Madhya Pradesh High Court
The Oriental Insurance Co. Ltd. vs Meena on 1 April, 2022
Author: Anil Verma
HIGH COURT OF MADHYA PRADESH, BENCH AT INDORE
MA No. 366/2021
Indore, dated 1/4/2022
Shri Sudhir Dandwate learned counsel for appellant.
Shri Aniket Naik learned counsel for respondent no. 1.
None for respondents no. 2 & 3 though served.
Notice to respondent no.4 is still awaited.
Both the parties heard on IA No. 960/2021 which is an
application under Order 41 Rule 5 of CPC for staying the execution
of the impugned award.
Counsel for appellant submits that at the time of accident the
vehicle was not insured with the insurance company. The cheques
which were given towards premium when presented for collection
was dishonoured and policy issued was cancelled from inception.
Therefore, the appellant insurance company is not liable for
compensation. The accident was taken place after cancellation of
policy. The appellant has filed this appeal and he is hopeful for its
success. Therefore, counsel for appellant prays for staying the
execution of the impugned award.
Per contra learned counsel for respondent no.1 prays for
rejection of IA by submitting that below tribunal has considered all
the legal aspects and passed valid award, therefore, execution of the
award cannot be stayed.
HIGH COURT OF MADHYA PRADESH, BENCH AT INDORE
MA No. 366/2021
Both the parties heard at length and perused all the relevant
documents.
Learned counsel for respondent no.1 placed reliance upon
judgment of the Apex court in case of Oriental Insurance Co.
Ltd. Vs. Inderjit Kaur and other reported in AIR 1998 SC 588;
judgment of Allahabad High court in case of National Insurance
Co. Ltd. Vs. Jitendra Kumar reported in AIR 2009 Allahabad
70; in case of Ge Money Financial Services Pvt Ltd. Vs.
Subhadra Devi and others reported in 2012 SCC Online Del
6152, Division Bench of Kerala High Court in the case of The
Oriental Insurance Company Ltd Vs. B. Sivankuty and others
reported in AIR 2006 Kerala 20, judgment of Chhattisgarh High
court in case of National Insurance Co. ltd. Vs. Rajendra
Mourya reported in AIR 2007 Chhattisgarh 138 and contended
that accident took place after cancellation of insurance policy but
within period specified in policy and insurance company issued
policy after receiving premium therefore, insurance company is
liable for such compensation and remedy of insurer to recover the
amount lies against the insured/owner of offending vehicle.
Learned counsel for appellant placed reliance upon judgment
of the Hon'ble Apex court in the case of Daddappa and others Vs.
HIGH COURT OF MADHYA PRADESH, BENCH AT INDORE
MA No. 366/2021
Branch Manager, National Insurance Co. Ltd. Reported in 2008
ACJ 581 in that case the Hon'ble Apex court has held as under:-
27. A beneficial legislation as is well known should not
be construed in such a manner so as to bring within its
ambit a benefit which was not contemplated by the
legislature to be given to the party. In Regional Director,
Employees' State Insurance Corporation, Trichur Vs.
Ramanuja Math Industries, AIR 1985 SC 278, this Court
held:
"We do not doubt that beneficial
legislations should have liberal construction
with a view to implementing the legislative
intent but where such beneficial .legislation
has a scheme of its own there is no warrant
for the Court to travel beyond the scheme and
extend the scope of the statute on the pretext
of extending the statutory benefit to those
who are not covered by the scheme."
We, therefore, agree with the opinion of the
High Court.
28. However, as the appellant hails from the
lowest strata of society, we are of the opinion
that in a case of this nature, we should, in
exercise of our extra-ordinary jurisdiction under
Article 142 of the Constitution of India, direct
the Respondent No.1 to pay the amount of claim
to the appellants herein and recover the same
from the owner of the vehicle viz., Respondent
No.2, particularly in view of the fact that no
HIGH COURT OF MADHYA PRADESH, BENCH AT INDORE
MA No. 366/2021
appeal was preferred by him. We direct
accordingly.
In view of the law laid down by the Hon'ble Apex court, IA
No. 960/2021 is partly allowed. The appellant/insurance company
is directed to deposit 50% of the awarded amount together with
interest before the below tribunal within 6 weeks from today, then
operation and execution of the impugned award shall remain stayed
till final disposal of this appeal. On such deposit being made, the
below tribunal shall invest the amount in short term fixed deposit in
a nationalized bank. However, disbursement of the amount in
favour of claimant shall be subject to orders passed by this Court.
C.C. as per rules.
(ANIL VERMA)
JUDGE
BDJ
Digitally signed by
BHUVNESHWAR DATT JOSHI
Date: 2022.04.04 11:30:48
+05'30'
