IMPORTANT POINT
Writ petition cannot be suo motu converted into PIL to adjudicate old disputes which cannot be held to be affecting the case of the “poor litigants”.

JUDGMENT :

ASHOK BHUSHAN, J.

Leave granted.

2. The appellants, four insurance companies are aggrieved by the judgment dated 09.12.2016 of the Punjab & Haryana High Court passed in a Public Interest Litigation being Writ Petition CWP No. 6626 of 2015, issuing certain directions regarding payment of fee to its empanelled advocates.

3. Brief facts of the case resulting into the judgment of the Division Bench are:-

A FAO No. 2604 of 2013 – Rajesh Vs. Parmod & Anr. was filed by an injured of a motor accident, claiming compensation. While hearing the FAO, the learned Single Judge noticed that in spite of issue of notice of motion, none had appeared on behalf of the insurance company, i.e. United India Insurance Co. Ltd. Learned Single Judge in the aforesaid FAO passed an order for treating the issue as of vital public importance and registering a separate writ petition in that regard. It is useful to extract the order dated 12.09.2014 passed by the learned Single Judge:-

“……………………………….26 Standing Counsel representing four Insurance Companies (1. United India Insurance Co. Ltd.; 2. Oriental Insurance Co. Ltd.; 3. New India Assurance Co. Ltd. and 4. National Insurance Co. Ltd.) appeared before the Court and brought their plight to the notice of the Court of how the officers and officials of these Companies were circumventing the administration of justice for their personal ends and gains. It has been highlighted during the course of hearing that these General Insurance Companies are for obvious reasons manipulating the guidelines/fee structures approved by GIPSA and under that undue exercise the Counsel were being not properly assisted and thus, intentionally causing delay in the disposal of these matters before the Court and invariably were causing loss to the exchequer of these Companies which mostly are public undertakings. It has been highlighted with much emphasis how the fees and bills of the advocates, who had been representing the Companies in the matters, were not being paid since decades. This unholy nexus and trend assumes greater importance as people in general, who repose faith in promises of financial security made by these Companies in times of their sufferings and injury, were left high and dry. Thus, what was invented as a social welfare has become a tool of exploitation in the hands of these officers of the Companies who are out and out also trying to harm the advocates who are the officers of the Court. It has often been seen that the Counsel who do not tow the line are changed in between the hearings. Thus, the sufferings are increased manifold by the inordinate intentional delay of these Companies and lack of assistance to their Counsel. Since these issues of vital public importance are being faced by almost all the Advocates present before the Court for these Insurance Companies, is an impediment and delaying process in the dispensation of justice.

Thus, this Court is pleased to treat this issue as a writ petition and refer it to the Hon'ble Acting Chief Justice for constituting an appropriate Bench to look into the matter so that much relief could come about to the poor litigants."

The above reference made by learned Single Judge in the matter was placed before a Division Bench treating it to be a Public Interest Litigation being CWP No. 6626 of 2015. The Division Bench issued notice on 28.04.2015 to all four insurance companies, i.e., United India Insurance Company Ltd., Oriental Insurance Co. Ltd., New India Assurance Co. Ltd. and National Insurance Co. Ltd. Before the Division Bench, all the four insurance companies (who are appellants before us) have filed a joint reply dated 01.09.2015 and further a joint reply for placing on record the fees schedule dated 05.05.2016. Before the Division Bench, Shri Akshay Bhan, learned senior counsel appearing for the advocates, whose fee are due and payable by the four insurance companies submitted that the New India Assurance Co. Ltd. has committed to pay all the fee in terms of