State Consumer Disputes Redressal Commission
Unit Trust Of India vs Avtar Singh on 31 August, 2010
STATE CONSUMER DISPUTES REDRESSAL COMMISSION, PUNJAB,
SCO NOS.3009-12, SECTOR 22-D, CHANDIGARH.
First Appeal No.1469 of 2004
Date of institution : 02.12.2004
Date of decision : 31.08.2010
Unit Trust of India having its Branch Office at Shree Dwarka Deesh
Complex, Queens Road, Amritsar, through its Branch Office Chandigarh
through its Authorised Signatory Sh.Atul Sharma.
...Appellant
Versus
Avtar Singh son of S.Tara Singh c/o Dyeing House, Gali No.4, Ram Nagar
Colony, Guru Nanak Pura, Khoo Bhalla, Islamabad, Amritsar.
...Respondent
First Appeal against the order dated
17.9.2004 passed by the District Consumer
Disputes Redressal Forum, Amritsar.
Before:-
Hon'ble Mr.Justice S.N.Aggarwal, President.
Lt.Col.Darshan Singh (Retd.), Member.
Mrs.Amarpreet Sharma, Member Present:-
For the appellant : Ms.Madhu P. Singh, Advocate. For the respondent : Sh.Ravinder Rana, Advocate. LT. COL.DARSHAN SINGH (RETD.), MEMBER The respondent / complainant (Avtar Singh) became member of ULIP scheme floated by the opposite party / appellant (Unit Trust of India). The complainant submitted that under this scheme, he deposited Rs.6000/- per year for 10 years and thus total amount of Rs.60,000/- for a period of 10 years, which was maturity period for the scheme. This amount of Rs.60,000/- along with bonus and other benefits under the scheme was required to be paid to the complainant by the opposite party on the maturity date of 31.3.2002. The complainant alleged that the opposite party failed to pay the maturity amount along with bonus and other benefits under the scheme. Alleging deficiency in service on the part of the appellants, the complainant filed consumer complaint with the District Consumer Forum, Amritsar and prayed for direction to the First Appeal No.1469 of 2004 2 opposite parties to pay him the maturity amount along with bonus and other benefits.
2. The opposite parties filed written reply and admitted that the complainant became member of the scheme but failed to deposit all the instalments as per the schedule. The complainant deposited only 6 instalments as per details given below:-
No. Due date instalments Instalment Instalment Amount paid on Number 1 31.3.1992 31.3.1992 A-1 Rs.6000/-
2 10.1.1993 Not received A-2 Rs.6000/-
3 10.1.1994 Not received A-3 Rs.6000/-
4 10.1.1995 Not received A-4 Rs.6000/-
5 10.1.1996 30.3.1996 A-5 Rs.6000/-
6 10.1.1997 Not received A-6 Rs.6000/-
7 10.1.1998 27.3.1998 A-7 Rs.6000/-
8 10.1.1999 30.3.1999 A-8 Rs.6000/-
9 10.1.2000 18.3.2000 A-9 Rs.6000/-
10 10.1.2001 16.3.2001 A-10 Rs.6000/-
3. Accordingly due to the default in payment of instalments, his membership was terminated. It was further submitted that the opposite party at New Delhi accordingly sent the cheque to the complainant on 26.5.1994 on account of value of 588.935 units outstanding upto 1994. It was further submitted that office of the opposite party at New Delhi also refunded Rs.6000/- to the complainant vide cheque No.713664/- dated 30.6.1998, which was encashed by the complainant and stood paid to him on 10.9.1998.
4. The complainant produced affidavit Ex.C1 in support of his version. The opposite party produced Ex.R1, affidavit of R.S.Ahluwalia, but no one appeared for the opposite party and thus the opposite party was proceeded against ex-parte.
First Appeal No.1469 of 2004 3
5. After hearing the learned counsel for the complainant and going through the evidence as brought on file, the learned District Forum allowed the complaint and directed the opposite parties to pay maturity value of the membership of the complainant and also bonus due under the rules after deducting the amount of two instalments, which were not paid. The opposite party was further directed to pay interest at the rate of 9% per annum on the amount due from the date of maturity i.e. 31.3.2002 till the date of payment along with costs of litigation of Rs.1000/-.
6. Hence the appeal.
7. We have heard the learned counsel for the parties and have gone through the evidence on file.
8. As per the details of deposit by the complainant submitted by the opposite parties, the complainant did not deposit 4 instalments of Rs.6000/- each which were due on 10.1.1993, 10.1.1994, 10.1.1995 and 10.1.1997.
9. To rebut this contention of opposite party, the complainant placed on record receipt marked X which shows that a sum of Rs.6000/- was paid by the complainant in the account of UTI on 30.3.1994. This established that the instalment which was due on 1.1.1994 was paid on 30.3.1994. The complainant has also placed on record bank certificate (Marked X1). According to which the complainant deposited Rs.6000/- in the account of opposite party on 27.3.1997. This establishes the contention of the complainant that the instalment which was due on 10.1.1997 was paid on 27.3.1997. It is argued by the counsel for complainant that remaining two instalments were also paid but the complainant has lost the receipts. It is further argued that had the instalments been not paid, the opposite party must have discontinued the membership of the complainant and was not likely to accept future instalments. To prove the payment of instalments, the complainant was required to produce the receipts. Since he has not produced the receipts for all the instalments as alleged by him that he paid First Appeal No.1469 of 2004 4 all ten instalments of the scheme cannot be accepted. However, it is evident that the complainant paid 8 instalments and there is dispute only of two instalments which were due on 10.1.1993 and 10.1.1994. Accordingly, the complainant is liable to get the amount paid by him.
10. The relevant features of ULIP scheme as applicable in this case and submitted by the opposite parties are given below:-
1) The first initial contribution for the scheme has to be paid along with the application for joining the plan. Subsequent contributions (technically known as "renewal contributions") are required to be paid by the Member either half yearly or yearly, as per the option indicated by him at the time of joining the plan. Prior to 1.7.2000 a grace period of 15 days was allowed from such due date to deposit the renewal contribution, after which the matter was required ratification by the Life Insurance Corporation of India.
2) Any member whose renewal contribution remains unpaid even after expiry of one year from the specified due date shall cease to continue in the plan. Insurance cover on the life of such a member will also stand to terminate subsequently.
3) A member whose participation in the plan stands lapsed or terminated, may approach the Trust not later than one year from the due date (presently from the first day of the month) of the earliest contribution in default, to revive his membership. This request may be considered subject to such terms and conditions as may be prescribed by the Trust in consultation with the LIC.
11. In accordance with the above mentioned features and ULIP scheme, the membership of the complainant was terminated due to non payment of instalment due in 1993, 1994 and 1995 and the amount of two instalments paid by the complainant was refunded to him as per the details given below:-
First Appeal No.1469 of 2004 5
i) Vide cheque sent to the complainant on 26.5.1994 on account of value of 588.935 units outstanding upto 1994.
ii) Refund of Rs.6000/- vide cheque No.713664 dated 30.6.1998.
12. In spite of the fact that the membership of the complainant was terminated due to non payment of due instalments, the opposite party / appellant in their written reply still offered to regularise the membership of the complainant and to pay him all his dues and entitled amount in respect of his ULIP membership, subject to the complainant produced proof of the payment of instalments due on 10.1.1993, 10.1.1994, 10.1.1995 and 10.1.1997 and refund the amount already paid to him. i.e. amount of two instalments. Since the complainant did not submit the proof of payment of all the instalments and also failed to refund the amount paid to him, the opposite party did not regularise membership to restore all the benefits to him.
13. From the aforesaid discussion and the facts stated above, it is evident that the complainant paid a total number of 8 instalments of 6000/- each. T0he amount of two instalments was refunded to the complainant due to termination of his membership. Thus, the complainant deserves to be paid back the balance amount of six instalments.
14. We, therefore, accept the appeal partly and ordered that amount of 6 instalments be refunded to the complainant along with interest at the rate of 9% per annum from the date of deposit till the date of payment. The District Forum order accordingly stands modified to the extent as indicated above.
15. The appellant had deposited a sum of Rs.15,000/- with this Commission at the time of filing of appeal. This amount of Rs.15,000/- along with interest accrued, if any, be remitted to the complainant under intimation to the District Forum and the appellant. The balance amount will be paid by the appellant to the complainant within 45 days from the date of receipt of copy of order.
First Appeal No.1469 of 2004 6
16. The arguments in this case were heard on 27.8.2010 and the order was reserved. Now parties be communicated about the same.
17. The appeal could not be finalised within the statutory period due to heavy pendency of court cases.
(Justice S.N.Aggarwal) President (Lt.Col.Darshan Singh(Retd.) Member (Mrs.Amarpreet Sharma) Member August 31, 2010.
Davinder