Shri Binod Kumar Singh v. National Insurance Company Ltd.
Judgment
Satish Chandra Sharma, J.
1. Leave Granted.
2. The present appeal is arising out of order dated 19.08.2020 passed
by National Consumer Disputes Redressal Commission, New Delhi,
(for short, “the National Commission”) in First Appeal No. 1778 of
2017.
3. The facts of the case reveal that the appellant before this Court is the
owner of Truck bearing registration No. BR-02-Q9220 make TATA-
251625.0LPKTC. The truck was insured with the respondent National
Insurance Company for a period of one year i.e. from 18.09.2013 to
the midnight of 17.09.2014 and unfortunately, the truck caught fire
on account of short-circuit on 08.06.2014 meaning thereby during
the validity of insurance cover.
4. The appellant preferred a complaint before the State Consumer
Disputes Redressal Commission, Bihar, Patna (for short, “the State
Commission”) and the State Commission placing reliance on the
judgment delivered in the case of National Insurance Company
Vs. Nitin Khandelwal (Criminal Appeal No. 8463/2014) directed the
respondent insurance company to settle the claim on non-standard
basis within a period of three months if other requirements were
fulfilled by the appellant.
5. The respondent National Insurance Company being aggrieved by the
order passed by the State Commission dated 07.07.2017 preferred an
appeal before the National Commission and the National Commission
has allowed the appeal holding that the judgment delivered by this
Court in the case of Nitin Khandelwal (supra) does not help the
appellant as it was a theft case whereas the present case relates
to damage by fire. The National Commission after placing reliance
upon the judgment delivered in the case of Amrit Paul Singh and
Anr. Vs. TATA AIG General Insurance Co. Ltd. & Ors. (2018) 7
SCC 558 has allowed the appeal and held that the insurance claim
cannot be allowed in the absence of any valid permit thereby setting
aside the order passed by the State Commission.
524 [2025] 2 S.C.R.
Digital Supreme Court Reports
6. Learned counsel for the appellant has vehemently argued before this
Court that the All India Permit (National Permit) was issued having
validity period with effect from 14.10.2012 to 13.10.2017 and for
State of Bihar, the permit was in force from 13.10.2012 to 13.10.2013
meaning thereby, on the date the truck caught fire on 08.06.2014,
there was a valid National Permit in existence.
7. Learned counsel for the respondent National Insurance Company
has vehemently argued before this Court that as per the terms and
conditions of the permit, the fee was deposited for a period with effect
from 13.10.2012 to 13.10.2017 and the authorization fee was not
deposited beyond 14.10.2013 and, therefore, and in the absence of
non-depositing of authorization fee, National Permit cannot be said
to be a valid permit.
8. This Court has carefully gone through the permit which is on record
and the National Permit is certainly valid up to 13.10.2017. The
authorization fee was required to be paid only when the truck was
moving out of State of Bihar as it was registered in the State of Bihar
and the truck caught fire on account of short-circuit on 08.06.2014
in the State of Bihar itself and, therefore, the respondent company
could not have repudiated the claim on such a frivolous ground. The
permit in question was issued by the competent authority in Bihar and,
therefore, there was no requirement of paying authorization fee when
the truck was being used in the State of Bihar and as per the terms
and conditions of the National Permit, authorization fee was required
to be paid only when the truck was moving out of State of Bihar. Thus,
in the considered opinion of this Court, the appellant was certainly
entitled for the insurance claim as held by the State Commission
and, therefore, the order passed by the National Commission, dated
19.08.2020, deserves to be set aside and is accordingly set aside.
The respondent National Insurance Company is directed to process
the claim of the appellant and to pay the amount to the appellant
within a period of 60 days from today. It is needless to mention that
the claim became due in the year 2014 and it was repudiated by
the respondent National Insurance Company in the year 2014 itself.
The order of the State Commission allowing the claim was passed
in the year 2017 which was reversed by the National Commission
in the year 2020. Therefore, in the considered opinion of this Court,
the appellant was not only entitled for the entire claim amount right
from the date it became due but he is also entitled for interest from
Shri Binod Kumar Singh v. National Insurance Company Ltd.
the date of the complaint made before State Commission till the date,
the amount is actually paid to him. The appellant shall be entitled to
interest @ 9% per annum and the same with the proposed amount
be paid positively within 60 days from today.
9. With the aforesaid, the appeal stands allowed. No orders as to costs.
Pending applications, if any, shall stand disposed of.
Result of the case: Appeal allowed.
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