Branch Manager vs Jatia Behera & Anr
2023 Latest Caselaw 8344 Ori

Signature Not Verified
Digitally Signed
Signed by: SANGRAM DAS
Reason: Authentication
Location: High Court of Orissa, Cuttack
Date: 16-Aug-2023 17:03:25




                                          IN THE HIGH COURT OF ORISSA AT CUTTACK

                                                          MA No.81 of 2002

                                 Branch Manager, United India               ....            Appellant
                                 Insurance Co.Ltd.
                                                                             Mr.P.Sinha, Advocate
                                                              -versus-
                                 Jatia Behera & Anr.                        ....        Respondents



                                             CORAM:
                                             SHRI JUSTICE B. P. ROUTRAY
                                                            ORDER

01.08.2023 Order No.

15. 1. The matter is taken up through hybrid mode.

2. Heard Mr.Sinha, learned counsel for the Appellant.

3. No one entered appearance for the Respondents despite valid service of notice on them.

4. Present appeal by the Insurer is directed against judgment dated 7th December, 2001 of 1st MACT, Mayurbhanj, in MACT Misc Case No.24 of 1991, wherein compensation to the tune of Rs.72,852/- has been granted along with interest @9% per annum with effect from the date of filing of the claim application on account of death of the deceased in the motor vehicular accident on 29th January, 1991.

5. Mr.Sinha submits for the Insurer-Appellant that the insurance policy in respect of offending vehicle, i.e. Truck bearing registration No. OSC-4619 was not valid on the date of accident and the earlier

Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, Cuttack Date: 16-Aug-2023 17:03:25

policy issued in respect of said vehicle was cancelled much prior to the accident.

6. The involvement of the offending vehicle and negligence on the part of its driver as well as death of the deceased in the motor- vehicular dated 29th January 1991 are not disputed by the Insurer. Moreover, the same are established on record as per the evidences adduced from the side of the Claimants. The only point submitted before this Court is that, insurance policy No. 030400/01797(1797) Certificate No. 01860/90 (034528) was initially issued on 14th December 1990 through payment of premium by cheque bearing No. 094669 dated 14th December 1990. Said cheque was dishonoured for insufficient fund. According to the Insurer, the policy was cancelled by order dated 28th December 1990 and intimation was sent to the RTO as well as the owner of the vehicle.

7. The Insurer has filed the copies of intimation dated 28th December 1990 allegedly sent to the owner namely Rajdeep Singh and intimation dated 3rd January 1991 to the RTO, Cuttack regarding cancellation of insurance policy, under Ext.D & E. One witness viz, O.P.W.1 was also examined on behalf of the Insurer, who is one of its officers. But no such postal communication receipts are produced by the Insurer to satisfy their contention that such intimation of cancellation of policy has in fact been sent to the owner and the RTO despite all such averments and evidences produced by the Insurer. O.P.W.1 also did not say the mode of service of such intimation of cancellation policy on the owner as well as the RTO.

Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, Cuttack Date: 16-Aug-2023 17:03:25

8. Law is well-settled that in absence of valid service of intimation of cancellation of policy, the liability of the Insurer cannot be absolved to indemnify the compensation amount. In the instant case, as stated above, no document has been produced to reveal proof of service of intimation of cancellation of policy either on the owner or on the Registering Authority. Therefore, such contentions advanced on behalf of the Insurer to absolve his liability, particularly when the initial issuance of policy is admitted, are found unsustainable. Accordingly, the liability saddled on the Insurer by the Tribunal is confirmed.

9. On the question of quantification of compensation amount, no valid ground is seen in favour of the Insurer to interfere with the same. However, the rate of interest is reduced to 6% from 9%.

10. In the result, the appeal is disposed of with a direction to Appellant-Insurer to deposit the entire compensation of Rs.72,852/- (Seventy two thousand eight hundred fifty two) along with interest @6% per annum from the date of filing of the claim application within a period of three months from today; where-after the same shall be disbursed in favour of the claimants on such terms and proportion to be fixed by the Tribunal.

11. The copies of depositions and exhibits as produced by Mr.Sinha in course of hearing are kept on record.

12. The Appellant-Insurer is permitted to take back the entire amount deposited by this Court along with accrued interest as well as the statutory amount with accrued interest on proper application.

Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Reason: Authentication Location: High Court of Orissa, Cuttack Date: 16-Aug-2023 17:03:25

13. Urgent certified copy of this order be granted on proper application.

( B.P. Routray) Judge S.Das