Gurdaspur District Commission Holds Punjab Gramin Bank And Bajaj Allianz Life Insurance Liable For Deficiency In Service For Misappropriation Of Cheque

The District Consumer Disputes Redressal Commission, Gurdaspur (Punjab) bench comprising Lalit Mohan Dogra (President) and Bhagwan Singh Matharu (Member) held Punjab Gramin Bank and Bajaj Allianz Life Insurance Company liable for deficiency in services and unfair trade practices. The Bank and the Insurance Company failed to process the cheque for Rs. 46,645 in favour of the Complainant, which was due post the maturing of the insurance policy, as per the agreement.

Brief Facts;

Surjit Singh (“Complainant”) had an account with Punjab Gramin Bank (“Bank”) and had purchased a life insurance policy from Bajaj Allianz Life Insurance Company (“Insurance Company”) through the bank. The complainant alleged that he was advised by the bank to buy the insurance policy for Rs. 10,000 per annum. He paid the premium as per the policy terms, and after the policy matured, he approached the bank for the final payment. The bank directed him to the insurance company, assuring him that the amount would be automatically credited to his account. However, the complainant did not receive the payment. He later found out that a cheque for Rs. 46,645 had been sent to the bank by the insurance company, but the bank claimed not to have received it. Feeling aggrieved, the complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Gurdaspur, Punjab (“District Commission”).

The Bank did not appear before the District Commission and was proceeded against exparte. On the other hand, the Insurance Company denied the complainant’s allegations and argued that the complainant had purchased the insurance policy with a premium-paying term of 5 years. According to them, the complainant had already received a cheque for the matured amount, which he had encashed through Axis Bank (Amritsar), making the complaint baseless.

Observations by the Commission:

The District Commission rejected the submission made by the Insurance Company that they had already issued a cheque of the aforementioned amount and noted that the insurance company had failed to provide any statement of account or concrete evidence proving that the complainant had indeed encashed the cheque, nor did they substantiate that the complainant held an account with Axis Bank, Amritsar. In contrast, the complainant presented a statement of account maintained with the Bank, clearly showing that the amount had not been received, indicating that the cheque had likely been misused. The District Commission ordered the Bank and the Insurance Company to enquire the same.

Based on this evidence and the information presented, the District Commission concluded that the non-payment of Rs. 46,645/- by the Bank and the Insurance Company amounted to a deficiency in service. Consequently, the District Commission ruled in favour of the complainant and directed the Bank and the Insurance Company to pay the due amount of Rs. 46,645/- along with interest and Rs. 10,000 as compensation for mental agony, harassment, and litigation costs.

Case: Surjit Singh vs Punjab Gramin Bank and Anr.

Case No.: Complaint No. 10 of 2020

Advocate for the complainant: Sh. Rohit Gupta

Advocate for the Respondent: Sh. Sachin Mahajan for the Insurance Company

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