ORIENTAL INSURANCE CO. Vs. KRISHNA RANI

JUDGEMENT

(1.) This Civil Revision by the defendant, namely, The Oriental Insurance Company is against the finding of the court below, on issue No. 2, in the suit for recovery of a sum of Rs. 11,19,255.14 p. as compensation for the loss sustained by the plaintiff in an accident to his vehicle insured with the defendant. The accident was on 14 -1 -1983 the plaintiff submitted a claim to the defendant on 5 -9 -1983. The defendant repudiated the claim on 18 -6 -1984. The suit was filed on 18 -1 -1986. Issue No. 2 in the suit is "Whether the claim is within time"? The court below following the decision of the Karnataka High Court in AIR 1988 Knt 185, The Secretary Taluka Agricultural Produce Co -operative Marketing Society Ltd. Shidlaghatta v. The Custodian New India Assurance Co. Ltd., Bombay and another, decided the issue against the defendant and has held that the suit is within time.

(2.) Ex. RA is the Policy of Insurance of the vehicle involved in the accident. The Policy contains a clause stipulating that the Insurance Company shall not be liable for any loss or damage if no suit is filed within 12 months after the date of the disclaimer. The present suit is filed long after 12 months after the disclaimer and the Insurance Co. has raised the contention that the Insurer is not liable for any loss or damage to the vehicle The Court below has held that the period of limitation is three years under Article 44 (b) of the Limitation Act and the suit is within time.

(3.) The decisions in AIR 1914 Bombay 225, The Baroda Spinning and Weaving Co. Ltd. v. Satyanarayan Marine and Fire Insurance Co. Ltd, AIR 1934 Rangoon 15, A.N Ghose v. Reliance Co. and another, AIR (36) 1949 Calcutta 390, Dawood Tar Mahomed Bros, and others v. Queensland Insurance Co Ltd., AIR (37) 1950 (East) Punjab 352, The Ruby General Insurance Co Ltd. v The Bharat Bank Ltd. and others, and AIR I960 Punjab 236 (Full Bench), Pearl Insurance Co. v. Atma Ram, had considered a similar question and it was held that an agreement restricting the insurers liability with reference to the time within which the claim is to be enforced is perfectly valid in law The decisions in AIR 1914 Bombay 225, AIR 1949 Calcutta 390 and AIR 1950 (East) Punjab 352 (supra) were approved by the Supreme Court in AIR 1976 SC 287, The Vulcan Insurance Co. Ltd, v. Meharaj Singh and another.