NATIONAL INSURANCE CO LTD Vs. NARENDRA KUMAR JHANJHRI

JUDGEMENT

(1.) The National Insurance Company Limited and its Chairman-cum-Managing Director, Manager, Assistant General Manager; Manager, Complaint Cell; Senior Divisional Manager; Branch Manager and Assistant Administrative Officer have filed this application under S.482, Cr. P.C. for quashing the impugned order dated 13-1-84 taking cognizance of the offences under Sections 406, 420 and 120B of the Indian Penal Code on the basis of a complaint No. 172 of 1983 filed by Narendra Kumar Jhanjhri, complainant-Opposite party.

(2.) The complainant-opposite party has said in the said complaint that he is the proprietor of M/s. Premier Glass Industries, Jhumritalaiya (in short 'the Industries'), that on 5-10-81 the Industries was insured on payment of Rs. 6,900/- for one year under Comprehensive Policy No. 456/P/3101278/81 and 7501188 by the National Insurance Company Ltd. against all kinds of Natural calamities, theft and burglary and the policy was issued for ten lakhs, that the proprietor was induced by the accused No. 7 (petitioner No. 8) namely K.K. Choudhury, Assistant Administrative Officer who was the then Branch Manager of the National Insurance Company at Jhumritalaiya. This K.K. Choudhury, the then Branch Manager of the National Insurance Company by giving false assurance asked the proprietor of the Industries to pay Rs. 6,900/- for such policy as a premium for a period of one year on which the proprietor of the Industries got his Industries insured with the said Insurance Company and delivered a cheque No. 357751 dated 5-10-81 drawn on the State Bank of India, Jhumritalaiya Branch for Rs. 6,900/-. During the relevant period the Industries was under mortgage with the State Bank of India, Jhumritalaiya, on account of loan advanced to its proprietor for the development of the Industries. On payment of Rs. 6,900/- as per annum premium at the time of getting the Industries insured the Insurance Company granted a receipt No. 1336052 dated 10-10-81. On 25-3-82 the insured premises were badly damaged resulting in almost closure of the entire Industries because of lightning squall followed by cyclonic storm which was natural calamity beyond the human control. This matter was immediately reported to the police who made proper investigation into the matter. The incident was immediately reported to the Insurance authorities concerned and claim was made for Rs. 6,64,548/- (i.e. actual loss after deduction of salvage value), the loss sustained by the said Industries on which the Insurance Company appointed a surveyor who surveyed and verified the loss and damages sustained due to abovementioned calamities. Because the proprietor was facing financial crisis therefore he invited partners for the said Industries and on his requests Narendra Kumar Jhanjhri, complainant-opposite party and Manmal Jhanjhri became the partners to run the firm and this fact was brought to the knowledge of the authorities including Mr. A.K. Gupta, Investigator, Calcutta. Several reminders were issued to the authorities i.e. the accused persons to settle the claim and also oral request were made to all the accused persons to make good the loss as promised and assured by them which is covered under the policy referred to above. The accused persons who have dishonest intention to cheat the proprietor and his partners did not pay any heed to the requests and reminders sent to them. Ultimately, the complainant being a managing partner of the said Industries instructed his lawyer to give a pleader's notice to the accused persons. When the notices were served upon the accused persons, the Divisional Manager, Patna, sent a reply to the complainant by his letter dated 12-10-83 and refused to pay the claimed amount of the complainant. On receipt of this letter the complainant-opp. party along with witness No. 2 went to the superior authority (accused No. 3) to know the actual position land circumstances under which the reply was given to him, but he was told that the matter was under consideration and it would be settled by the third week of December 1983 positively and so the complainant was misled by the representation that the matter would be finalised as assured by the accused persons. The complainant's brother witness No. 4 went to Calcutta to request the accused No. 3 to expedite the matter but the authorities at Calcutta told his brother that the had authorised the Divisional Manager, Patna, to settle the claim and to pay the amount. Then the complainant waited till the 29th December, 1983 but the accused did not settle the claim nor paid any amount. The partner of the complainant with utmost good faith entrusted Rs. 6,900/- to the accused persons and the accused persons dishonestly misappropriated the said amount to their own use and they did not discharge the legal contract which they have made in form of the policy and thereby they committed offence punishable under S.406, I.P.C. Further the accused persons have conspired together by their conduct and liabilities and they agreed to commit an illegal act by not paying the sum claimed for the loss sustained and thereby they were liable to be punished under S.120B, I.P.C.

(3.) The learned Judicial Magistrate examined the complainant on solemn affirmation and his three witnesses namely Satyanarain Prasad (P.W. 1), Binod Kumar Sarraf (P.W. 2) and Suresh Jhanjhri (P.W. 3). The learned Judicial Magistrate perused the copy of the complaint, statements of he three witnesses and after seeing the photostat copies of the receipts, notices acknowledgments and records found a prima facie case under Ss.406, 420 and 120B, I.P.C. against the accused persons and issued notices to them (petitioners) and fixed 3-2-84 for their appearance in the Court. The petitioners filed this application on 9-3-84 and got an interim order dated 12-3-84.