Allowed

The Branch Manager Life Insurance Corporation of India , Cutack v. Permanent Lok Adalat Cantonment Road

Orissa HC23 Jun 2022WP(C)/35814/2020

Case brief

AI extract

What is this about?

This order disposes a writ petition challenging a Permanent Lok Adalat award granting delayed interest on a life insurance claim. The High Court accepted the petitioner insurance company's offer to pay 6% simple interest to ensure finality, directing payment within three weeks.

What did the court decide?

Petitioner to pay 6% simple interest for the period directed in the impugned award within three weeks of communication of this order.

The Branch Manager Life Insurance Corporation of India , Cutack Vs… — Insurance | Orissa HC (2022)

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IN THE HIGH COURT OF ORISSA AT CUTTACK

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W.P.(C) No.35814 of 2020 (Through hybrid mode)

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The Branch Manager Life Insurance Corporation Of India, Cuttack and another

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…. Petitioners

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Mr. Prafulla Kumar Rath, Advocate

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-versus-

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…. Opposite Parties

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Permanent Lok Adalat Cantonment Road, Cuttack and another

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Mr. S.K.Das, Advocate For O.P.2

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CORAM: JUSTICE ARINDAM SINHA

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ORDER 23.06.2022

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Order No.

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05. 1. Mr. Rath learned advocate appears on behalf of petitioners-insurance

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company, who has petitioned raising challenge to award dated 16^th October, 2020 passed by the Permanent Lok Adalat (PLA). He submits, the insured died within two years of taking the life insurance policy. Inquiry was required to be made. The inquiry took some time. The sum assured has been

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paid to the beneficiary. The dispute was regarding claim of interest made for delayed payment.

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He submits, without going into whether or not the PLA had the power

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to direct payment of interest for delayed payment on the contract of life

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insurance, he has instructions to submit, his client is ready to pay 6 %

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Page 1 of 2

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// 2 //

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simple interest for the period directed in the award.

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Mr. Das learned advocate appears on behalf of opposite party no.2. He submits, his client has a good claim as the contingency provided for in the policy had happened and the insurance company was liable to pay forthwith. Requisitions made by the insurance company for production of documents were complied with yet payment on the policy was made after long delay. Hence, his client had a legitimate claim with, which she went to the PLA. The PLA duly found in favour of his client. There is no illegality or material illegality in impugned award. There should not be interference.

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On query from Court regarding offer made by the insurance company to settle at 6 % simple interest for the period, to put an end to and finality of the litigation, Mr. Das submits, for that purpose his client is willing to accept the same.

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Petitioner will pay interest for the period directed in impugned award at the rate of simple interest of 6 % per annum. The payment is to be made within three weeks of communication.

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The writ petition is disposed of.

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(Arindam Sinha) Judge

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Prasant

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Page 2 of 2

The Branch Manager Life Insurance Corporation of India , Cutack v. Permanent Lok Adalat Cantonment Road

Case brief

What is this about?

What did the court decide?

The Branch Manager Life Insurance Corporation of India , Cutack v. Permanent Lok Adalat Cantonment Road

Case brief

What is this about?

What did the court decide?

What the court decided

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