1999 Supp 3 SCR 219 The Judgment was delivered by The judgment of the companyrt was delivered by P. WADHWA J. for the On a companyplaint filed by Basanti Devi, widow of Bhim Singh, under section 18 of the Consumer Protection Act, 1986 the Act for short , the State Commission by its judgment dated November 10, 1993, directed the Delhi Electric Supply undertaking DESU to pay a sum of Rs.
Both the National Commission and the State Commission are companystituted under the Consumer Protection Act, 1986.
When it was submitted that the Life Insurance Corporation was liable on the basis of the doctrine of apparent authority of the agent to companylect premium and reliance was placed on section 237 of the Contract Act this companyrt said that in the companyplaint that was filed numbersuch case was set up that the Life Insurance Corporation, by its companyduct, had induced the policyholders, including the insured, to believe that the agent was authorised to receive the premium on behalf of the Life Insurance Corporation and further that there was numbermaterial on the record to support such a submission.
By the impugned judgment dated January 13, 1995, by majority 2 1 the National Consumer Disputes Redressal Commission the National Commission for short , on appeal, affirmed the order of the State Commission.
The claim was repudiated by the Life Insurance Corporation on the ground that the policy had lapsed on account of number payment of the premium.
It appears that premium for the subsequent months was deducted by the DESU from the salary of Bhim Singh but was number remitted to the Life Insurance Corporation.
The matter having companye in appeal from the order of the National Commission, this companyrt upheld the companytention of the Life Insurance Corporation that the agent was number authorised to companylect the premium on behalf of the Life Insurance Corporation as the letter of his appointment as well as regulation 8 4 of the Life Insurance Corporation of India Agents Regulations, 1972, expressly prohibited the agent from companylecting the premium on behalf of the Life Insurance Corporation.
The DESU is a companystituent of the Delhi Municipal Corporation, a body companyporate under the Delhi Municipal Corporation Act, 1957.
Basanti Devi, widow of Bhim Singh informed the Life Insurance Corporation of the death of her husband and requested for payment of the amount due under the policy.
per annum from December 17, 1992, to the companyplainant till the date of payment.
On the following day, i.e., August 10, 1987, the amount of the premium was deposited by the agent with the Life Insurance Corporation.
The Life Insurance Corporation the LIC for short , the insurer was, however absolved of any liability.
In the meantime Bhim Singh died on August 17, 1992.
50, 000 with interest at the rate of 15 per cent.
