NATIONAL INSURANCE COMPANY LTD Vs. MOHINDER KUMAR BALI

JUDGEMENT

(1.) THE appellants in the instant Special appeal have assailed the order of the learned Single Judge whereby the charge sheet issued against the respondent by the appellants was quashed. After hearing the submissions in detail we allowed the appeal and passed the following order :

(2.) THE reasons in support of our findings are thus : Briefly stated the facts of this case are that, one Lallu Prasad Gupta applied for loan under 'pradhan Mantri Rojgar Yojana' from the State of Bank of Bikaner and Jaipur, Sikandara Branch, District Dausa (in short the 'bank' ). The Bank approved the loan of Rs. 56,000/- for a cloth shop. Lallu Prasad Gupta got his shop insured with the appellant National Insurance Company Limited (for short the appellant Company) for the period August 8, 1995 to August 7, 1996 for a risk of Rs. 50,000/ -. Lallu Prasad Gupta in his application form gave his address as Gurjar Bainada, Tehsil Sikrai, Distt. Dausa. A theft took place in the cloth shop of Lallu Prasad Gupta situated at Sikandra Chauraha which was run by him in the name and style of M/s. Khandelwal Textiles in his proprietorship. Lallu Prasad Gupta lodged an FIR on October 23, 1995 and initiated a claim through his Bank to the appellant company on October 25, 1995. After submission of the claim form, Shri S. S. Khandelwal, Surveyor of the appellant Company has conducted a survey and placed his report on February 17, 1996. One Pankaj Malik, Chartered Accountant, was appointed by the Divisional Manager of the appellant Company to carry on investigation in the case in regard to loss sustained by Lallu Prasad Gupta, proprietor of M/s. Khandelwal Textiles, Sikandara Chauraha, Sikandara, due to theft at his shop. After submission of the report and the claim case, the papers were placed before the respondent Mohinder Kumar Bali, who at the relevant time was Divisional Manager of the appellant Company at its Divisional Office, Sawai Madhopur for approval of the claim which was approved by him.

(3.) THE respondent has been given a chargesheet under Rule 25 of the General Insurance (Conduct, Discipline and Appeal) Rules, 1975 (for short the Rules of 1975) stating that when he was posted as Divisional Manager Sawai Madhopur, he approved the claim of Lallu Prasad Gupta in most casual manner. The shop where the theft took place was situated at Geejgarh Road, Sikandara Chauraha, Sikandara, whereas the address on the cover note for the property insured was given as Village Gurjar Bainada, Tehsil Sikrai, District Dausa and thus before approving the claim the respondent was required to send the claim file to the competent authority in the Regional Office of the appellant company for rectification in the policy for change in the situation of risk. The respondent approved the claim of Rs. 50,000/simply on the basis of assessment given by the Surveyor which included stock belong to M/s. Lallu Prasad Gupta and M/s. Khandelwal Textiles whereas the fact was that the appellant company's liability was only to the tune of Rs. 27,786/ -. The respondent acted in gross negligent manner while discharging his duties and violated the norms and procedure prescribed by the appellant company for settlement of the claim.