ASHATAI vs SHRIRAM CITY UNION FINANCE LTD.

The Supreme Court upheld the decision of the District Consumer Disputes Redressal Forum, which found that the Finance Company failed to provide the insurance policy at the time the loan was sanctioned, constituting a deficiency in service under the Consumer Protection Act, 1986. The Court emphasized that the Finance Company could not recover the loan amount from the Appellant since the insurance policy was not in effect when the loan was issued. The appeal was dismissed, affirming the lower court's order for compensation to the Appellant.