Point of Law: There is nothing wrong in deciding the matter based on evidence adduced in the earlier round of litigation

ORDER :

C. Praveen Kumar, J.

1. Assailing the Order dated 23.03.2020 in PLAC No. 226 of 2018 passed by the Permanent Lok Adalat for Public Utility Services, Kadapa, the present Writ Petition is filed.

2. Originally the Claimant/ Respondent No. 2 herein filed PLAC No. 226 of 2018 stating that her husband, by name, N. Nagi Reddy, during his life time took a policy dated 24.04.2017 on his life from the HDFC Standard Life Insurance Company Limited, for a sum of Rs.50,00,000/-. The certificate bearing No. 19111262 was issued to N. Nagi Reddy, showing the Claimant/Respondent No.2 herein, who is his wife, as a ‘Nominee’ in the said policy.

3. On 16.11.2017 Sri. N. Nagi Reddy died of heart attack. The Claimant/Respondent No.2 herein approached the Insurance Company on 02.01.2018 and submitted her claim form with a request to release the amount payable under the policy. The said claim was repudiated on the ground that Nagi Reddy did not disclose the policies taken from other insurance companies, in the relevant column of the proposal form submitted by him to the Insurance Company.

4. Aggrieved by the same, the Claimant/Respondent No.2 herein approached the Permanent Lok Adalat, Kadapa, by filing a claim under Section 22A(b) of the Legal Services Authorities Act, 1987 [for short ‘the Act’]. By an Order dated 15.11.2018, an Award came to be passed by the Permanent Lok Adalat at Kadapa, directing the Insurance Company to pay a sum of Rs.50,00,000/-with interest at the rate of 16% per annum to the 2nd Respondent-nominee towards the claim under the said policy. Challenging the same, Writ Petition No.5766 of 2019 was filed before this court.

5. The issues that fell for consideration in the said writ petition are: (1) whether the Lok Adalat has jurisdiction to decide the dispute on merits; (2) whether the Insurance Company, who did not contest the dispute before Lok Adalat, can question the award by invoking the jurisdiction of this court under Article 226 of the Constitution of India; (3) whether the Insurance Company can question the ex parte award passed by the Lok Adalat; and (4) whether the said award was passed without giving an opportunity to the Insurance Company to contest the same.

6. By an Order dated 08.11.2019, this Court held that the Permanent Lok Adalat had the jurisdiction to decide the dispute on merits; (2) as the award passed by the Permanent Lok Adalat is final and that no appeal lies against it, held that the Insurance Company can challenge the award by invoking the extraordinary jurisdiction of this court; (3) it was also held that, though an ex parte award was passed by the Permanent Lok Adalat, the Insurance Company, if aggrieved by the order on account of manifest error of law, can question the same by filing a Writ Petition; (4) as the plea relating to repudiation of claim being vital in nature, and as it goes to the root of the matter, the court set-aside the Award and remanded the matter to the Permanent Lok Adalat, Kadapa, for fresh adjudication, after giving an opportunity to the Insurance Company to contest the matter by adducing evidence in support of repudiation of the claim under Section 45 of the Insurance Act. Accordingly, the court passed the following Order, which reads as under:

“Therefore, the Writ Petition is allowed setting aside the impugned Award dated 15.11.2018 of the Permanent Lok Adalat, Kadapa, passed in PLAC No.226 of 2018 on costs of Rs.30,000/-(Rupees Thirty thousand only) payable to the nominee, 2nd respondent-claimant. The matter is remanded to the Permanent Lok Adalat, Kadapa, for fresh adjudication. The Permanent Lok Adalat, Kadapa, shall afford an opportunity to the Insurance Company to contest the lis and adduce evidence in support of its contention. If the claimant intends to adduce any rebuttal evidence, opportunity to adduce evidence is to be given to her also and thereafter decide the dispute according to law.

We make it clear that we have not decided anything on fact or merit. We have onl