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2019 DIGILAW 111 (GAU)

New India Assurance Co. Ltd. v. Bina Saikia

2019-01-25

N.KOTISWAR SINGH

body2019
ORDER : N. Kotiswar Singh, J. 1. Heard Mr. Pfosekho, learned counsel for the applicant as well as Mr. Imtiwapang, learned counsel for respondent Nos. 1 to 4 and Ms. Arepla, learned counsel for respondent No. 5. 2. This application is an illustration of a classic case of how a public statutory body, primarily tasked to provide benefits to victims of accidents or their relative can be so mechanical and pedantic in their approach to human sufferings. It also indicates utter and indifferent attitude of the officials in dealing with human tragedies bordering to callousness. It indicates how beneficial schemes can get stuck in a maze of procedures delaying benefits to the victims of accident and their relatives. This is also an example how people can lose faith in the legal system for the delay occasioned. 3. An accident occurred on 16.06.2015, in which a bystander on a road side was knocked down by a speeding vehicle who ultimately succumbed to his injuries after undergoing treatment in the hospital. On an action brought for payment of compensation under the Motor Vehicles Act, 1988, before the Motor Accidents Claims Tribunal, Kohima an award was made on 11.07.2017 for payment of Rs. 13,44,000/- (Rupees thirteen lakh forty four thousand only) along with interest, to be paid by the Insurance Company, applicant herein to the dependants of the deceased. There has been a claimed delay of 325 days though the claimants contend that delay is more than that. 4. Be that as it may, the Insurance Company have sought to explain the delay of 325 days by narrating the chain of events as mentioned in para No. 3 of the present application. The said para No. 3 as stated in the application is reproduced herein below: "3. That the delay in filing the accompanying appeal petition is not due to negligence or lapses on the part of the applicants but due to the following reasons: (a) That on 01.10.2017 a Certified True Copy (CTC) of the said Judgment and Order dated 11.07.2017, was received by the Divisional Manager, New India Assurance Company from the Peshkar, MACT, Kohima, Nagaland. After perusal and on going through the Judgment and Order dated 11.07.2017. On 04.09.2017, the same was forwarded to a penal lawyer of the applicant No. 2 at Dimapur for legal opinion. After perusal and on going through the Judgment and Order dated 11.07.2017. On 04.09.2017, the same was forwarded to a penal lawyer of the applicant No. 2 at Dimapur for legal opinion. (b) That on 07.09.2017 the penal lawyer gave his legal opinion on the Judgment and Order dated 11.07.2017. (c) The applicant No. 2 on 11.09.2017 along with the legal opinion, the Judgment and Order dated 11.07.2017 including the case records forwarded it to the Administrative Officer, Dibrugarh Divisional Office for further direction and necessary action. (d) The Administrative Officer, Dibrugarh Divisional Office received the same on 14.09.2017 and after going through the records, the legal opinion and the Judgment and Order dated 11.07.2017, it was of the opinion that the matter be transferred to the North East Regional Office, Guwahati for further action and direction. (e) That on 19.09.2017, the applicant No. 2 wrote a letter to the Manager, T.P. Hub, Guwahati, requesting the authority for preferring a revision petition before the Gauhati High Court, Kohima Bench. The same was received on 22.092017. (f) That on 24.09.2017, the applicant No. 2 has requested the Manager, T.P. Hub, Guwahati to detail and insurance investigator to do necessary investigation on the instant case. (g) That on 25.09.2017 the Deputy Manager, North East Regional Office, Guwahati to the Senior Divisional Manager Dimapur recommending for filing appeal in the High Court at Kohima. (h) That on 28.09.2017 the letter recommending to file an appeal was received by the applicant No. 2. (i) That on 29.09.2017 the applicant No. 2 has forwarded a photo copy of the legal opinion and the Judgment and Order dated 11.07.2017 to the applicant No. 1, requesting the applicant No. 1 to give opinion and direction to the matter. (j) That on 04.10.2017 the appellant No. 2 has sought permission and legal opinion from the Legal Department North East Regional Office, Guwahati for approaching the High Court for preferring revision/review/appeal against the Judgment & Order dated 11.07.2017 in MAC Case No. 07/2016. (k) That on 06.10.2017 the applicant No. 2 wrote a letter to the Senior Divisional Manager at Dibrugarh, Assam to forward the file, case record, judgment and order dated 11.07.2017 from the Divisional Officer, Dibrugarh, Assam to Legal Department North East Regional Office, Guwahati, which was received on 09.102017. (k) That on 06.10.2017 the applicant No. 2 wrote a letter to the Senior Divisional Manager at Dibrugarh, Assam to forward the file, case record, judgment and order dated 11.07.2017 from the Divisional Officer, Dibrugarh, Assam to Legal Department North East Regional Office, Guwahati, which was received on 09.102017. (l) That the Administrative Officer, Dibrugarh of the appellant's office on 10.10.2017 forwarded the legal opinion, case file and judgment & Order dated 11.07.2017 in MAC Case No. 07/16 along with its view and opinion to fill appeal to the Legal Department North East Regional Office, Guwahati for necessary action. (m) That the Insurance Investigator submitted his investigation report on 20.10.2017 to the Manager, T.P. Hub, Guwahati, And on 21.10.2017, the Manager T.P. Hub, Guwahati forwarded the investigation report to the applicant No. 2 as the case pertains to the Divisional Office, Dimapur, which was received on 26.10.2017 by the applicant No. 2. (n) That after receiving the investigation report of the Insurance Investigator on 26.10.2017 the applicant No. 2 had forwarded it to the Legal Department North East Regional Office, Guwahati. (o) That on 27.10.2017 Legal Department forwarded the investigation report to the appellant No. 1 at New Delhi of the appellants company for direction and necessary action. Which was duly received on 31.10.2017. (p) That on 01.11.2017 the appellant No. 1 forwarded the investigation report to the Legal Department at Delhi for opinion. Which was received on 06.11.2017. (q) That on receipt of the investigation report the Legal Department at Delhi of the appellant company requested the appellant No. 2 to furnish all necessary records, claims petition, judgment and order dated 11.072018 and on 07.11.2017 the appellant No. 1 requested the Chief Regional Manager, NERO to furnish the same at the earliest. Which was received on 12.112017. (r) That on 13.112017 the Chief Regional Manager, NERO collected all the required documents as requested from the Legal Department North East Regional Office, Guwahati and also from the appellant No. 2 after which the compilation of required documents was sent to the appellant No. 1 which was duly received on 21.112017. (s) That on 22.11.2017 the appellant No. 1 forwarded the compilation of documents including the judgment and Order dated 11.07.2017, to the Legal Department at Delhi, which was duly received by the Legal Department, Delhi on the same day. (s) That on 22.11.2017 the appellant No. 1 forwarded the compilation of documents including the judgment and Order dated 11.07.2017, to the Legal Department at Delhi, which was duly received by the Legal Department, Delhi on the same day. (t) That on 24.11.2017 the Legal Department at Delhi of the appellants company forwarded the claim files, the judgment and other compilation of documents seeking for legal opinion from an advocate of Delhi High Court, New Delhi. (u) That on 01.12.2017 the advocate at Delhi gave his legal opinion to the Legal Department at New Delhi of the appellants company to prefer an appeal. (v) That on 03.11.2017 the Legal Department Delhi called for a meeting with the appellant No. 1 on 06.12.2017. And on 06.12.2017 the Legal Department Delhi in consultation with the appellant No. 1 decided to pursue the matter before the High Court, Kohima Bench. (w) That immediately on 07.12.2017 the appellant No. 1 advised and directed the Chief Regional Manager, NERO Guwahati to take necessary action for preferring an appeal before the High Court, Kohima Bench. Which was received on 13.122017. (x) That on 14.122017 the Chief Regional Manager, NERO Guwahati forwarded the direction and advice to the applicant No. 2, which was received on 20.12.2017. (y) That the appellant on going through the direction and advice of the appellant No. 1 received through the North East Regional Office, Guwahati, besides the investigation report the appellant No. 2 found out that the calms file, the Judgment and Order dated 11.07.2017 and other documents i.e., the compilation of the documents was missing. (z) That immediately on 21.12.2017 the appellant No. 2 notified the Chief Regional Manager, NERO Guwahati that the appellant No. 2 has not received the compilation of documents including the calms file, the Judgment and Order dated 11.07.2017 and other documents. Which was received on 27.12.2017. (aa) On 28.12.2017 the Chief Regional Manager, NERO Guwahati notified the appellant No. 1 to send back the compilation of documents. Which was received by the appellant on 03.012018. (bb) That on 04.01.2018 the appellant No. 1 requested the Legal Department Delhi to furnish the compilation of documents including case records, claims file, judgment & order date 11.07.2017. (aa) On 28.12.2017 the Chief Regional Manager, NERO Guwahati notified the appellant No. 1 to send back the compilation of documents. Which was received by the appellant on 03.012018. (bb) That on 04.01.2018 the appellant No. 1 requested the Legal Department Delhi to furnish the compilation of documents including case records, claims file, judgment & order date 11.07.2017. But inadvertently the compilation of documents could not be traced for over a month and only on 09.02.2018 the same could be traced and only on 12.02.2018 the compilation of documents was sent to the Chief Regional Manager, NERO, Guwahati, which was duly received on 16.02.2018. (cc) That on 19.02.2017, the Chief Regional Manager, NERO Guwahati forwarded the compilation of documents including claims file, the Judgment & Order dated 11.07.2017 in MAC Case No. 07/2016 along with the investigation report and the connected documents to the appellant No. 2 at Dimapur, which was received on 23.02.2018 by the appellant No. 2 at Dimapur. (dd) That the appellant No. 2 after receiving the legal opinion, the claims file, the Judgment & Order dated 11.07.2017 in MAC Case No. 07/2016 along with the investigation report and the connected documents forwarded the same to the legal penal to the appellant company at Dimapur on 26.02.2018 to prefer an appeal. (ee) That on the same day the 26.02.2018 the legal penal for the appellants company received the claims file, the Judgment & Order dated 11.07.2017 in MAC Case No. 07/2016 along with the investigation report and the connected documents. (ff) But unfortunately the legal penal of the appellants company had to go out of station for some personal difficulties and only on his return on 27.03.2018, the legal penal expressed his inability to prefer an appeal due to some personal problem and handed over the legal opinion, the claims file, the Judgment & Order dated 11.07.2017 in MAC Case No. 07/2016 along with the investigation report and the connected documents to the appellant No. 2, which was duly received on 28.03.2018. (gg) That again on 30.03.2018 the appellant No. 2 approached another lawyer at Dimapur to prefer an appeal before the High Court Kohima Bench in respect of the instant case, the same was rejected. (hh) That on 02.04.2018 the appellant No. 2 seek the advice of the Chief Regional Manager, NERO Guwahati as the matter was complicated case, which was received on 06.04.2018. (hh) That on 02.04.2018 the appellant No. 2 seek the advice of the Chief Regional Manager, NERO Guwahati as the matter was complicated case, which was received on 06.04.2018. (ii) The Chief Regional Manager, NERO Guwahati in its reply on 10.04.2018 suggesting it will try to make arrangement of a lawyer from Guwahati. (jj) But unfortunately the Chief Regional Manager, NERO Guwahati failing to engaged a lawyer from Guwahati on 20.04.2018 it expressed that it could not find a lawyer who was willing to travel to Kohima due to the bad road condition, which was received on 26.04.2018 by the appellant No. 2. (kk) On receiving the knowledge of the inability to engaged a lawyer from Guwahati, the appellant No. 2 on 30.04.2018 detailed its officer to engaged a lawyer stationed at Kohima. (ll) That on 03.05.2018 the officer of the appellant No. 2 approached the counsel at Kohima for preferring and appeal before the Gauhati High Court Kohima Bench. (mm) And on receiving the consent of the present counsel at Kohima the appellant No. 2 on 04.05.2018 forwarded the legal opinion, the claims file, the Judgment & Order dated 11.072017 in MAC Case No. 07/2016 along with the investigation report and the connected documents to the counsel at Kohima to prefer an appeal before the High Court, Kohima Bench. Which was duly received on 05.05.2018 by the counsel at Kohima. (nn) That on 04.06.2018 the counsel for the applicant after preparing the draft appeal memo along with the accompanying interlocutory applications informed the applicant No. 2 to collect the same for approval, vetting/authentication from the competent authority. (oo) That on 07.06.2018, the applicant No. 2 collected the draft appeal memo along with the interlocutory applications from the counsel at Kohima. (pp) That on 09.06.2018 forwarded the draft appeal memo along with the interlocutory applications to the Chief Regional Manager, NERO Guwahati for approval and receive the same on 12.062018. (qq) The draft appeal memo was forwarded by the Chief Regional Manager, NERO Guwahati to the Legal Department at Guwahati for approval. (rr) That not being satisfied with the draft of the appeal memo Legal Department at Guwahati send back the same to the appellant No. 2 for redrafting the appeal memo again. (qq) The draft appeal memo was forwarded by the Chief Regional Manager, NERO Guwahati to the Legal Department at Guwahati for approval. (rr) That not being satisfied with the draft of the appeal memo Legal Department at Guwahati send back the same to the appellant No. 2 for redrafting the appeal memo again. (ss) That on 21.06.2018 the appellant intimated the counsel at Kohima to prepare another draft of the appeal momo for approval from the Chief Regional Manager, NERO Guwahati and the Legal Department at Guwahati. (tt) That the counsel at Kohima re-drafted the appeal memo and on 19.07.2018 asked the appellant No. 2 to collect the same for approval. (uu) That on 20.07.2018 the Chief Regional Manager, NERO Guwahati received the draft of the appeal and forwarded it to the Chief Regional Manager, NERO Guwahati. (vv) On 26.07.2018 the Chief Regional Manager, NERO Guwahati received the draft appeal memo and forwarded it to the Legal Department, Guwahati. (ww) After going through the draft of the appeal memo the legal Department, Guwahati make some correction and added some grounds and the same was forwarded to Chief Regional Manager, NERO Guwahati on 31.07.2018. (xx) The Chief Regional Manager, NERO. Guwahati forwarded the edited appeal memo to the appellant No. 2 on 02.08.2018, which was received by the appellant No. 2 on 07.08.2018. (yy) Immediately on receiving the edited draft appeal memo from the Chief Regional Manager, NERO Guwahati the appellant No. 2 on 08.08.2018 forwarded the same to the counsel at Kohima. (zz) That on receiving the edited appeal memo the counsel started preparing the final appeal memo along with accompanying interlocutory applications. (aaa) That on 03.09.2018, the counsel asked the appellant No. 2 to collect the appeal memo and the accompanying interlocutory application to be vetted/authenticated by the competent authority for filing before the Hon'ble Gauhati High Court Kohima Bench. (bbb) That on 04.09.2018 the applicant collected the appeal memo and the accompanying interlocutory application to be vetted/authenticated by the competent authority at Dimapur. (ccc) That on 06.09.2018 the appellant No. 2 forwarded the appeal memo to the Chief Regional Manager, NERO Guwahati for approval and authorization. (ddd) That on 15.09.2018 the appellant No. 2 received the green signal from the Chief Regional Manager, NERO Guwahati authorizing the appellant No. 2 to prefer an appeal before the Hon'ble Gauhati High Court Kohima Bench. (ccc) That on 06.09.2018 the appellant No. 2 forwarded the appeal memo to the Chief Regional Manager, NERO Guwahati for approval and authorization. (ddd) That on 15.09.2018 the appellant No. 2 received the green signal from the Chief Regional Manager, NERO Guwahati authorizing the appellant No. 2 to prefer an appeal before the Hon'ble Gauhati High Court Kohima Bench. The applicant No. 2 after being duly vetted/authenticated by the competent authority the power and the accompanying interlocutory application the same was handed over to the counsel for the applicant/appellant at Kohima on 18.09.2018 for filing before this Hon'ble High Court. (eee) That accordingly in the process of investigation, awaiting for legal opinion, legal and higher approval and preparing the appeal petition and the accompanying interlocutory applications there has been a delay of 325 days in preferring the connected appeal petition. (fff) That in view of the aforesaid facts and circumstances, there is delay of 325 days in preferring the connected appeal." 5. The chain of events as stated in chronological order in the aforesaid paragraph, however, does not indicate any substantial cause which would occasion the delay of 325 days in filing the appeal. On the other hand, what it disclosed is the manner in which the officials of the Insurance Company had proceeded to deal with the matter in a very pedantic and mechanical manner unconcerned with the sufferings of the family members of me victim. 6. As mentioned in the chronological events, after the award was made on 11.7.2017, the panel lawyer of the Insurance Company based in Dimapur gave his opinion on 07.09.2017, which was then forwarded to Dibrugarh Divisional Office. The Divisional Office in its wisdom decided it to transfer the matter to the Northeast Regional Office at Guwahati for further action. In the meantime, the Dimapur Office requested the Guwahati Office for causing the Insurance Investigator to do the necessary investigations. On 25.9.2017, the Deputy Manager, Northeast Regional Office, Guwahati wrote to the Senior Divisional Manager, Dimapur recommending filing of appeal before the High Court at Kohima Bench. Normally, under such circumstances, the appeal ought to have been filed sometime in October, 2017. However, things did not end there. For unspecified reasons in spite of recommendation made by the Deputy Manager, Northeast Office at Guwahati for filing appeal, the Dimapur Office again sought for legal opinion on 04.10.2017. Normally, under such circumstances, the appeal ought to have been filed sometime in October, 2017. However, things did not end there. For unspecified reasons in spite of recommendation made by the Deputy Manager, Northeast Office at Guwahati for filing appeal, the Dimapur Office again sought for legal opinion on 04.10.2017. Thus, the Dimapur Office again wrote to the Senior Divisional Manager at Dibrugarh and there is a series of communications between the Dibrugarh Office and Kohima Office. Ultimately, the Legal Department, Northeastern Regional Office at Guwahati sought for instruction from the Head Office at New Delhi, without assigning any reason what necessitated seeking instructions from Delhi when legal opinions were already available locally for filling the appeal. At New Delhi, the matter was again referred for legal opinion. After various rounds of communication with Guwahati Office, the Legal Department of the Insurance Company sought for legal opinion from an Advocate of Delhi High Court, who gave his opinion on 01.12.2017 for filing on an appeal. However, the matter did not end there. There was another round of legal consultation held in Delhi. In spite of such opinions, there were further several rounds of consultations seeking opinions etc. with the Northeast Regional Office at Guwahati. Several meetings were again held for engagement of lawyer at Guwahati. Thereafter, there were several rounds of meetings for the preparation of the draft memo of appeal at various levels. 7. From the above narration of facts what one would expect is that the matter would involve some serious disputed questions not only of complicated facts but also substantial questions of law, which perhaps could have justified such series of consultative process at different levels of the Organization even requiring consultation at Delhi. 8. The learned counsel for the applicant has submitted that the award was made in absence of the Insurance Company and as such, has submitted that a serious prejudice has been caused to the Insurance Company by passing the award. If that is so, the Court fails to understand why the Insurance Company could not have filed the appeal earlier. 8. The learned counsel for the applicant has submitted that the award was made in absence of the Insurance Company and as such, has submitted that a serious prejudice has been caused to the Insurance Company by passing the award. If that is so, the Court fails to understand why the Insurance Company could not have filed the appeal earlier. Though this Court is not entering upon the merit of the case and is to confine only to the circumstances which led to the delay in filing the appeal, this Court has noted that the learned counsel for the applicant has not been able to indicate any substantial issue which may have arisen in this case before the Tribunal, which would require such detailed consultative process at various levels of the appellant company. It is also not the case of the Company that the vehicle was not insured and as such, no liability could be fastened upon the Insurance Company. The other ground mentioned by the ld. Counsel for the applicants is that the I.O. of the case was not examined. But this is an issue about which there is nothing unusual and is raised in many cases. Be that as it may, what this Court would like to highlight is that no such serious questions of law or fact have been brought to the notice of this Court, which would have required such extensive and prolonged consultative process, requiring legal opinion not only in Dimapur but in Guwahati, Dibrugarh and also in Delhi, occasioning such a delay. 9. The chain of events as mentioned in para No. 3 of the application merely discloses a very mechanical and pedantic approach adopted in dealing such matters of compensation under the Motor Vehicles Act to the family members of the victim of an accident which does not disclose any satisfactory reason for the delay caused. 10. Apart from taking enormous time and thus causing delay in taking steps in filing the appeal, this Court can merely guess the amount of money spent in seeking legal opinions and also for sending forth the records from Kohima to Guwahati to Dibrugarh to Delhi and so on and so forth. The chain of events also indicates total lack of systematic manner in which an award passed by the Motor Accident Tribunal case has to be dealt with by a Public Insurance Company. The chain of events also indicates total lack of systematic manner in which an award passed by the Motor Accident Tribunal case has to be dealt with by a Public Insurance Company. Therefore, this Court is not only, not at all satisfied with the grounds taken seeking condonation of delay of 325 days, but is utterly shocked with the manner in which the matter has been dealt with by the authorities of a public company. 11. Under the circumstances for the reasons discussed above, the present application is dismissed with a cost of Rs. 10,000/- (Rupees ten thousand only).