NATIONAL INSURANCE CO LTD Vs. SANJORI DEVI

JUDGEMENT

(1.) IN the instant writ petition the petitioner prays for issuance of a writ of certiorari or any other appropriate writ, order or direction for quashing/setting aside of the Award dated 12-12-2006 passed by the Permanent Lok Adalat, Dhanbad in exercise of its power under the Legal Services authority Act, 1987 through which he has directed the petitioner to pay Rs. 5,00,000/-with interest @ 9% to the respondent No. 1.

(2.) THE facts, in brief, are set out as under : The respondent herein filed a claim application for payment of the sum assured to the extent of Rs. 5,00,000/- on account of death of Dhananjay Kumar Singh who was covered under personal accident policy with the petitioner. However, the petitioner authority disputed the claim on the ground that no supporting document regarding specific cause of death was enclosed and accordingly repudiated the claim vide its letter dated 23-11-2004. The respondent herein filed the claim against the aforesaid order before Permanent Lok Adalat, Dhanbad which was registered as P. L. Case No. 1253 of 2005. Upon notice the petitioner authority challenged the maintainability of the case before the Permanent Lok Adalat.

(3.) THE main contention raised by the counsel for the petitioner is that Permanent lok Adalat had no jurisdiction to adjudicate the claim of the respondent and it should have remitted the matter back to the Civil courts. It has further been submitted that unless the conciliation proceeding was conducted as required under Section 22c (4) of the Legal Services Authority Act, 1987 it had no jurisdiction to decide the dispute in absence of any compromise or settlement. Finally, the Award was passed on 12-12-2006 by the Permanent Lok Adalat in exercise of the power under the Legal Services Authority Act, 1987 vide which the petitioner authority was directed to pay Rs. 5,00,000/-along with interest @ 9% per annum to the respondent herein.