Karnataka HC Orders Fresh Hearing After State Commission Cut Claimant’s Rs 7.04 Lakh Insurance Award To Rs 5.87 Lakh In Counsel’s Absence

The petitioner’s consumer complaint was allowed by the District Forum, which directed the insurer to pay Rs. 7,04,700 with interest and costs.

The insurer appealed in Appeal No. 974/2014. On 1 June 2022, the appeal was recorded as dismissed for non-prosecution; however, after the petitioner’s counsel had left, the State Commission heard the matter in his absence, changed the recorded outcome from “dismissed” to “allowed,” and reduced the award to Rs. 5,87,050 based on a surveyor’s assessment.

The petitioner’s review application was unsuccessful, and he challenged the relevant orders before the High Court.

The Court referred to Section 50 of the Consumer Protection Act, 2019, observing that the order on review could be said to conform to that provision; it also noted the petitioner’s submission that the Consumer Protection Act, 1986 contained no provision for review.

The Court’s reasoning further required the State Commission to consider the material deductions in the surveyor’s report and to determine the appeal after hearing the parties.

The State Commission reduced the District Forum’s award by relying on the surveyor’s assessment, but the High Court found that it had not considered the deductions used to arrive at that assessment.

The Court also took account of the petitioner’s submission that the matter had first been recorded as dismissed and was then heard and allowed after his counsel had left.

In those circumstances, the appellate order could not stand, and the matter required reconsideration after hearing both parties.

The parties’ counsel were directed to appear on every listing and cooperate in early disposal; any amount deposited by the insurer was made subject to the appeal’s final outcome.