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Gujarat High Court · body

2014 DIGILAW 238 (GUJ)

REKHA KIRIT MAHIDA v. LIFE INSURANCE CORPORATION OF INDIA

2014-02-13

K.J.THAKER, VIJAY MANOHAR SAHAI

body2014
Judgment K.J. Thaker, J. By way of the present Letters Patent Appeal, the appellant who is the destitute mother of her deceased has challenged the judgment and order dated 10.1.2013 passed by the learned Single Judge in Special Civil Application No.16345 of 2012 by which the learned Single Judge dismissed the writ petition of the appellant. 2. The facts of the case are that the daughter of the appellant, namely, Varsha died and therefore, the appellant had claimed under Jeevan Suraksha (Pension Plan) Policy from the respondent for a sum of Rs.10,44,386/-as Notional Cash Option. The respondent offered only an amount of Rs.1,39,251.46 as the Proportionate National Cash Option towards the policy. The appellant did not accept the said amount. Thereafter, the appellant filed writ petition which came to be dismissed by this Court. Against the said order, the appellant preferred Letters Patent Appeal which also came to be dismissed by this Court. 3. Thereafter, the appellant agreed to accept the said amount of Rs.1,39,251.46 from the respondent with interest @ 9% by letter dated 3.8.2012. But the respondent did not pay the said amount nor replied to the appellant’s request. 4. Being aggrieved with the said action of the respondent, the appellant preferred Special Civil Application No.16345 of 2012 which came to be dismissed by the learned Single Judge by the impugned judgment and order. 5. We have perused the impugned order passed by the learned Single Judge. In the writ petition, the appellant had demanded interest @ 9% from 1.3.2002 till the date of payment. In our view, the same cannot be granted as she was offered the said amount on 27.11.2003. However, under the guise that she wanted full amount, she did not accept the said amount. 6. In our opinion, no case is made out by the appellant for payment of full amount of Rs.10 Lacs to the appellant with interest @ 9%. Be that as it may, in our opinion, after rejection of the writ petition of the appellant, the appellant made a request to Life Insurance Corporation on 3.8.2012 for making payment and the said amount was paid by LIC on 4.8.2013. The respondent has made the payment after delay of one year. Hence, the appellant is entitled for simple interest @ 6% for the said delayed payment. The respondent has made the payment after delay of one year. Hence, the appellant is entitled for simple interest @ 6% for the said delayed payment. The respondent is directed to make payment of the interest amount to the appellant within a period of eight weeks from today. 7. In the result, this Letters Patent Appeal stands partly allowed. The impugned judgment and order dated 10.1.2013 passed by the learned Single Judge in Special Civil Application No.16345 of 2012 stands quashed and set aside. There shall be no order as to costs.