ORIENTAL INSURANCE CO. LTD. Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) This petition has been filed by the Oriental Insurance Company Limited questioning the legality and propriety of award dtd. 28/8/2012 (Annexure P-1) passed by the Permanent Lok Adalat (Public Utility), Bastar, Place Jagdalpur in Case No.37/2012, whereby the claim made by the respondent No.3-J. C. Construction Company under Sec. 22(C) of the Legal Services Authorities Act, 1987 (hereinafter referred to as 'the Act, 1987') has been allowed while directing the Insurance Company to pay a sum of Rs.24.00 Lakhs (Twenty four Lakh only) with interest @ 7.5 % per annum from the date of filing of the claim form dtd. 25/6/2007.

(2.) Briefly stated the facts of the case are that the claim enumerated under Sec. 22(C) of the Act, 1987 has been made by the respondent No.3 before the Permanent Lok Adalat claiming compensation to the tune of Rs.24.00 Lakhs by submitting, inter alia, that the Poklane Machine bearing No.Tata Hitachi EX-110-Number-1101-0120 (hereinafter referred to as 'the machine in question') owned by him was destroyed by unknown naxalites near the village Katekalyan of District Dantewada on 8/6/2007 while burning it, owing to which, a report was lodged before the Police Station Katekalyan, District Dantewada. Since it was insured with the Insurance Company for Rs.24.00 Lakhs, therefore, an intimation to this effect was reported to the Insurance Company on 9/6/2007. It is pleaded further that a Surveyor of the Insurance Company has inspected the spot on 12/6/2007 and thereafter, the claim was made before the Insurance Company, but, has not been considered even after the issuance of notices, issued on 30/11/2011 and 20/1/2012, which compelled him for institution of the claim, instituted on 7/4/2012.

(3.) In reply to the aforesaid claim, it was stated by the Insurance Company that since the machine in question was not insured, as claimed, therefore, no liability could be fastened upon it.