Jharkhand High Court
The Branch Manager vs Janardan Mondal Represented Through ... on 8 April, 2025
Author: Gautam Kumar Choudhary
Bench: Gautam Kumar Choudhary
2025:JHHC:10854
IN THE HIGH COURT OF JHARKHAND AT RANCHI
M.A. No. 315 of 2016
The Branch Manager, The Oriental Insurance Company Ltd. Dumka
Branch Court Compound, Dumka, P.O. and P.S. Dumka, District-
Dumka, Jharkhand, represented through its Sr. Divisional Branch
Manager, The Oriental Insurance Company Ltd., Ranchi D.O.-1,
Ranchi, Tiwary Enclave, Circular Road, P.O. and P.S. Lalpur, District-
Ranchi, Jharkhand.
.... .... Appellant
Versus
1. Janardan Mondal represented through his wife Geeta Mondal, R/o
village-Budhudih, P.O. and P.S. Jamtara, District-Jamtara,
Jharkhand
2. Abhay Kumar Ray, owner of vehicle No. JH-15B-7100, R/o
village Rajapalli, P.O. and P.S. Jamtara, District-Jamtara
3. Santosh Mahato, S/o Late Dhiren Mahto, Driver of vehicle No. JH-
15B-7100, village and P.O., Rupnarayanpur, District Burdhwan,
West Bengal
... .... Respondents
CORAM: HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY
For the Appellant : Mr. Ganesh C. Jha, Advocate
For the Respondents :
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Order No. 16 / Dated : 08.04.2025
1. Insurance-Company is in appeal against the judgment and award of
compensation in M.A.C.T. Case No. 14/2011, whereby and
whereunder, the compensation of Rs. 7,02,513/- with interest @
8% per annum has been awarded under Section 166 of the Motor
Vehicles Act, 1988 and the liability has been fixed on the
Insurance-Company to pay the compensation amount.
2. This appeal has been preferred mainly on the ground that
the offending vehicle bearing registration no. JH 15 B/ 7100
was registered as a private vehicle and was insured as such
by the Appellant-Insurance Company vide Policy No.
332401/31/2010/2940 with effect from 26.12.2009 to 25.12.2010.
The insurance was for private use only but was given on hire for
three years to General Manager, Lead Bank Office, State Bank of
2025:JHHC:10854
India, Jamtara.
3. The Manager of the Lead Bank was examined on behalf of the
Insurance-Company as O.P.W-3, wherein he has proved the
agreement dated 19.10.2014 for 36 months between Abhay Kumar
Roy and Dinbandhu, the Chief Manager Lead, Jamtara which has
been marked as Ext. C. From Ext. C, it will be evident that the
vehicle was being plied for commercial purpose at the time of
accident with hire charge @ 6,500/- per month with effect from
21.12.2009.
4. It is submitted that plying for commercial use of a vehicle which
was under the insurance cover for private use only amounted to
fundamental breach of insurance policy. Reliance is placed on
(2010) 8 SCC 620 (Eshwarappa @ Maheshwarappa & Anr. Vs.
C.S. Gurushanthappa & Anr.), Indra Devi & Ors. Vs Bagada
Ram & Anr. (2010) 13 SCC 249 and (2007) 13 SCC 476
(Oriental Insurance Co. Ltd. Vs. Premlata Shukla).
5. In the present appeal the owner of the vehicle has not appeared,
despite the notice having been validly served and consequently the
appeal is being heard ex-parted.
6. The main point for determination in the present appeal is whether
the vehicle being given on hire to the bank amounted to
fundamental breach of insurance policy in terms of Section 149(2)
of the Motor Vehicle Act, 1988?
7. From perusal of Ext. A it is evident that Mahindra Bolero bearing
Registration No. JH 15B-7100 in question was insured at the time
of accident and was private car liability only policy - Zone B
effective from 26.12.2009 to 25.12.2010, whereas the accident
took place on 14.10.2010.
8. In view of the evidence on behalf of the Insurance Company that
the vehicle was given on hire to the Bank, and therefore it can be
safely be concluded that it was being used for commercial use and
therefore was a fundamental breach of the insurance policy.
2025:JHHC:10854
9. Under the circumstance the appellant insurance company shall
have a right of recovery against the owner of the vehicle after
making full and final payment of the compensation amount to the
Tribunal for disbursement to the claimants within a month of this
order. The statutory amount shall be remitted to the Tribunal for
being paid to the claimants.
Miscellaneous Appeal accordingly stands disposed of.
Pending I.A., if any, stands disposed of.
(Gautam Kumar Choudhary, J.)
Pawan/AKT
