Excelsior Correspondent
JAMMU, May 30: Division Bench of State High Court comprising Chief Justice N Paul Vasanthakumar and Justice Ali Mohammad Magrey has held that no interim award can be made by the State Consumer Commission.
The significant judgment has been passed in a bunch of petitions filed by Jammu and Kashmir Bank Ltd, the State Bank of India and Punjab National Bank questioning common order dated 24.09.2015 passed by the Jammu and Kashmir State Consumer Disputes Redressal Commission in different complaints.
By this common order, the State Consumer Commission has passed an interim award, directing the appellant-banks to deposit half of amount of insurance policy/stock statement whichever is lesser in the Commission for its disbursement in accordance with orders those may be passed, within a period of two weeks during which period the complainants have also been directed to file their evidence by way of affidavits and other materials.
The grievance of the appellants in these appeals was that there is no provision in the Jammu and Kashmir Consumer Protection Act 1987, empowering the State Commission to pass an interim award of such a nature. It was contended that the banks are acting as corporate agencies of the Insurance Companies and without considering the real issue between the parties and without considering the stand of the banks before the State Commission and without recording any finding with regard to the liability of the banks, interim direction was issued.
“Merely because the bank is helping the borrower to get his hypothecated stocks insured, it cannot mean that it is rendering any services. The purpose of assisting the borrower to get insurance is to secure the loan which is advanced to the borrower and to relieve the borrower of his liability to the bank on certain contingencies”, the appellants said.
The principal contention was that before determining the real issue raised in the complaints and getting the reply of the banks as well as the Insurance Companies, the State Commission has erroneously directed the banks to deposit half amount of the insurance policy/ stock statement whichever is lesser for disbursing the same to the complainants after determining the real issue.
After hearing battery of lawyers from both the sides, DB observed, “passing an interim direction before considering the claim of the complainant is erroneous. As the liability of the appellants has not been determined and the amount payable to the complainants, if any, having not been assessed by the State Commission, giving direction to deposit half of the amount of the insurance policy/stock statement is unnecessary”.
“The direction having been set aside in these appeals, wherever attachment of salary accounts were ordered, the same shall stand released forthwith”, DB directed.
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