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2004 DIGILAW 851 (PNJ)

Rita v. Haroon Ali

2004-08-09

M.M.KUMAR

body2004
Judgment M.M.Kumar, J. 1. This is an application with the prayer that the Insurance Company-respondent No. 3 which has insured Car N o. UTL-284 be directed to satisfy the award dated Ist August, 1998. According to the findings recorded by the Tribunal, the Insurance Company had not been held liable on the ground that the owner of the car which has insured it for personal use was, using it as a taxi. On the aforementioned basis, the owner or the driver has been held liable by the Tribunal. 2. Mr. Ajit Attri, learned Counsel appearing for the claimant-applicant has argued that in case of any breach of the clause of the insurance cover the claim of the claimants cannot be postponed and the Insurance Company must satisfy the award. Merely because the owner has contravened the condition of the insurance policy would not constitute a ground to deny the satisfaction of the award to the claimant-applicant. In support of h is submissions, t he 1 earned Counsel has p laced reliance on a judgment of three Judges Bench of the Supreme Court in the case of National Insurance Co. Ltd v. Swaran Singh and Ors., (2004-1)136 P.L.R. 510 (S.C.). 3. Mr. Sumeet Goel, learned Counsel for the respondent has argued that the Insurance Company shall be held entitled to make recovery from the owner and in any case the application is belated as the Insurance Company would end up paying interest from Ist August, 1998, the date of the award, till the date of this application. In support of his submission, the learned Counsel has placed reliance on Oriental Insurance Co. Ltd. v. Nanjappan and Ors., 2 (2004-2) 137 P.L.R. 51 (S.C.). 4. After hearing the learned Counsel for the parties, I am of the considered view that this application deserves to be allowed. The applicant-claimants are entitled to disbursement of the awarded amount and the claim is to be satisfied by the Insurance Company i.e., Oriental Insurance Company, Divisional Office, Karnal, who has insured the car No. UTL-284 who may in turn make recovery from the owner/driver in accordance with the law. The application stands disposed of. The Insurance Company shall deposit the awarded amount with interest with the Tribunal within a period of three weeks from today which shall be disbursed to the applicant-claimants immediately. The claimants shall furnish surety for 50 per cent of the amount.