Punjab-Haryana High Court
Oriental Insurance Co. Ltd vs Khurshid And Anr on 23 April, 2024
Neutral Citation No:=2024:PHHC:054993
CWP-940-2012 (O&M). -1- 2024:PHHC:054993
IN THE PUNJAB AND HARYANA HIGH COURT AT
CHANDIGARH
101
CWP-940-2012 (O&M).
Date of Decision: 23.04.2024.
ORIENTAL INSURANCE COMPANY LIMITED
.. Petitioner
Versus
KHURSHID AND ANOTHER
... Respondents
CORAM: HON'BLE MR. JUSTICE VINOD S. BHARDWAJ.
Present: Mr. Dishant Jindal, Advocate, for
Mr. Ashwani Talwar, Advocate,
for the petitioner.
Mr. Munfaid Khan, Advocate,
for respondent No.1.
VINOD S. BHARDWAJ, J. (ORAL)
CM-633-CWP-2024
The present application has been filed under Section 151 of the
Code of Civil Procedure, 1908, for fixing actual date of hearing in the main
writ petition which was admitted vide order dated 04.09.2012.
Notice in the application to the counsel for the non-
applicant/respondent No.1.
Accordingly, for the reasons stated in the present application,
the same is allowed. The main writ petition is taken on board for hearing
today itself.
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Main case
The instant writ petition has been filed for quashing of order
dated 18.10.2011 (Annexure P-1) passed by the Permanent Lok Adalat
(Public Utility Services), Gurgaon, whereby the petitioner-Insurance
Company has been directed to pay a sum of Rs.4,18,796/- to the claimant-
respondent No.1.
Briefly summarized, the facts of the present case are that the
respondent No.1-applicant is the registered owner of Multi Axle (Trailer)
bearing Registration No.HR-55M-9870 which was purchased on
08.04.2011 from Pascos G.T. Karnal Road, Kundli, District Sonepat. The
said vehicle was insured with the respondent vide policy
No.271601/31/2012/184, vide cover Note No.270000157081 valid from
08.04.2011 to 07.04.2012 with an insured declared value (IDV) of
Rs.22,50,000/-. It was averred that the Gear Box of the above vehicle was
troubling to the respondent No.1-applicant while driving. It is further
averred that on 03.05.2011, the respondent No.1-applicant started his
journey from Salahadi and proceeded to Sohna on the above mentioned
vehicle but on way the above mentioned vehicle met with an accident and
climbed on the foot path due to the defect of Gear Box which was not
properly functioning resulting in damaging of the vehicle. The information
was sent to the Insurance Company and Surveyor of the company visited
the spot and advised the respondent No.1-applicant to get repaired the
above mentioned vehicle from V.K. Motors Bye Pass, Delhi Alwar Road,
Bye Pass Sohna, District Gurgaon and that the insurance company shall
defray/reimburse cost of said repair. The vehicle was thus brought to the
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Workshop on the same day. The repair charges were assessed by V.K.
Motors as Rs.2,57,450/-. The expenses incurred by the respondent No.1-
applicant were thereafter sought for from the petitioner-Insurance
Company, however, when the same was not released, an application under
Section 22-C of the Legal Services Authorities Act, 1987 was preferred by
the respondent No.1-applicant.
The petitioner-Insurance Company filed its reply disputing the
claim and averring that the respondent No.1-applicant did not have a valid
permit on the date of the alleged accident and that the said the permit was
effective from 06.05.2011 to 01.05.2012, hence, the vehicle was being
plied in violation of Section 66, Sub-Section (1) of the Indian Motor
Vehicles Act and as such the respondent No.1-applicant was not entitled to
any claim.
The Permanent Lok Adalat (Public Utility Services), Gurgaon,
however, allowed the application vide award dated 18.10.2011 and directed
the petitioner-Insurance Company to pay a sum of Rs.4,18,796/- to the
applicant-respondent No.1.
Aggrieved thereof, the present writ petition was filed.
At the stage of issuance of notice of motion, an argument was
advanced by the petitioner-Insurance Company that mandatory procedure as
prescribed under Section 22-C (4) to (8) of the Legal Services Authorities
Act, 1987 was not followed and the execution of the award was thereafter
stayed vide order date 01.02.2012.
Learned counsel for the petitioner-Insurance Company argues
that the conciliation proceedings stipulated under Section 22-C (4) to (7) are
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mandatory as per the judgment of the Hon'ble Supreme Court in the matter
of Canara Bank Vs. G. Jayaram, reported as (2022) 7 SCC 776 and that in
the present case, the said procedure had not been followed and till such time
the conciliation proceedings failed to fructify in a resolution of the dispute,
the adjudicatory powers under Section 22-C (8) the Legal Services
Authorities Act, 1987 could not have been invoked.
Learned counsel for the respondent No.1-applicant does not
dispute the said position in law.
Accordingly, without commenting anything on the merits of
the case, the present writ petition is allowed. The order dated 18.10.2011
(Annexure P-1) passed by the Permanent Lok Adalat (Public Utility
Services), Gurgaon, is set aside. The matter is remanded back to the
Permanent Lok Adalat (Public Utility Services), Gurgaon for passing the
order afresh after following the procedure prescribed under the Legal
Services Authorities Act, 1987.
The parties are directed to appear before the Permanent Lok
Adalat (Public Utility Services), Gurgaon on 20.05.2024.
Needless to mention that the dispute being old, the Permanent
Lok Adalat (Public Utility Services), Gurgaon shall expeditiously decide
the said application and preferably within a period of six months from the
date of appearance of the parties before it.
April 23, 2024. (VINOD S. BHARDWAJ)
raj arora JUDGE
Whether speaking/reasoned : Yes/No
Whether reportable : Yes/No
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