2000 (9) TMI 966 - Commission - Companies Law

Summary

Issues:
1. Dismissal of complaint by the Consumer Disputes Forum (CDF) based on the cheques being sent by registered post.
2. Determining liability of the opposite party in case of fraudulent encashment of cheques.
3. Applicability of investigation by C.I.D. or C.B.I. in consumer dispute cases.

Detailed Analysis:
1. The complainant applied for premature withdrawal of funds from the ULIP Scheme but did not receive the cheques sent by the opposite party via registered post. The CDF dismissed the case, suggesting investigation by C.I.D. or C.B.I. The appellant challenged this decision, arguing that the mere dispatch of cheques does not absolve the opposite party of liability. The Commission held that the liability continues until the amount reaches the complainant, criticizing the Forum's decision and ruling in favor of the appellant.

2. The opposite party claimed to have sent cheques to the complainant's address, which were later found to be fraudulently encashed. The Commission determined that the opposite party cannot evade liability by merely dispatching cheques via registered post, especially when the cheques were encashed by a fictitious person. The appellant's argument that liability persists until the amount reaches the complainant was accepted, leading to a decision against the opposite party.

3. The Commission emphasized that the complainant should not be required to await the outcome of investigations by law enforcement agencies like C.I.D. or C.B.I. The fact that the cheques were encashed fraudulently by an unknown person highlighted the opposite party's ongoing liability. The Commission overturned the Forum's decision, directing the opposite party to pay the complainant the principal amount, interest, bonus, compensation for mental anguish, and litigation costs within three months of the judgment.

In conclusion, the judgment highlighted the importance of ensuring that the consumer receives the intended funds, holding the opposite party liable for the fraudulent encashment of cheques and awarding compensation to the complainant for the ordeal faced.