State Consumer Disputes Redressal Commission
Sh. Harish Kumar Verma. & Anr. vs Bharti Axa Life Insurance Co. Ltd. & Anr. on 13 May, 2020
H. P. STATE CONSUMER DISPUTES REDRESSAL
COMMISSION SHIMLA.
First Appeal No. : 127/2018
Date of Presentation: 18.05.2018
Order Reserved on : 24.10.2019
Date of Order : 13.05.2020
......
1. Shri Harish Kumar Verma son of late Sh. Gur Singh Verma.
2. Smt. Meena Verma wife of Shri Harish Kumar Verma.
Both R/o H. No.147/3 Palace Colony Mandi (H.P)
Correspondence address Village Shanag P.O. Bahang Tehsil
Manali District Kullu (H.P).
...... Appellants/Complainants
Versus
1. Bharti Axa Life Insurance Co. Ltd. Branch Office 2nd Floor
Velvilla Below Scandal Point The Mall Shimla (H.P) 171001
through its Branch Manager.
2. HDFC Standard Life Insurance Co. Ltd. Branch Office Main
Bazaar Mandi (H.P) through its Branch Manager.
......Respondents/opposite parties
Coram
Hon'ble Justice P.S. Rana (R) President
Hon'ble Ms. Sunita Sharma Member
Hon'ble Mr. R.K. Verma Member
Whether approved for reporting?1 Yes.
For Appellants : Mr. Rajiv Rai Advocate.
For Respondents : Ms. Kirti Sood vice Mr. Digvijay Singh
Advocate.
JUSTICE P.S. RANA (R) PRESIDENT:
O R D E R :-
1. Present appeal is filed against order dated 18.04.2018 passed by Learned District Consumer Forum/ Commission in consumer complaint No.328/2015 titled 1 Whether reporters of the local papers may be allowed to see the order? Yes. Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr.
Brief facts of consumer complaint:
2. Complainants filed consumer complaint under Consumer Protection Act pleaded therein that opposite parties issued Insurance policies through their agents and committed forgery & cheating. It is pleaded that HDFC Standard Life Insurance Co. Ltd. unilaterally cancelled policy No.16380786 without the consent of complainant No.2 and issued another policy No.16446533 without the consent of complainant No.2 and without obtaining signature of complainant No.2. It is further pleaded that HDFC Standard Life Insurance Co. Ltd.
obtained signatures of complainant No.2 in a forged manner. It is pleaded that opposite parties committed deficiency in service.
3. Complainants sought relief to the effect that opposite parties be directed to refund a sum of Rs.200000/- (Two lac) to complainants alongwith interest @ 12% per annum from date of receipt till actual payment jointly and severally. Complainants also sought relief to the effect that opposite parties be directed to pay a sum of Rs.50000/-(Fifty thousand) as compensation for causing harassment. In addition complainants sought litigation costs to the tune of 2 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 Rs.50000/-(Fifty thousand). Prayer for acceptance of consumer complaint sought.
4. Per contra version filed on behalf of Bharti Axa Life Insurance Co. Ltd. pleaded therein that Bharti Axa Life Insurance Co. Ltd. and HDFC Standard Life Insurance Co. Ltd. are entirely two different entities. It is pleaded that Sh. Ajay Gupta, Sh. Susheel Verma and Ms. Ruchika Sharma are necessary parties because personal allegations have been levelled in consumer complaint against them. It is further pleaded that Insurance policies were issued as per proposal forms submitted by complainants. It is pleaded that company is not vicarious liable for acts of its agents if agents acted beyond the scope of agent authority. It is further pleaded that agent is simply a facilitator.
5. It is pleaded that complainants did not cancel the Insurance policy within free look period. It is pleaded that complainants are bound by policy contract. It is pleaded that complainants have levelled allegations of forgery and cheating and such serious allegations require elaborate inquiry by civil court. It is further pleaded that complicated questions of facts and laws are involved in present consumer complaint which could not be disposed of under Consumer Protection Act in a summary manner. It is pleaded that complainants intend to wriggle out of contractual obligation. It is pleaded 3 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 that complainants are educated persons and proposal forms and Insurance policies signed by complainants are binding upon complainants. It is pleaded that complainants filled up proposal forms for Insurance policies numbers (1) 500- 8762485 (2) 500-9071902 (3) 500-9071910. It is further pleaded that in the year 2012 Insurance policies cited supra were issued. It is pleaded that premium payment term is fifteen years and mode of premium payment is annual in nature. It is pleaded that complainant has paid only one premium and thereafter complainant did not pay any further premium. It is pleaded that Insurance policies have entered into lapse mode. It is further pleaded that complainant did not pay remaining premium despite several reminders. It is pleaded that Bharti Axa Life Insurance Co. did not commit any forgery and cheating as alleged. Prayer for dismissal of consumer complaint against Bharti Axa Life Insurance Co. Ltd. sought.
6. Per contra separate version filed on behalf of HDFC Standard Life Insurance Co. Ltd. pleaded therein that present consumer complaint involve complicated questions of facts and laws and could not be decided under Consumer Protection Act in a summary manner. It is pleaded that present consumer complaint is bad for non-joinder of necessary parties i.e. Sh. Ajay Gupta, Sh. Susheel Verma and 4 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 Ms. Ruchika Sharma against whom personal allegations have been levelled by the complainants. It is pleaded that earlier policy issued in the name of opposite party No.2 was cancelled and another new policy was issued in favour of opposite party No.2 because opposite party No.2 has requested HDFC Standard Life Insurance Co. Ltd. that complainant No.2 could not pay premium of two Insurance policies simultaneously. It is pleaded that HDFC Standard Life Insurance Co. Ltd. did not commit any deficiency in service and also did not commit any forgery and cheating. Prayer for dismissal of consumer complaint sought.
7. Complainants filed rejoinder and reasserted allegations mentioned in consumer complaint. Learned DCF/DCC dismissed the consumer complaint. Feeling aggrieved against order passed by learned DCF/DCC complainants filed present appeal before State Commission.
8. We have heard learned Advocates appearing on behalf of parties and we have also perused entire record carefully.
9. Following points arise for determination in present appeal.
1. Whether appeal filed by complainants is liable to be accepted as mentioned in memorandum of grounds of appeal and whether allegations of forgery and cheating could be decided by 5 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018
Consumer Authority in summary manner under Consumer Protection Act and whether complicated facts and laws are involved in present matter which require elaborate enquiry by civil court?
2. Final order.
Findings upon point No.1 with reasons:
10. Complainant Sh. Harish Kumar filed affidavit in evidence. All allegations mentioned in consumer complaint have been reiterated in affidavit. There is recital in affidavit that Insurance policies issued by opposite parties are based upon forgery and cheating and opposite parties have committed deficiency in service.
11. Complainants also filed affidavit of Ms. Meena Verma in evidence. There is recital in affidavit that complainant No.1 and complainant No.2 are husband and wife. There is recital in affidavit that signatures of complainant No.2 were obtained upon Insurance policy by way of forged manner by HDFC Standard Life Insurance Company. There is recital in affidavit that agent whose name has been mentioned in policy is unknown to complainant No.2 and signatures of complainant No.2 were obtained in a forged manner in Insurance policy. Smt. Meena Verma has reiterated all allegations in affidavit mentioned in consumer complaint. State Commission has carefully perused all the annexures filed by complainants.6
Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018
12. Shri Sachin Kalra filed affidavit in evidence on behalf of Bharti Axa Life Insurance Co. Ltd. in evidence. There is recital in affidavit that Bharti Axa Life Insurance Co. Ltd. has no concern with HDFC Standard Life Insurance Co. Ltd. There is recital in affidavit that Sh. Susheel Verma and Smt. Ruchika Sharma against whom personal allegations have been levelled are necessary parties in present consumer complaint. There is recital in affidavit that Insurance policies were issued by Bharti Axa Life Insurance Co. Ltd. as per proposal forms submitted by complainants. There is recital in affidavit that Insurance policy was not cancelled within free look period. There is recital in affidavit that terms and conditions of Insurance policies are binding upon complainants. There is recital in affidavit that complainants have levelled allegations of forgery, fraud and cheating and such allegations require elaborate inquiry by civil court. There is recital in affidavit that complicated questions of facts and laws are involved in present consumer complaint and same could not be decided in a summary manner under Consumer Protection Act.
13. There is recital in affidavit that complainant has paid only one premium and subsequent premium remained unpaid and policy has acquired status of lapsed Insurance policy. There is recital in affidavit that complainants have 7 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 signed policies numbers (1) 500-8762485 (2) 500-9071902 (3) 500-9071910 voluntarily in the year 2012. There is recital in affidavit that terms of premium payment is annual in nature and tenure of premium payment is fifteen years.
14. Shri Amit Khanna filed affidavit on behalf of HDFC Life Insurance Co. Ltd. in evidence. There is recital in affidavit that complainants entered into a contract of Insurance policy with HDFC Life Insurance Co. Ltd. and same is binding upon complainants. There is recital in affidavit that present consumer complaint involves complicated questions of facts and laws relating to forgery, fraud and false signatures by agents in collusion with opposite parties. There is recital in affidavit that no request for cancellation of Insurance policy was received from complainant No.2 within free look period. There is recital in affidavit that complainant No.2 has written letter to HDFC Life Insurance Co. Ltd. that she could not pay premium of two Insurance policies simultaneously and as per request of complainant No.2 earlier Insurance policy issued by HDFC Life Insurance Co. Ltd. was cancelled and new single policy was issued. State Commission has carefully perused all annexures filed by opposite parties.
15. Submission of learned Advocate appearing on behalf of complainants that order of learned DCF/DCC is 8 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 contrary to laws and contrary to proved and complainants are legally entitled for a sum of Rs.200000/-(Two lac) alongwith interest @ 12% per annum from the date of receipt till actual payment from opposite parties jointly and severally is decided accordingly. State Commission has carefully perused contents of complaint and version and State Commission has carefully perused evidence adduced by both the parties by way of affidavits. Complainants have levelled allegations of forgery and cheating in present consumer complaint. Complainant No.2 has levelled allegations to the effect that her signatures were obtained upon Insurance policy in forged manner. State Commission is of the opinion that proceedings under Consumer Protection Act are summary proceedings in nature. State Commission is of the opinion that it is not expedient in the ends of justice and on the principles of natural justice to decide matter of forgery and cheating in summary manner under Consumer Protection Act. State Commission is of the opinion that it is expedient in the ends of justice and on the principles of natural justice to relegate complainants to civil court for adjudication of matters of forgery and cheating. See 2019(1) CLT 364 NC titled Devraj Kishore Das Versus Chief Manager Reliance LIC Ltd. & Ors.
16. Submission of learned Advocate appearing on behalf of complainants that complainants are legally entitled 9 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 for compensation to the tune of Rs.50000/-(Fifty thousand) for causing mental harassment is decided accordingly. State Commission is of the opinion that complainants have levelled allegations of forgery and cheating in Insurance policies in question. State Commission is of the opinion that it is not expedient in the ends of justice and on the principles of natural justice to decide matter for forgery and cheating in a summary manner under Consumer Protection Act.
17. Submission of learned Advocate appearing on behalf of complainants that complainants are entitled for litigation costs to the tune of Rs.50000/-(Fifty thousand) is decided accordingly. Complainants have levelled allegations of forgery and cheating in issuance of Insurance policies. State Commission is of the opinion that it is not expedient in the ends of justice and on the principles of natural justice to decide matter of forgery and cheating under Consumer Protection Act because proceedings under Consumer Protection Act are summary in nature.
18. Submission of learned Advocate appearing on behalf of Bharti Axa Life Insurance Co. Ltd. and HDFC Life Insurance Co. Ltd. that order of learned DCF/DCC does not warrant any interference by State Commission and appeal filed by complainants be dismissed is decided accordingly. Learned DCF/DCC has specifically mentioned in para-12 of 10 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 order that opposite parties did not commit any deficiency in service and did not commit any unfair trade practice. State Commission is of the opinion that matter relating to forgery and cheating requires elaborate inquiry by civil court. State Commission is of the opinion that words in para-12 of order of learned DCF/DCC to the effect that opposite parties did not commit any deficiency in service or unfair trade practice warrants interference by State Commission. State Commission is of the opinion that it is expedient in the ends of justice and on the principles of natural justice to relegate complainants to civil court for adjudication of dispute relating to forgery and cheating alleged to be committed by opposite parties. It is held that complicated questions of laws and facts are involved in the present matter. See 2006(IV) CPJ I Apex Court titled Oriental Insurance Company Ltd. Versus Munimahesh Patel. In view of above stated facts point No.1 is decided accordingly.
Point No.2: Final Order
19. In view of findings upon point No.1 above appeal filed by complainants is partly allowed. Complainants are relegated to civil court for adjudication of dispute relating to forgery and cheating matter inter se parties. Words in para- 12 of order of learned DCF/DCC to the effect that opposite parties did not commit any deficiency in service and also did 11 Harish Kumar Verma & Anr. Versus Bharti Axa Life Insurance Co. Ltd. & Anr. F.A. No.127/2018 not commit any unfair trade practice are ordered to be deleted. Order of learned DCF/DCC is modified accordingly. Parties are left to bear their own litigation costs before State Commission.
20. File of learned DCF/DCC alongwith certified copy of order be sent back forthwith and file of State Commission be consigned to record room after due completion forthwith. Certified copy of order be transmitted to parties forthwith free of costs strictly as per rules. Due to winter vacation of State Commission w.e.f. 11.01.2020 to 23.02.2020 and due to country wide lockdown on account of Corona virus appeal is decided today. Appeal is disposed of. Pending application(s) if any also disposed of.
Justice P.S. Rana (R) President Sunita Sharma Member R.K. Verma Member 13.05.2020 K.D 12