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HIGH COURT OF JAMMU AND KASHMIR

AT SRINAGAR

Reserved on 17.02.2021

Pronounced on .03.2021

OWP No. 196/2015 (O&M)

c/w

OWP No. 198/2015 (O&M)

National Insurance Company Limited

...Petitioner/Applicant(s)

through :- Mr. J. A. Kawoosa, Sr. Advocate with

Mr. Areeb Kawoosa, Advocate

v/s

Marayum Bee and others

.....Respondent (s)

Through :- Mr. Shuja Ul Haq, Advocate

Mr. M. M. Dar, Advocate

Coram:

HON’BLE MR. JUSTICE RAJNESH OSWAL, JUDGE

JUDGMENT

1. These two writ petitions have been filed by the petitioner-company

challenging the award dated 06.12.2014 passed in claim petition titled,

Mst. Maryam Bi and others vs National Insurance Company Limited and

another and award dated 06.12.2014 passed in claim petition, titled, Abdul

Majid and others vs. National Insurance Company Limited and others.

Both the awards were passed in the National Lok Adalat, that was held on

06.12.2014 in the District Kargil. Since both the writ petitions have been

filed on the similar grounds, as such, they were heard together and are

being disposed of by this common judgment.

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2.

Both the awards passed by the Lok Adalat have been challenged

on the ground that the claim petition, titled, <Mariyam Bi and others versus

National Insurance Co. & Ors= on the face of it was not maintainable under

the Motor Vehicle Act as the deceased was himself driving the vehicle rashly

and negligently and met with an accident whereas the claim petition titled,

<Abdul Majid and others versus National Insurance Co. & Ors= was not

maintainable against the petitioner-company as the deceased was travelling as

a gratuitous passenger in a vehicle that met with an accident.

3.

The claim petitions were settled in the Lok Adalat.

A sum of Rs. 15 lacs was awarded in favour of the respondents/claimants in

Mariyam Bi’s claim petition, whereas a sum of Rs. 5 lacs was awarded by the

Lok Adalat in favour of the claimants/respondents in Abdul Majid’s claim

petition . It is further stated that the claim petitions were considered by the

Jammu Office of the petitioner-company and it was found that the cases were

not fit for compromise before the Lok Adalat that was to be held on

06.12.2014 in District, Kargil and in this regard, a communication dated

17.11.2014 was addressed to the concerned counsel and alongside a copy of

the same was also sent to the Branch Manager accompanied by the email dated

20.11.2014 sent by D.O. Jammu to its Branch Head, Leh in which it was

intimated that no case is fit for compromise and the said fact was confirmed

by Jagmohan Singh, Branch Head, Leh by his email dated 24.11.2014. The

Branch Head, Leh was advised to attend the court in District, Kargil on

06.12.2014 so as to inform the court that the listed cases were not fit for

compromise. The Branch Head appeared before the learned Lok Adalat at the

venue in the matter on 06.12.2014 and settled the matter

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on his own without any authority, as such, the petitioner-company on

07.12.2014 informed the Branch Head, Leh that he has compromised the cases

without any permission vide email dated 07.12.2014. Simultaneously,

Regional Manager, Regional Office (Cell), Jammu vide email dated

08.12.2014 sought explanation from the Branch Head, Leh pertaining to all

the cases and called upon the Branch Head Leh to give the list/complete

details of the cases compromised without any authority. As the Branch Head,

Leh had entered into compromise without any authority so the petitioner-

company decided to initiate departmental action against the Branch Head

under the National Insurance Conduct, Discipline and Appeal Rules, 2012.

On these grounds, the petitioner-company has filed these petitions for

quashing the impugned awards.

5.

Response stands filed in both the petitions and it has been s