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2018 Supreme(All) 2135

ALLAHABAD HIGH COURT
BEFORE : SIDDHARTHA VARMA, J.
RELIANCE GENERAL INSURANCE CO. LTD. AND ANOTHER ....Petitioners
Versus
MOHD. SHAFIQUE AND ANOTHER ....Respondents
(Civil Misc. Writ Petition No. 20438 of 2015, decided on 24th October, 2018)

Advocates:
Counsel :
Pranjal Mehrotra for the Petitioners; M.S. Khan, S.C. and Sanjeev Singh for the Respondents.

Headnote:Legal Services Authority Act, 1987 – Section 22-A(b)(vi) – (Indian) Penal Code, 1860 – Sections 378 and 406 – Theft – Compensation – Respondent No. 1 awarded Rs. 7,24,667 with cost of litigation of Rs. 1000 for theft of his truck – Challenge against – Petitioner failed to raise any issue of pecuniary jurisdiction at first instance – Since complainant had stated that driver had run away with vehicle and was not to be found again, then it was a case of theft and respondent had to be compensated – FIR lodged for criminal breach of trust is immaterial – Claim before Permanent Lok Adalat also maintainable – Impugned award upheld. [Paras 4 to 7]

       Result; Petition Dismissed.

JUDGMENT

Hon’ble Siddhartha Varma, J.—This writ petition has been filed against an award of the Permanent Lok Adalat, Allahabad dated 18.12.2014. The respondent No. 1 had made a claim that as his Truck No. U.P.70 AT 6443 which was insured with the petitioner was taken away by his driver Shiv Kumar Maurya on 8.10.2012 and had not come back he should be compensated. After lodging a First Information Report and after the rejection of the claim of the respondent by the petitioner on 31.12.2013, the respondent had filed a claim before the Permanent Lok Adalat by means of Complaint Case No. 97 of 2014. This Complaint Case was allowed by the Permanent Lok Adalat and the respondent No. 1 was awarded a sum of Rs. 7,24,667/- alongwith the cost of litigation of Rs. 1000/-. It was further provided in the award that from the date of the filing of the Suit and till the actual payment of the claim, 9% simple interest would be payable to the complainant (respondent No. 1 here).

2. The petitioner-Insurance Company has filed the writ petition challenging the award and has essentially raised the following grounds :

(i) The claimant i.e. respondent No. 1 in this writ petition had filed a First Information Report under Section 406 I.P.C. and not under Section 378 I.P.C. and, therefore, no compensation was payable to him as the vehicle was insured against theft and not against criminal breach of trust.

(ii) The Permanent Lok Adalat had the jurisdiction only to deal with cases upto Rs. 10 lacs and when the complainant had made a claim of Rs. 11,52,450/- then the claim was not maintainable before the Permanent Lok Adalat.

(iii) Admittedly the vehicle was lost on 8.10.2012, the FIR was lodged on 20.3.2013 and the claim was made by means of a notice dated 28.12.2013 and, therefore, the claim was highly belated.

(iv) Claim petitions which could have been filed before the Motor Accident Claims Tribunal were not maintainable before the Permanent Lok Adalat and, therefore, the Permanent Lok Adalat had no jurisdiction to deal with the matter.

3. Learned counsel for the respondent No. 1, however, in reply, made the following submissions :

(i) Even though the respondent No. 1 had made the claim on the basis of an FIR which was lodged under Section 406 IPC, in effect the claim was made on the basis of the fact that there was a theft. Theft has been defined under Section 378 IPC. Learned counsel submitted that apart from the ingredients which are found from the reading of Section 378, to understand what “theft” is, various illustrations have been provided in the IPC and if Illustration - D is seen, then it would be clear that when the driver of the claimant runs away with the vehicle and does not come back, then it was in fact a theft which was committed by the driver and, therefore, he submits that the mere mention of Section 406 in the FIR was of no consequence. In fact the driver had committed a theft.

Since the learned counsel for respondent No. 1 took the Court through Section 378 IPC and the relevant illustrations, Section 378 IPC and Illustration-D are being reproduced hereasunder :

“378. Theft.—Whoever, intending to take dishonestly any moveable property out of the possession of any person without that person’s consent, moves that property in order to such taking, is said to commit theft.

...................

(d) A, being Z’s servant, and entrusted by Z with the case of Z’s plate, dishonestly runs away with the plate, without Z’s consent. A has committed theft.”

Learned counsel for respondent No. 1, therefore, submits that it was not in the domain of the Insurance Company to have rejected the claim of respondent No. 1 simply on account of the fact that the complainant had mentioned in the FIR that a crime had been committed by the driver under Section 406. He submitted that in fact theft was committed by the driver as he had disappeared with the vehicle of the complainant.

(ii) As regard the lack of pecuniary jurisdiction with the Permanent Lok Adalat, le








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