SUPREME COURT OF INDIA
SANJAY KISHAN KAUL, K.M. JOSEPH, JJ.
Yashowanta Narayan Dixit – Appellant
Versus
Oriental Insurance Co. Ltd. – Respondent
Civil Appeal No. 1241 of 2020, Arising Out of S.L.P. (Civil) No. 5080 of 2018
Decided On : 07-02-2020
Insurance Claim - Dispute over payment of insurance claim - The court upheld the order of the State Commission and directed the Insurance Company to comply with the awarded amount to the Complainant within a period of 3 months.
Fact of the Case:
The appellant filed a claim for the loss of stock in trade due to a super cyclone in 1999. The claim was adjudicated, and damages were calculated at Rs. 12,63,355. The State Commission awarded a lump-sum amount of Rs. 16,00,000 in 2007, with a cost of Rs. 5,000. The Insurance Company appealed, but the National Commission upheld the State Commission's order, directing the Insurance Company to pay the awarded amount to the appellant within 3 months.
Finding of the Court:
The court found that the Insurance Company must comply with the order of the State Commission and pay the awarded amount to the Complainant within a period of 3 months.
Issues: Dispute over the payment of the insurance claim, compliance with the State Commission's order, and the appellant's dissatisfaction with the payment.
Ratio Decidendi: The court held that the order/decree of the State Commission must be implemented in its entirety, and the view taken by the State Commission in execution proceedings is the correct view.
Final Decision: The appeal was allowed, leaving the parties to bear their own costs.
ORDER :
1. Leave granted.
2. The appellant presented a claim to the respondent-Insurance Company on account of the loss of stock in trade comprising of raw materials including Mustard Oil Seed, Mustard Oil in tanks and its by-products, which were damaged during the super cyclone which hit the appellant's business premises on 29th October, 1999. The claim was not honoured and as a result, CD Case No. 197/2003 was filed before the State Consumer Disputes Redressal Commission, Orissa, Cuttack (State Commission) making a claim of Rs. 69,06,685/-.
3. The claim was adjudicated and damages were calculated at Rs. 12,63,355/- as per purchase bills by the appellant. Owing to the financial necessity of the appellant, Rs. 3,00,000/- (Rupees three lakhs) were directed to be paid to him by the respondent-Insurance Corporation by way of an interim order. Taking into consideration the report of the surveyor and in the totality of the facts and circumstances, a lump-sum amount of Rs. 16,00,000/- (Rupees sixteen lakhs) was awarded. We may notice that the claim arises from an incident of 1999 and the orders were passed only in the year 2007, after eight years, as aforesaid, with cost of Rs. 5,000/- (Rupees five thousand). In this period of eight years, the appellant was deprived of the amount.
4. The respondent-Insurance Company preferred First Appeal No. 51 of 2008 before the National Consumer Disputes Redressal Commission, New Delhi (National Commission) and had obtained an interim order during the pendency of the appeal by deposit of part of the amount. The amount of Rs. 5,00,000/- was permitted to be withdrawn by the appellant. The appeal was ultimately taken up for hearing and decided vide order dated 29th August, 2013. The operative part of the order is as under:
5. It is a case of the respondent that they paid the amount as per the order of the State Commission i.e. Rs. 16,00,000/- (Rupees sixteen lakhs) within three months period of time i.e. Rs. 8,00,000/- initially paid and the balance amount a little over Rs. 8,00,000/- (Rupees eight lakhs) was paid later. The appellant was not satisfied and preferred execution proceedings before the State Commission which directed the balance interest amount to be paid in terms of order dated 30th October, 2015. However, in the revision petition filed against the same, by the impugned order dated 17th March, 2017, it has been observed that the claim for interest was not justified.
6. We have heard learned counsel for the parties and we are not in agreement with the view taken by the respondent-Insurance Company.
7. When any party approaches the appellate forum and obtains conditional order of stay, the deposit made is only to prevent the remaining amount being paid. If the appeal is lost, the whole amount becomes due as per of order/decree of the court below. In the present case the National Commission dismissed the appeal and thus observed that the amount had to be paid as per the order of the State Commission. Interim orders to protect the respondent in the interregnum period during the pendency of appeal certainly cannot affect the decree which arises out of the order of the State Commission though, naturally, the amount released to the appellant as a condition of stay would be adjusted against the amount due. The effect of the order of the National Commission was to reiterate the order of the State Commission which had directed payment of Rs. 16,00,000/- by 31st March, 2008, failing, interest @ 9% from 1st November, 1999 would be chargeable. The amount was not deposited within that window, nor even interim order obtained, though soon after that the interim order was obtained. In our view, that would not make any difference.
8. We are of th
The main legal point established in the judgment is the binding effect of the settlement between the parties, the waiver of the right to seek re-employment by the workmen, and the entitlement of the ....
A lockout is justified if it is declared in response to an illegal strike or a strike that is in breach of a settlement or award.
The combination of eyewitness testimonies, recovery of the weapon used, and forensic examination results can establish guilt in criminal cases, even based on circumstantial evidence.
The conviction of an accused person under Section 27(3) of the Arms Act is not permissible in law if the accused is also charged with committing murder under Section 302 of the Indian Penal Code.
The court can enhance compensation based on the deceased's income and family dependency, and adjust the multiplier used by the Tribunal if found unjustified.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.