By VN Balakrishna, IANS
Ahmedabad : The National Consumer Disputes Redressal Commission, New Delhi, in a landmark judgment, has directed New India Assurance Co. Ltd. to pay Durga Dalal Rs 10,000 with an interest of 10 per cent per annum from January 1, 2003 till payment in a complaint filed by a power of attorney (POA) holder. The order should be complied with within six weeks from the date it was issued, the commission said.
The panel, which was deciding on a revision petition filed by Consumer Education and Research Society (CERS), Ahmedabad (Gujarat), held that a Power of Attorney holder is entitled to file a complaint under the Consumer Protection Act.
It set aside the order of the District Forum, Ahmedabad Rural, which had dismissed the complaint as “non-maintainable” on the ground that a power of attorney holder had filed the complaint; and the order of the Gujarat State Commission that had upheld the decision.
The parents of Durga Dalal, who had purchased a Sony TV, alleged that the television had suddenly become non-functional and the insurance company was bound to reimburse the consumer on the basis of a household policy.
On July 30, 2002, the party submitted a claim for Rs 30,000 on the ground that the television had been completely damaged. As the amount was not paid, the complainant approached the district forum.
The forum dismissed the complaint on November 22, 2006 saying the complaint had been filed by the power of attorney holder and not by the complainant himself.
On April 10, 2007, the state commission confirmed the forum’s order though it noted that the complaint had been signed and presented by the power of attorney holders – the parents of the consumer.
The insurance company submitted before the National Commission that on June 24, 2004 it had offered to pay Rs.10,000. It said its surveyor had reported on September 1, 2002 that the damage to the television had taken place nearly three years ago and that it was a very old model valued at Rs.8,500 to Rs.9,500.
The insurance company further said the damage was because of wear and tear that was not covered under the scope of policy. Besides, the complainant had not informed about the damage within 15 days and according to policy condition, the claim was not payable.
The National Commission directed the insurance company to reimburse the complainant within six weeks from the day of the order and pay Rs 10,000 with interest at the rate of 10 per cent per annum from January 1, 2003 till payment. There was no order on costs.
The National Commission observed at the outset that unfortunately, in the present case, the State Commission and the District Forum had taken “an over-technical view” in dismissing the complaint by holding that father/mother of an aggrieved person or his power of attorney was not entitled to file a complaint under the Consumer Protection Act 1986.
“This is erroneous,” the National Commission observed. “It is to be reiterated that under the Act, technicalities are not to be encouraged because the only procedure, prescribed under the Act, is to follow principles of natural justice and to decide the matter after hearing both parties.”
The National Commission added: “It has been observed that a complaint alleging defects in goods or deficiency in service can be entertained on receipt of a letter stating sufficient facts and the cause of action.”
If required, it can be entertained after recording the statement of a complainant. And if grounds are made out, a notice is required to be issued to the opposite party. This is forgotten and we still erroneously try to adhere to the procedure prescribed under the Code of Civil Procedure (CrPC) or elsewhere.”
The National Commission described as “erroneous” the state commission’s dismissal of the complaint even though it had been signed and presented by the power of attorney holders, the consumer’s parents.
The state commission had done so “by relying upon the principles of subrogation or assignment. It is hoped that before passing such an order, the state commission would be careful. Assignment / subrogation is altogether a different concept from that of a power of attorney, that, too, power given to the father or mother and not to a stranger or to a consumer organisation, which is entitled to file a complaint under the Consumer Protection Act.”