(1.) -ADMITTED facts of this case are that the vehicle bearing registration No. HP-37-A-3174 was insured by the appellant for the period 21. 3. 2002 to 20. 3. 2003. It was a brand new truck and it met with accident on 11. 5. 2002, i. e. within less than six months of its purchase and insurance. It was insured in the sum of Rs. 8 lacs with the appellants. This truck was financed by the Tata Finance Limited. Sum of Rs. 6,78,500 was paid on 15th October, 2003 to the financier.
(2.) IT appears that after four months of the accident the respondent approached the appellant with a prayer to pay him Rs. 6,80,000 including salvage of the accidental vehicle in question. After receipt of this, the appellant paid the amount after one year to the financier and receipt in this behalf is Annexure R-2. This voucher is not signed by the respondent, what is its effect will be dealt with hereafter.
(3.) IN case the appellant accepted the offer on 23. 9. 2002 made vide Annexure R-1, it ought to have immediately released the amount and handed over the salvage to the respondent. For reasons best known to it, appellant slept over the matter until it made the payment on 15. 10. 2003 vide Annexure R-2 to the financier without associating the respondent. In this behalf what appears to have happened is that the respondent while submitting Annexure R-1, that the loan amount was multiplying because of non-payment of instalments and that appears to be the reason for his having agreed to the amount mentioned in Annexure R-1 on 23. 9. 2002. In this behalf we have no hesitation in observing that consent should have been either accepted in its entity or should have been rejected. Salvage has not been handed over to the respondent as there is nothing on record in that behalf produced by the appellant.