UNION OF INDIA Vs. JAWAHAR LAL KOUL

JUDGEMENT

(1.) THE Union of India has been called upon to pay a sum of Rs. 1.50 lacs to the complainant with interest at the rate of 18 percent. The circumstances under which this liability came to be fastened on the Union of India be noticed : The complainant Jawahar Lal Koul was carrying on business in Shop No. 35, located in Government Central Market, Srinagar. He was engaged in the business of sale of shawls and silk goods. The complainant had obtained an insurance cover in the sum of Rs. 1.50 lacs. This was valid upto 20th August, 1990. The complainant had migrated to Jammu. However, he wanted to renew the insurance policy. He got a bank draft for a sum of Rs. 352/ -. This was obtained from the Jammu and Kashmir Bank Ltd., Chand Nagar, Jammu, payable to the Insurance Company. According to the complainant, this was sent by a registered post on 20th August, 1990. Then complainant learnt that his shop was destroyed in a fire related incident on 21st January, 1990. He lodged a claim with the Insurance Company. This was not honoured as the Insurance Company informed the complainant that the premium in question was not received. Accordingly, a complaint was filed. In this, the Divisional Manager, United India Insurance Company, Srinagar and also the Union of India through Ministry of Postal Services was arrayed as respondent

(2.) THE Postal Department took shelter behind Section 6 of the Indian Post Office Act and claimed immunity from the liability. As the Union of India had not taken any stand vis -a -vis receipt of a letter for onward transmission at Post Office, Branch Subash Nagar, Jammu, it was presumed that the draft in question was prepared by the complainant but on account of I negligence of Union of India and its employees, the same could not be delivered to the Insurance Company. A finding stands recorded that the complainant had done what he was supposed to do. For the negligence of the Postal Department, the Union of India has been called upon to meet the loss said to have been caused to the complainant. The findings which have been recorded are as under:

(3.) ANOTHER question which was required to be gone into was as to what is the effect of the draft having been got prepared and the same having been dispatched and whether the amount had become available to the Insurance Company and whether the Insurance Company could be made liable on the analogy that when it receives a cheque, which is ultimately not encashed, it is still liable.