Disposed

Rabindra Singh, v. The State of Bihar

Patna HC23 Sept 2019CWJC/12468/2018

Case brief

AI extract

What is this about?

The petitioner sought release of an admitted insurance claim of Rs.3,97,000/- despite insurance company objections regarding document submission. The court held that only the financer NOC and a cancelled cheque were relevant for payment, directing the insurer to release the amount within 30 days. The court noted the petitioner could approach an appropriate forum for further claim disputes.

What did the court decide?

The insurance company is directed to pay the admitted claim amount of Rs.3,97,000/- within 30 days upon receipt of the financer NOC and cancelled cheque.

Rabindra Singh, Vs The State of Bihar — Insurance | Patna HC (2019)

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IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.12468 of 2018

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Criminal Writ Jurisdiction Case No.758 of 2018

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Rabindra Singh, S/o Late Bishwanath Singh, resident of Mohalla Bajrangpuri, P.S. and P.O. Guljarbagh, Dist.- Patna.

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... ... Petitioner/s

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Versus

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The State of Bihar through Chief Secretary, Govt. Of Bihar, Patna.

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The Director General of Police, Bihar, Patna.

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The Senior Superintendent of Police, Patna.

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Superintendent of Police, Muzaffarpur.

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Regional Manager, Hinduja Leyland Finance Ltd. B-8 Sahdeo Marg, S.K. Puri, Patna- 13.

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Branch Manager Hinduja Leyland Finance Ltd. Bibiganj, Sitamarhi Muzaffarpur Road, Bhagwanpur, Brahampura, Muzaffarpur.

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Managing Director and C.E.O, Hinduza Leyland Finance Ltd. Sardar Patel Road Guindi, Chennai 600032.

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In charge Manager, Ashok Leyland Agency, NH 28, Neta Chowk Near Kanti Power House, Kanti.

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Surveyer, New India Insurance Company Ltd Divisional Office Muzaffarpur.

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Branch Manager, The New India Insurance Company Ltd., Jamshedpur DO (540200) Kamni Centre, First Floor Jamshedpur DO, Main Road Bistoopur Jharkhand 831001.

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Chief Manager cum Chairman New India Insurance Company Ltd Regd. Office New India Building- 87, Mahatma Gandhi Fort, Mumbai 400001. ... ... Respondent/s

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Appearance :

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For the Petitioner/s : Mr.Surendra Kumar, Adv. For the Respondent Nos.10 and11: Mr.Arun Kumar Singh, Adv.

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CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD ORAL ORDER

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6 23-09-2019

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Heard learned counsel for the petitioner and learned counsel representing the respondent nos.10 and 11 i.e. the Insurance Company and its authorities.

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The scope of the writ application has now narrowed down to the claim of the petitioner with regard to the loss and

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Patna High Court CWJC No.12468 of 2018(6) dt.23-09-2019 2/4

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damages to the vehicle in question which he is claiming from the insurance company. According to petitioner he is entitled for a sum of Rs.645664/- with interest thereon up to date and submission is that the amount of Rs.645664/- was arrived at as an estimated value of loss by the surveyor of the insurance company but the same has not been paid so far on a totally false and flimsy ground that the petitioner had not made available certain documents. Learned counsel has submitted that in fact the petitioner has made available all the relevant documents as required for purpose of release of claim but the same is not being paid to the petitioner.

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Learned counsel representing the Insurance Company has drawn the attention of this Court towards the statements made in the counter affidavit particularly in paragraph 17 where a statement has been made that as per final surveyor the claim amount has been assessed for Rs.4,54,190/- and as per scrutiny of bill cash memos the claim amount comes to Rs.3,97,000/which may be payable subject to submission of required documents such as (1) original document verification, (2) original money receipt, (3) cancelled cheque, if payment to be made to insured, (4) financer, NOC of Financier and (5) Update receipt of road tax. Learned counsel for the Insurance Company

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Patna High Court CWJC No.12468 of 2018(6) dt.23-09-2019 3/4

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has submitted that on receipt of the aforesaid documents and verification thereof money may be released to the petitioner.

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Learned counsel for the petitioner has however expressed his grievance over the manner in which the claim amount has been reduced by saying that it is as per final surveyor. Learned counsel submits that the claim has been reduced for no rhyme and reason.

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Having heard learned counsel for the petitioner and the insurance company, this Court is of the considered opinion that whatever is the admitted amount of claim i.e. Rs.3,97,000/in this case the same must be released in favour of the petitioner on his submission of the financer NOC and the cancelled cheque. In fact with the rejoinder the petitioner has enclosed financer NOC on affidavit and has also enclosed a cancelled cheque which according to him have already been submitted with the insurance company. Learned counsel for the insurance company however submits that those documents have not been submitted. So far as various other documents such as original document verification and original money receipt as also up to date receipt of road tax etc. are concerned, this Court is of the opinion that those are not at all relevant for the purpose of payment of the insurance claim at this stage because the

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Patna High Court CWJC No.12468 of 2018(6) dt.23-09-2019 4/4

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insurance company having effected an insurance policy on the basis of the original documents of the vehicle and on being satisfied with the ownership of the petitioner at the relevant time cannot avoid payment of the insurance claiming in the name of of requirement of these documents.

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This Court is of the opinion that the financer NOC is the only relevant document because if the vehicle is found to be hypothecated, perhaps the benefit of the insurance claim has to go to the financer. Let the admitted amount be paid to the petitioner within a period of 30 days from the date of receipt of the duly authenticated and notarized copy of the financer NOC together with a cancelled cheque from the petitioner.

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If the petitioner is still not satisfied with the amount of claim being paid to him, it will be open for the petitioner to raise his grievance for the appropriate amount of claim and compensation as the case may be in accordance with law before an appropriate forum.

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This writ application stands disposed off accordingly.

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(Rajeev Ranjan Prasad, J)

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arvind/-

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Rabindra Singh, v. The State of Bihar

Case brief

What is this about?

What did the court decide?

Rabindra Singh, v. The State of Bihar

Case brief

What is this about?

What did the court decide?

What the court decided

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