NEW INDIA ASSURANCE CO LTD Vs. SHIV KUMAR

JUDGEMENT

(1.) Brief facts of this case are that vehicle No. HP-48-2742 (Mohindra & Mohindra) was owned by the respondent and was admittedly insured with the appellant on the date of its accident i.e., 10.7.2001.

(2.) Now the dispute starts, as according to the appellant, on the date of accident vehicle was being plied in a utter disregard of and in violation of the terms and conditions of the policy of insurance subject to which it was insured. Because unauthorised four fare paying passengers besides Newspapers were being carried in the vehicle for hire and reward. In this background, according to the learned Counsel for the appellant his client has been wrongly held liable for payment of Rs. 2,45,000 within 30 days of the order failing which interest has been levied on this amount at the rate of 9% per annum w.e.f. 1.5.2002 i.e., the date of petition till payment. While advancing case of his client Mr. Sharma stated that without giving up his earlier pleas, in the alternative he submitted that since this case has been ordered to be settled on total loss basis salvage should have been ordered to be returned to his client, failing which its price as assessed by the surveyor should have been ordered to be deducted out of Rs. 2,45,000 thus, he prayed for allowing this appeal on this ground as well.

(3.) All these pleas have been controverted by Mr. Sanjeev Bhushan, learned Counsel on behalf of the respondent. However, he fairly stated that since the case has been settled on total loss basis, he will not be able to support the order so far as it is silent regarding return of the salvage.