Delhi High Court
The New India Assurance Co Ltd. vs Sharda & Ors. on 5 September, 2019
$~59 & 60
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Decided on: 05.09.2019
+ MAC.APP. 660/2017
THE NEW INDIA ASSURANCE CO LTD ..... Appellant
versus
SHARDA & ORS ..... Respondents
+ MAC.APP. 664/2017
THE NEW INDIA ASSURANCE CO LTD ..... Appellant
versus
KUNTI DEVI @ KUNTA DEVI & ORS ..... Respondents
Through: Mr. J.P.N. Shahi and Ms. Shivangi
Krishna, Advocates for appellant.
Mr. Jitender Kamra, Advocate for R-1
& R-2.
CORAM:
HON'BLE MR. JUSTICE NAJMI WAZIRI
NAJMI WAZIRI, J. (Oral)
1. These appeals against the order dated 27.04.2017 in MAC No. 89/14
(New No. 1208/16) impugn the Award of compensation passed by the
learned MACT on the ground that the appellant is entitled to right of
recovery for the compensation, which it has been made liable to pay. The
impugned order had declined the right of recovery on the ground that the
appellant/insurer had not sent notice to the driver under Order 12 Rule 8
CPC. It is the appellant's case that there is no requirement to serve notice to
anyone other than the insured person. The Court agrees with the appellant's
contention because the contract of insurance is only with the insured and
there being no privity of contract with the driver, there is no requirement in
law to serve such notice upon the driver. It is not for the insurer to go on a
wild goose chase to find the driver. The insurer had served notice upon the
insured under Order 12 Rule 8 CPC calling upon him to furnish the driving
licence of the person driving the vehicle, at the time of the accident. No
driving licence was furnished either to the insurer or before the learned
Tribunal. Accordingly, an adverse inference would be drawn that the driver
concerned possessed no driving licence. Therefore, there was a breach of
policy condition and the right of the insurer to recover the amount from the
insured is made out. Accordingly, the impugned order is modified. Right of
recovery is granted to the appellant against the owner of the vehicle-the
insured.
2. The second challenge is to the 10% rate of interest granted by the
learned MACT. It is argued that ordinarily for the past half a decade, the
general rate of interest granted by learned MACT is @ 9% per annum. The
Court would note that in Parminder Singh vs. New India Assurance Co.
Ltd. & Ors., 2019 SCC OnLine SC 802, interest @9% was maintained. In
view of the above, rate of interest is reduced from 10% to 9% p.a. on the
awarded amount from the date of filing of the claim petition, till its
realization.
3. The monies deposited by the appellant shall be released to the
beneficiaries of the Award, in terms of the scheme of disbursement specified
therein.
4. The appeals stand disposed-off in terms of the above.
5. Since the appellant has succeeded in the appeals, let the Statutory
amounts, alongwith interest accrued thereon, be returned to the appellant.
NAJMI WAZIRI, J
SEPTEMBER 05, 2019/RW
