(1)
INDERJEET KAUR ........ Vs.
NIRPAL SINGH ........Respondent D.D
15/12/2000
Facts:The landlord (Nirpal Singh) filed an eviction petition against the tenant (Inderjeet Kaur) under Clause (e) of the proviso to Section 14(1) of the Delhi Rent Control Act, 1958, claiming that he needed the premises for his residence and for the residence of his family members dependent on him.The tenant filed an application supported by an affidavit seeking leave to contest the eviction appli...
(2)
IN RE: S.K. SUNDARAM Vs.
UOI ........Responden D.D
15/12/2000
Facts:S.K. Sundaram, Advocate, sent a telegraphic communication to Dr. Justice A.S. Anand, the Chief Justice of India, on 3.11.2000, demanding his resignation from the office.Within three days, Sundaram filed a criminal complaint in which he accused the Chief Justice of India of usurping the office, traveling abroad, making appointments, and causing financial losses.The Supreme Court took suo motu...
(3)
KARNATAKA POWER TRANSMISSION CORPORATION LTD. AND ANOTHER
........ Vs.
THE AMALGAMATED ELECTRICITY CO. LTD. AND OTHERS
........Respondent D.D
15/12/2000
Facts:The dispute originated in 1971 when there were labor issues between the workers and the Amalgamated Electricity Co. Ltd.An Industrial Tribunal passed an award in 1987, concluding that there was no lockout as claimed by the workers.In 1974, the management of Amalgamated Electricity Company Ltd. was taken over by the Karnataka Electricity Board, including its assets and liabilities.In 1991, a ...
(4)
PURAN CHAND (D) THROUGH LRS. AND OTHERS ........ Vs.
KIRPAL SINGH (D) AND OTHERS ........Respondent D.D
15/12/2000
Facts:The dispute involves agricultural land in Patiala district, initially owned by Raunaq Ram and later mortgaged to Amar Singh, who subsequently sold his interest to Labhu Ram.Labhu Ram, as the mortgagee, created a tenancy on the land by inducting Bir Singh as a tenant.After Labhu Ram's death, his son Sat Pal inherited the mortgage rights and later transferred them to respondents 1 and 2.B...
(5)
RAJASTHAN HIGH COURT ADVOCATES ASSOCIATION ........ Vs.
UNION OF INDIA AND OTHERS ........Respondent D.D
15/12/2000
Facts:The case involves the establishment of a permanent Bench of the Rajasthan High Court at Jaipur following the creation of the State of Rajasthan in 1956. Various orders were issued, including one by the Chief Justice, defining territorial jurisdiction between the principal seat in Jodhpur and the permanent Bench in Jaipur. The challenge in this case focused on the validity of these orders an...
(6)
ORIENTAL INSURANCE CO. LTD. ........ Vs.
CHERUVAKKARA NAFEESSU AND OTHERS ........Respondent
Sections, Acts, Rules, and Articles Mentioned:
Section 95(1)(b), Section 96: Motor Vehicles Act, 1939
Section 174: Motor Vehicles Act, 1988
Subject:
The extent of liability of an insurance company towards third parties under Section 95(1)(b) of the Motor Vehicles Act, 1939, and the rights of the insurance company in case of payment exceeding the limits of liability under the insurance policy.
Headnotes:
Facts:
The case involves a claim petition filed by the legal heirs of C. Abdul Shukkoor, who died in a road accident.
The accident was caused by an auto-rickshaw insured with the appellant insurance company.
The claimants sought compensation of Rs. 2 lakhs, while the insurance company argued that its liability was limited to Rs. 50,000 under the insurance policy.
Issues:
What is the extent of liability of an insurance company under Section 95(1)(b) of the Motor Vehicles Act, 1939?
What are the rights of the insurance company if it is required to pay an amount exceeding the policy's liability limit?
Held:
The insurance policy in this case had a limit of liability of Rs. 50,000 for each claim. However, the policy included an avoidance clause that did not affect the rights of third parties to recover under Section 96 of the Act.
The court held that the conditions in the insurance policy were effective only between the insured and the insurance company. Third parties' rights to recover under Section 96 of the Act were not affected by these conditions.
The court allowed the appeal and held that the insurance company was liable to pay the entire award amount to the claimants. However, the insurance company had the right to recover the excess amount paid from the insured through execution of the award under Section 174 of the Motor Vehicles Act, 1988.
Referred Cases:
Amrit Lal Sood and Another Vs. Smt. Kaushalya Devi Thapar and Others, (1998) 1 ACC 332 : (1998) ACJ 531 : (1998) 4 AD 23 : AIR 1998 SC 1433 : (1998) 92 CompCas 305 : (1998) 2 JT 484 : (1998) 119 PLR 665 : (1998) 2 SCALE 344 : (1998) 3 SCC 744 : (1998) 2 SCR 284 : (1998) AIRSCW 1327 : (1998) 3 Supreme 10
New Asiatic Insurance Co. Ltd. Vs. Pessumal Dhanamal Aswani and Others, AIR 1964 SC 1736 : (1964) 7 SCR 867
New India Assurance Co. Ltd. Vs. Smt. Shanti Bai and others, (1995) 1 ACC 667 : (1995) ACJ 470 : AIR 1995 SC 1113 : (1995) 83 CompLJ 71 : (1991) 3 Crimes 418 : (1995) 2 JT 95 : (1995) 110 PLR 102 : (1995) 1 SCALE 472 : (1995) 2 SCC 539 : (1995) 1 SCR 871 : (1995) 1 UJ 482
National Insurance Co. Ltd., New Delhi Vs. Jugal Kishore and Others, (1988) 1 ACC 327 : (1988) ACJ 270 : AIR 1988 SC 719 : (1988) 63 CompCas 847 : (1988) 1 JT 265 : (1988) 94 PLR 128 : (1988) 1 SCALE 268 : (1988) 1 SCC 626 : (1988) 2 SCR 910
JUDGMENT
R.P. Sethi, J. —Leave granted.
2. What is the extent of liability of an insurance company towards the third party as per Section 95(1)(b) of Motor Vehicles Act, 1939 (hereinafter called "the Act") and what are its rights in case of payment of an amount in excess of the limits of the liability under the insurance policy vis-a-vis the insured, are the questions to be determined in this appeal. It has been argued on behalf of the insurance company that under the terms of the insurance policy in the instant case, the company was not liable to pay more than Rs. 50,000/-, being the limit of its liability. The excess amount of the Award was to be paid by the insured for which the Tribunal was not competent to issue directions against the appellant-company. On the other hand Counsel for the insured has submitted that as per avoidance clause in the insurance company, the appellant-company was liable to indemnify the whole extent of liability towards the claim notwithstanding the limit of liability of the insurance.
3. In this case the claim petition was filed by the legal heirs of C. Abdul Shukkoor, who died in a road accident on 6.7.1988. The accident was caused by an auto-rickshaw bearing Registration No.KRN 1859 which was insured with the appellant-company. The respondents claimed Rs. 2 lakes as compensation. The appellant-company filed their reply specifically standing therein that their liability was limited to Rs. 50,000/- under the policy of insurance. The Claims Tribunal passed an award of Rs. 1,94,150/- and fastened the entire liability on the appellant-company. The appeal filed against the order of the Claims Tribunal was dismissed vide the judgment impugned in this appeal.
4. Admittedly, the insurance policy, in this case is of a date prior to the coming into force of the new Motor Vehicles Act on 1.7.1989. The liability of the insurance company to satisfy judgments against persons insured in respect of the third party risk is covered u/s 96 of the Act, Sub-section (1) of which provides:
96. Duty of insurers to satisfy judgments against persons insured in respect of third party risks (1) if, after a certificate of insurance has been issued under Sub-section (4) of Section 95 in favour of the person by whom a policy has been effected, judgment in respect of any such liability as is required to be covered by a policy under Clause (b) of Sub-section (1) of Section 95(being a liability covered by the terms of the policy) is obtained against any person insured by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this D.D
14/12/2000
Facts:The case involves a claim petition filed by the legal heirs of C. Abdul Shukkoor, who died in a road accident.The accident was caused by an auto-rickshaw insured with the appellant insurance company.The claimants sought compensation of Rs. 2 lakhs, while the insurance company argued that its liability was limited to Rs. 50,000 under the insurance policy.Issues:What is the extent of liability...
(7)
HOUSING AND URBAN DEVELOPMENT CORPORATION LTD. ........ Vs.
M.C.D. AND ANOTHER ........Respondent D.D
13/12/2000
Facts: This case pertains to Civil Appeal No. 6645 of 1999 in the Supreme Court of India. The appellant, Housing and Urban Development Corporation Ltd., filed the appeal against the Municipal Corporation of Delhi (M.C.D.) and another party. The appeal was heard by a bench consisting of U. C. Banerjee, J; Brijesh Kumar, J; B. N. Kirpal, J. After considering arguments from both sides, the court foun...
(8)
LIFE INSURANCE CORPORATION OF INDIA AND OTHERS ........ Vs.
SMT. ASHA GOEL AND ANOTHER ........Respondent D.D
13/12/2000
Facts:Late Naval Kishore Goel, a policyholder, had a life insurance policy with Life Insurance Corporation of India (LIC). After his demise, his wife, Smt. Asha Goel, filed a claim under the policy. LIC refused the claim, alleging that Naval Kishore Goel had provided false information about his health when taking out the policy.Issues:Whether the High Court had jurisdiction under Article 226 of th...
(9)
THE STATE OF BIHAR ........ Vs.
CHANDRA BHUSHAN SINGH AND OTHERS ........Respondent D.D
13/12/2000
Facts:The case involves railway employees caught unlawfully carrying away Railway Cement for sale.Offenses under the Railway Property (Unlawful Possession) Act, 1966, were established against the accused.An inquiry report (complaint) under the Act was filed by an officer of the Railway Protection Force (RPF) in the court of a Judicial Magistrate.The accused argued that the RPF officer was not a &q...