New India Assurance Co. Ltd. v. Dhramshila

Delhi High Court · 25 Apr 2016 · 2016:DHC:3165
R. K. Gauba
MAC APP. No. 63/2013
2016:DHC:3165
civil appeal_dismissed Significant

AI Summary

The Delhi High Court held that an insurer cannot avoid liability to pay compensation to a third party claimant despite breach of policy conditions but is entitled to recover the amount from the insured.

Full Text
Translation output
MAC APP. No. 63/2013 HIGH COURT OF DELHI
Date of Decision: 25th April, 2016
MAC.APP. 63/2013 & CM Nos.17637/2013, 17638/2013
NEW INDIA ASSURANCE CO.LTD. ..... Appellant
Through: Mr. P. Acharya, Adv.
VERSUS
DHRAMSHILA & ORS. ..... Respondents
Through: None.
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT
R.K.GAUBA, J (ORAL):

1. The insurance company, while resisting the accident claim case (MAC no.336/2010) preferred by the first respondent on 01.06.2010 seeking compensation for injuries suffered by her in a motor vehicular accident that occurred on 12.07.2008 involving the vehicle (motorcycle) bearing registration no. TN-69W-8565, concededly insured against third party risk with, had taken the plea of breach of terms and conditions of the policy on the ground that there was no valid permit held by the third respondent (the owner/insured of the offending vehicle). This contention was upheld. The insurance company was directed to satisfy the award but granted recovery rights by judgment dated 10.10.2012. 2016:DHC:3165 MAC APP. No. 63/2013

2. By appeal at hand, the insurance company submits that instead of being asked to satisfy, it should have been exonerated.

3. The contention of the insurance company must be rejected as the rights of the third party cannot be defeated. Since the interests of the appellant are secured by the grant of recovery rights, the appeal is unmerited and is liable to be dismissed [National Insurance Company V. Swaran Singh (2004) 3 SCC 297 & United India Insurance Company Ltd. V. Lehru & Ors.

4. By order dated 22.01.2013, the insurance company had been directed to deposit the entire awarded amount with UCO Bank, Delhi High Court branch, fifty percent whereof was released and balance having been kept in fixed deposit receipt. The balance shall also now be released.

5. The statutory amount, if deposited, shall be refunded.

6. The appeal is disposed of in above terms.

R.K. GAUBA (JUDGE) APRIL 25, 2016 ssc