STATE BANK OF INDIA Vs. CHANCHAL SINGH

JUDGEMENT

(1.) ORDER dated 10 -09 -2007; passed by the Learned Divisional Forum Jammu (hereinafter to be referred to as the Forum) has been challenged in this appeal. The learned Forum in terms of the impugned order has granted relief of Rs. 30,000/ -(thirty thousand) in favour of respondent alongwith interest @ 6% per annum from the date of filling the complaint till full realization. Litigation expenses were also granted in the sum of Rs. 2000/ - (Two thousand).

(2.) IN rebuttal Mr. Rakesh Sharma, Advocate has contended that even after the accident, which took place on 02 -05 -2001, the appellant suo moto got the tractor in question insured within 45 days i.e. on 12 -06 -2001 and that insurance policy still continues. In this way, lawful duty cast upon the appellant under Clause 9 of the Hypothecation deed in practice was observed as that of obligatory nature. While concluding his arguments, the Learned Counsel has stated that the ratio deciendi of the case of Gh. Mohd Peer as has been relied by the Learned Forum fully applies to the present case and the appeal requires dismissal.

(3.) WE have carefully considered the submissions of the counsel appearing for the parties. In the case of Gh. Mohd Peer the borrower had mortgaged residential house and the stocks were hypothecated with bank while -as, in the given case vehicle is in the shape of tractor, which is a Motor Vehicle, was hypothecated to the Bank, as the owner had taken loan from it to purchase it. It was therefore obligatory for the owner (respondent herein) to take the insurance policy as provided under chapter XI of the motor Vehicle Act -(shortly the Act hereinafter). Almost an identical matter came out before Hon'ble Apex Court. The matter was examined in light of the appropriate law whereupon the Hon'ble court held as under: -