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2025 Supreme(SC) 1902

SANJAY KAROL, MANOJ MISRA
Akula Narayana – Appellant
Versus
Oriental Insurance Company Limited – Respondent


Advocates appeared:
For the Petitioner(s): Mr. R. Anand Padmanabhan, Sr. Adv. Mr. R. Santhanan Krishnan, Adv. Mr. Krishna Kumar Singh, AOR Mr. Krishna Kumar Singh, AOR
For the Respondent(s): Mr. Ajay Singh, Adv. Mr. Ajay Kumar Rai, Adv. Mr. Lokesh Kumar Choudhary, AOR Mr. Shubham Singh, Adv. Mr. Himanshu Shukla, Adv. Mr. Lokesh Kumar Choudhary, AOR

Table of Content
1. liability disputes between appellant and insurer. (Para 2 , 3 , 4 , 5 , 6)
2. arguments on insurance liability and breach. (Para 8 , 9)
3. court's analysis on insurance contract obligations. (Para 10 , 11)
4. application of pay and recover principle. (Para 12)
5. final decision to allow appeal. (Para 13 , 14)

JUDGMENT

1. Leave granted.

3. There is no dispute inter se parties regarding liability of the second respondent (i.e., owner of the vehicle with which accident was caused). There is also no dispute that the vehicle was insured with the first respondent. The only dispute is whether the insurer should have been absolved totally from its liability to pay the compensation or that the insurer should have been directed to pay and recover the same from the vehicle owner.

5. The High Court on an appeal by the insurer held that though the insurer might have collected additional premium for driver, conductor and cleaner, the policy would not cover the risk of any other person or passenger. Besides that, the vehicle being a five-seater was carrying nine persons, therefore, there was a clear breach of the terms and conditions of the policy and as such the insurer cannot be held

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