Delhi State Consumer Commission has set aside a district consumer forum's order asking an insurance company to settle a claim in a car accident case, saying that it had not given any reason and "a non-speaking order" cannot sustain under the law.
The commission also said the forum's order was "erroneous" and asked it to pass a "fresh and well reasoned" verdict in the case.
"A non-speaking order is no order in the eye of law. It is erroneous and cannot be sustained under law. Therefore, in our considered view it is the fittest case which should be remanded back to the district consumer forum for a fresh and well reasoned decision in accordance with the law," the bench, comprising Judicial Member S A Siddiqui and Member S C Jain, said.
The commission also said that the forum had not given any reason as to why the Oriental Insurance Company Ltd, with which the damaged car was insured, should settle the matter on non-standard basis, i.E, for making payment of 75 per cent of the assessed loss by the surveyor.
"The law does not permit any court/forum to pass an arbitrary order. The final order should be well reasoned and a speaking order.
"Brevity is desirable but it does not absolve courts from giving brief reasons for arriving at a conclusion whenever a final order is to be passed. It should be a speaking order indicating the reasons for the same," the commission said.
The insurance company had approached the commission challenging the forum's order directing it to settle the claim with the travel agency, whose car was insured with it, by giving 75 per cent of the surveyor assessed amount of Rs 2,28,574.
The insurance firm had earlier denied the claim of the car which had met with an accident in 2006, on the ground that the driver of the vehicle was holding a fake licence at the time of incident.
The firm said the forum had not given any reason while asking it to settle the matter on non-standard basis.
