The New India Assurance Co. Ltd. Vs M/S Bindal Associates and Others — Punjab & Haryana HC (2025) — LawSathi Research

The New India Assurance Co. Ltd. Vs M/S Bindal Associates and Others — Punjab & Haryana HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Writ petition disposed of with the impugned Permanent Lok Adalat award modified only as to interest — reduced from 9% to 8% per annum on the awarded amount (Rs. 26,24,375/- plus Rs. 10,000/- and Rs. 5,000/- components) from the date of filing the application till realization; petitioner to deposit within four weeks of receipt of certified copy, failing which the 9% interest as awarded revives in favour of respondent No.1.

Issue for consideration

Whether the petitioner-insurer, while expressly not assailing the Permanent Lok Adalat award on merits, could obtain a modification of the award dated 16.10.2024 confined to its interest component (@ 9% per annum on the awarded amount). +1 more

Court's answer

The rest of the impugned award is ordered to be maintained, except the modification reducing the interest to 8% per annum.

Ratio / Principle

The impugned Permanent Lok Adalat award is ordered to be modified only to the extent of reducing the interest payable by the petitioner; the modification does not disturb the remaining award.

Key takeaways

After modification the petitioner is liable to pay Rs. 26,24,375/- (insured declared value) along with Rs. 10,000/- as mental harassment and Rs. 5,000/- as litigation expenses, carrying interest @ 8% per annum (reduced from 9%) on the awarded amount from the date of filing the application till its realization.ratio¶25
The petitioner is directed to comply with the undertaking given to this Court by depositing the payable amount within four weeks from the date of receipt of the certified copy of this order/judgment.ratio¶28
Default clause: in case the petitioner fails to deposit the said amount within the stipulated period, respondent No.1 would be entitled to interest @ 9% per annum, as originally awarded by the learned Permanent Lok Adalat.

Detailed headnote1 paragraphs

Insurance claim — modification of Permanent Lok Adalat award (Panchkula, 16.10.2024). The New India Assurance Co. Ltd. challenged, by CWP-3577-2025, the award granting respondent No.1 the insured declared value of ₹ 26,24,375/- for truck HP-93-3833, ₹ 10,000/- as mental harassment, ₹ 5,000/- as litigant expenses and interest @ 9% p.a., payment being conditional on formalities (RC transfer, Letters of Indemnity and Subrogation on Rs.100/- stamped paper, financier NOC, bank details, KYC). After respondent No.1 complied and the RC was transferred (consensus direction of 07.02.2025 for appearance at R.T.O. Baddi at Nalagarh on 17.02.2025), the insurer, not agitating the claim on merits, sought only a reduction of interest to 8%. The Court modified the award solely to that extent: interest @ 8% p.a. from date of filing the application till realization, the balance of the award maintained; deposit within four weeks of receipt of certified copy, failing which the 9% rate as awarded revives; writ petition disposed of. Single-judge oral order (Kuldeep Tiwari, J.), 26.03.2025.

CWP-3577-2025 1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

(281) CWP-3577-2025 Date of Decision : 26.03.2025

The New I n dia Assurance Company Ltd. …Petitioner

Ve r sus

M/s Bindal Associates and others ...Respondents

CORAM: HON’BLE MR. JUSTICE KULDEEP TIWARI

Present: Mr. Punit Jain, Advocate for the petitioner.

Mr. Suryaveer Surjewala, Adv o cate for the respondent No.1.

KULDEEP TIWARI , J.(ORAL)

The petitioner-Insurance Com p any, has thrown a challenge to t he award date d 16.10.2024 (Annexure P-1), passed by the learned Perman e nt Lok Adalat, Panchkula.

At the time of issuance of n o tice of motion, vide order da t ed 07.02.2025, this Court, had passed the he r einafter extracted order upon t he instant writ petition :-

“1. The instant writ pe t ition encompasses the prayer f or setting aside the awar d dated 16.10.2024, whereby, t he Permanent Lok Adala t has held the respondent No .1 entitled for getting the insured declared value of tr u ck bearing Registration No . HP-93-3833 of ₹ 26,24,37 5 /-. The respondent No.1 ha s also been held entitled for gett i ng compensation of ₹ 10, 0 00/- as mental harassment an d ₹ 5,000/- as litigant expenses. Moreover, the respon d ent

MANPREET SINGH 2025.03.28 18:13 I attest to the accuracy and authenticity of this order/judgment

CWP-3577-2025 2

No.1 has been held enti t led for interest @ 9% per annum on the awarded amount f rom the date of filing the case till its realization. 2. The l earned counsel for the petitio n er submits that, he does n ot intend to assail the impug n ed award on merits, rath e r his submission is that, for the purpose of making co m pliance of the directions (sup r a) enclosed in the impugn e d award, the respondent No. 1 is required to furnish t h e following documents and to complete the following f o rmalities:-

“(1) RC to be transfe r red/cancelled in the petition e r’s name; (2) Letter of In d emnity on Rs. 100/- Non-Judi c ial Stamp paper duly attes t ed by Notary and affix notari z ed stamp of Rs.5/-. Submit it to Claim Hub. The affidavit h as to be signed by two independent witnesses along w ith attested copies of their A adhar Card or Pan Card. (3) Letter of Subrogatio n on Rs. 100/- Non-Judicial Sta m p paper duly attested by t h e Notary and affix notarized sta m p of Rs.5/-. Submit it to C laim Hub. The affidavit has to be signed by two indepen d ent witnesses alongwith attes t ed copies of their Aadhar C ard or Pan Card. (4) If the veh i cle is financed, payment w ill be made in favour of the financier otherwise Or i ginal NOC is required from t he Financier in the name of petitioner. Submit it to Cl a im Hub. (5) Bank details p r eferably cancelled cheque. Sub m it it to Claim Hub. (6) KY C form alongwith 2 photos. Sub m it to Claim Hub.”

3. At this stage, notice of motion only to the respon de nt No.1.

4. Mr. Suryaveer Surje w ala, Advocate, waives service of notice on behalf of the r e spondent No.1. 5. There is no wrangl e amongst the contesting litigants that, the requisite info r mation can be furnished by t he respondent No.1 and th e R.C. of the vehicle in question c an also be transferred i n the name of the petitio n er. Therefore, taking into a ccount the consensus arrived at

MANPREET SINGH 2025.03.28 18:13 I attest to the accuracy and authenticity of this order/judgment

CWP-3577-2025 3

between the learned co u nsels appearing for the petitio n er and for the respond e nt No.1, this Court deems it appropriate to direct the representatives of the petitio n er and the respondent No. 1 to cause appearance in the of f ice of R.T.O. Baddi at Na l agarh on 17.02.2025 at the t i me mutually settled by them . 6. List on 26.03.2025”

Learned counsel for the petiti o ner, at the very outset informs t his Court that t he respondent No.1, has mad e the compliance to the directi o ns (supra), iss u ed by this Court, and the RC of the vehicle, in question, has now been transf e rred in the name of the petition e r, and all the formalities have b e en completed, and there is no legal impedime n t for the authorities concerned , to transfer the vehicle in question, in favour o f the petitioner. Therefore, so fa r as the issue of transfer of the vehicle, in quest i on is concerned, the same has n o w been settle d . He finally submits that he is not agitating the claim on merits, rather his o nly concern is with regard to the interest @ 9% per annum, as awarded b y the learned Permanent Lok A dalat concerned, on the awar d ed amount. H e further submits that in case, the amount of interest @ 9% is reduced to 8%, in that eventuality, they would submit the entire awar d ed amount, al o ng with interest @ 8% with t h e learned Permanent Lok Ad a lat concerned, w ithin four weeks from today.

The prayer so made by the le a rned counsel for the petitioner , is not oppose d by the learned counsel for the c ontesting respondent No.1. 5. In view of the above, the i m pugned award (supra), is her e by ordered to b e modified, only to the extent that the petitioner is liable to p ay Rs.26,24,3 7 5/-, along with the compe n sation amount to the tune of Rs.10,000/-, as mental harassment and Rs. 5 ,000/-, as litigation expenses. T he MANPREET SINGH 2025.03.28 18:13I attest to the accuracy andpetitioner i s also liable to pay the interest @ 8% per annum, on the awar d ed authenticity of this order/judgment

CWP-3577-2025 4

amount, fro m the date of filing the applicati o n, till its realization.

The rest of the award is ord e red to be maintained, except t he modificatio n (supra). The petitioner is direc t ed to comply with the undertak i ng given to this Court, within a period of fou r weeks from the date of receip t of certified co p y of this order/judgment.

In case, the petitioner fails to d eposit the said amount, within t he stipulated p e riod, the respondent No.1, wo u ld be entitled to get interest @ 9 %, as awarded b y the learned Permanent Lok A dalat concerned.

Consequently, the instant writ p etition is disposed of.

(KULDEEP TIWARI) JUDGE

March 26, 2 025 Manpreet

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

MANPREET SINGH 2025.03.28 18:13 I attest to the accuracy and authenticity of this order/judgment

Procedural history

How this case reached the court

AI extract

Order under challenge
Award dated 16.10.2024 (Annexure P-1) of the Permanent Lok Adalat, Panchkula, holding respondent No.1 entitled to the insured declared value of truck HP-93-3833 (₹ 26,24,375/-), ₹ 10,000/- as mental harassment, ₹ 5,000/- as litigant expenses, and interest @ 9% per annum on the awarded amount, subject to pre-payment formalities; challenged by the petitioner-insurer through CWP-3577-2025.¶12
Permanent Lok Adalat, Panchkula · 16.10.2024
Prior proceeding
Vide order dated 07.02.2025 at the notice-of-motion stage, this Court recorded the consensus between the counsel for the petitioner and respondent No.1 and directed their representatives to appear at R.T.O. Baddi at Nalagarh on 17.02.2025 at a mutually settled time so that the RC of the vehicle could be transferred and the requisite formalities completed; notice of motion was issued to respondent No.1 only, and service thereof was waived by Mr. Suryaveer Surjewala.¶23
Prior proceeding
Under the impugned award, respondent No.1 was held entitled to interest @ 9% per annum on the awarded amount from the date of filing the case till its realization, alongside the insured declared value of ₹ 26,24,375/-, ₹ 10,000/- as mental harassment and ₹ 5,000/- as litigant expenses.¶17
Prior proceeding
The award stipulated pre-disbursement formalities: (1) transfer/cancellation of the RC in the petitioner's name; (2) Letter of Indemnity on Rs. 100/- Non-Judicial Stamp paper, notarized with Rs.5/- stamp, signed by two independent witnesses with attested Aadhar/Pan cards; (3) Letter of Subrogation on identical terms; (4) financier NOC or payment to the financier if the vehicle is financed; (5) bank details, preferably cancelled cheque; and (6) KYC form with 2 photos — all to be submitted to the Claim Hub.¶18
Prior proceeding
At the hearing on 26.03.2025, counsel for the petitioner reported that respondent No.1 had completed the directed formalities and the RC stood transferred in the petitioner's name, leaving no legal impediment; the petitioner was not agitating the claim on merits and undertook that, if the interest were reduced from 9% to 8%, it would deposit the entire awarded amount with interest @ 8% before the Permanent Lok Adalat within four weeks.¶24