In a notable judgment by the Supreme Court of India in Punj Lloyd Ltd v Corporate Risks India (P) Ltd, it was held that a consumer forum could not reject a complaint merely because the complaint contains complicated facts of law.
The appellant company, Punj Lloyd, took out a high-priced insurance policy through the respondent, Corporate Risks. The Oriental Insurance Company agreed to issue the policy and Punj Lloyd issued a cheque towards payment of the premium to Corporate Risks. However, Corporate Risks was late sending the cheque to Oriental Insurance, which consequently refused to issue the policy.
Punj Lloyd subsequently purchased insurance through ICICI Lombard General Insurance at a higher premium. Afterwards, it filed a complaint against Corporate Risks before the National Consumer Disputes Redressal Commission (NCDRC), the apex forum for consumer disputes, alleging deficiency of service and seeking compensation. The NCDRC dismissed the complaint at the outset on the grounds that disputed and complicated questions were involved.
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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in, lbhasin@vsnl.com or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
