantapur District Forum dated 8.7.1997 allowing the C. D. and directing it to pay a sum of Rs.16,145 /- with 12% interest from 13.8.1992 till realisation and also to pay costs of Rs.300/-.

(2.) The respondent in this appeal was the complainant in the C. D. In his complaint he states that he was a partner of a registered partnership firm by name M/s. Bhagya Lakshmi Financiers of Guntakal and that it was dissolved on 31.3.1994 by a deed of dissolution and that the same was intimated to the Registrar of Firms, Hyderabad. Under the deed of dissolution other partners of the firm agreed to give away the running business of the firm to the complainant and since then he had been running the business of the firm as proprietary concern. One C. V. Prasad was due some amount to the said firm. He owned a vehicle A. P. A.4744 which was involved in an accident. The said vehicle was insured with the appellant Company and it had insurance cover at the time of the accident. The appellant had to pay a sum of Rs.12,750/- to C. V. Prasad. This is not disputed by the Insurance Company. C. V. Prasad authorised the appellant to pay the said sum of Rs.12,750/- to the complainant towards dues he owed to the firm. The complainant approached the appellant for payment and he also given a copy of the deed of dissolution. According to the complainant, after a great deal of ordeal the appellant issued a cheque dated 3.9.1990 for the said sum in the name of the dissolved firm as follows: "m/s. Bhagya Lakshmi Financiers Account Payee C. V. Prasad". As it was issued account payee C. V. Prasad it could not be encashed by the complainant. Inspite of several approaches made by the complainant and notices issued through lawyer the appellant did not send a cheque for the said sum in his name. The appellant got issued are ply through Advocate dated 4. l2.1990 raising several objections and enquiring whether the dissolution of the firm was intimated to the Registrar of Firms and wanted a certificate to that effect. Even after the same were complied after the complainant applied for and got necessary certified copies from the Registrar of Firms the appellant did not issue proper cheque. Under those circumstances the complainant approached the Anantapur District Forum claiming in all a sum of Rs.16,045/-. The said sum comprised of Rs.12,750/- which the appellant had to pay towards compensation for the accident involving the vehicle of C. V. Prasad, Rs.2,295/- towards interest @ 18% per annum on the said sum from 3.9.1990 (the date of the first cheque) to 20.2.1992, Rs.1,000/- towards damages due to loss in business and Rs.100/- towards Advocate's notice charges. The complainant alleged that the Insurance Company owed a duty to render prompt service by paying the accident claim amount at the earliest.

(3.) In the counter filed by the appellant before the District Forum it is stated that the complainant was issued a cheque dated 13.8.1992 for Rs.12,750/- towards full and final settlement of the claim and that the complainant received the cheque and did not make any protest. But, obviously that was after the complaint was already presented in the District Forum on 27.6.1992. The appellant also stated in the counter that "there is absolutely no delay in settling the claim of the complainant. Immediately, after the claim is made by the complainant, the claim has been processed and this respondent company has issued a cheque Bearing No.832107, dated 3.9.1990 for Rs.12,750/- in the name of M/s. Bhagya Lakshmi Financiers, Guntakal, as per endorsement No.10 of the terms and conditions of the insurance policy issued to Shri C. V. Prasad, Guntakal and that the said clause provides that the Financiers are deemed to be the owners and any payment made by the Insurance Company to the Financiers completely discharges the complainant from their liability to the Insured". From this it is obvious that the appellant did not deny that the first cheque dated 3.9.1990 was issued as the complainant stated "m/s. Bhagya Lakshmi Financiers Account Payee C. V. Prasad". The appellant also admitted in his counter that the said cheque was issued in the name of M/s. Bhagya Lakshmi Financiers Guntakal as it was provided in the deed of dissolution dated 31.3.1984 that one of the partners had taken over the entire business and that he was continuing the business in the name of the said firm. From this it is clear that the appellant was aware even at the time when the first cheque dated 3.9.1990 was issued that the firm was dissolved and that the complainant took over the business and he was running it as a proprietory concern. The appellant also stated in his counter as follows: "this respondent company further submits that on 4.12.1990, the company has addressed a letter to the complainant, requesting him to send a copy of the letter of intimation to the Registrar of Firms, Hyderabad, with regard to the Dissolution of the Firm viz. , M/s. Bhagya Lakshmi Financiers, Guntakal and informed the complainant that only after the receipt of the said copy of the letter of the intimation to the Registrar of Firms, further steps will be taken with regard to the settling the claim of the complainant. But the complainant has sent a photostat copy of Form 'a' received from the Registrar of Firms, Hyderabad, dated 7.5.1991 stating that the Firm M/s. Bhagya Lakshmi Financiers, Guntakal has been dissolved with effect from 31.3.1984, only on the 9th May, 1992. So, immediately after taking legal opinion, the company has issued a cheque Bearing No.194587, for Rs.12,750/-. The delay is only due to the non- sending of the said copy of the letter of intimation to the Registrar of Firms, Hyderabad".