This Court has carefully gone through the permit which is
on record and the National Permit is certainly valid up to
13.10.2017. The authorization fee was required to be paid only
when the truck was moving out of State of Bihar as it was
registered in the State of Bihar and the truck caught fire on
account of short-circuit on 08.06.2014 in the State of Bihar itself
and, therefore, the respondent company could not have
repudiated the claim on such a frivolous ground. The permit in
question was issued by the competent authority in Bihar and,
therefore, there was no requirement of paying authorization fee
when the truck was being used in the State of Bihar and as per
the terms and conditions of the National Permit, authorization fee was required to be paid only when the truck was moving out of State of Bihar. Thus, in the considered opinion of this Court, the appellant was certainly entitled for the insurance claim as held by the State Commission and, therefore, the order passed by the National Commission, dated 19.08.2020, deserves to be set aside and is accordingly set aside. {Para 8}
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVILAPPELLATE JURISDICTION
CIVILAPPEAL NO. OF 2025
Shri Binod Kumar Singh Vs National Insurance Company Ltd.
SATISH CHANDRA SHARMA, J.
Dated: February 7 th, 2025.
Citation: 2025 INSC 154.
1. Leave Granted.
2. The present appeal is arising out of order dated 19.08.2020
passed by National Consumer Disputes Redressal Commission,
New Delhi, (for short, “the National Commission”) in First
Appeal No. 1778 of 2017 .
3. The facts of the case reveal that the appellant before this
Court is the owner of Truck bearing registration No. BR-02-
Q9220 make TATA-251625.0LPKTC. The truck was insured
with the respondent National Insurance Company for a period of
one year i.e. from 18.09.2013 to the midnight of 17.09.2014 and
unfortunately, the truck caught fire on account of short-circuit on
Paragraph 8 discusses the validity of the National Permit for the
appellant’s truck. Hon'ble Apex Court confirms that the permit was
valid up to 13.10.2017 and clarifies that the authorization fee needed
to be paid only when the truck was moving out of Bihar. As the truck
caught fire within Bihar on 08.06.2014, there was no requirement for
an additional fee. Hon'ble Apex Court found the insurance company’s
denial of the claim to be frivolous and directed them to process the
claim with interest, setting aside the National Commission's order.
08.06.2014 meaning thereby during the validity of insurance
cover.
4. The appellant preferred a complaint before the State
Consumer Disputes Redressal Commission, Bihar, Patna (for
short, “the State Commission”) and the State Commission
placing reliance on the judgment delivered in the case of
National Insurance Company Vs. Nitin Khandelwal (Criminal
Appeal No. 8463/2014) directed the respondent insurance
company to settle the claim on non-standard basis within a period
of three months if other requirements were fulfilled by the
appellant.
5. The respondent National Insurance Company being
aggrieved by the order passed by the State Commission dated
07.07.2017 preferred an appeal before the National Commission
and the National Commission has allowed the appeal holding that
the judgment delivered by this Court in the case of Nitin
Khandelwal (supra) does not help the appellant as it was a theft
case whereas the present case relates to damage by fire. The
National Commission after placing reliance upon the judgment
delivered in the case of Amrit Paul Singh and Anr. Vs. TATA
AIG General Insurance Co. Ltd. & Ors. (2018) 7 SCC 558 has
allowed the appeal and held that the insurance claim cannot be
allowed in the absence of any valid permit thereby setting aside
the order passed by the State Commission.
6. Learned counsel for the appellant has vehemently argued
before this Court that the All India Permit (National Permit) was
issued having validity period with effect from 14.10.2012 to
13.10.2017 and for State of Bihar, the permit was in force from
13.10.2012 to 13.10.2013 meaning thereby, on the date the truck
caught fire on 08.06.2014, there was a valid National Permit in
existence.
7. Learned counsel for the respondent National Insurance
Company has vehemently argued before this Court that as per the
terms and conditions of the permit, the fee was deposited for a
period with effect from 13.10.2012 to 13.10.2017 and the
authorization fee was not deposited beyond 14.10.2013 and,
therefore, and in the absence of non-depositing of authorization
fee, National Permit cannot be said to be a valid permit.
8. This Court has carefully gone through the permit which is
on record and the National Permit is certainly valid up to
13.10.2017. The authorization fee was required to be paid only
when the truck was moving out of State of Bihar as it was
registered in the State of Bihar and the truck caught fire on
account of short-circuit on 08.06.2014 in the State of Bihar itself
and, therefore, the respondent company could not have
repudiated the claim on such a frivolous ground. The permit in
question was issued by the competent authority in Bihar and,
therefore, there was no requirement of paying authorization fee
when the truck was being used in the State of Bihar and as per
the terms and conditions of the National Permit, authorization fee
was required to be paid only when the truck was moving out of
State of Bihar. Thus, in the considered opinion of this Court, the
appellant was certainly entitled for the insurance claim as held by
the State Commission and, therefore, the order passed by the
National Commission, dated 19.08.2020, deserves to be set aside
and is accordingly set aside. The respondent National Insurance
Company is directed to process the claim of the appellant and to
pay the amount to the appellant within a period of 60 days from
today. It is needless to mention that the claim became due in the
year 2014 and it was repudiated by the respondent National
Insurance Company in the year 2014 itself. The order of the State
Commission allowing the claim was passed in the year 2017
which was reversed by the National Commission in the year
2020. Therefore, in the considered opinion of this Court, the
appellant was not only entitled for the entire claim amount right
from the date it became due but he is also entitled for interest
from the date of the complaint made before State Commission till
the date, the amount is actually paid to him. The appellant shall
be entitled to interest @ 9% per annum and the same with the
proposed amount be paid positively within 60 days from today.
9. With the aforesaid, the appeal stands allowed. No orders
as to costs. Pending applications, if any, shall stand disposed of.
……………………………………J.
[B. V. NAGARATHNA]
……………………………………J.
[SATISH CHANDRA SHARMA]
NEW DELHI
February 7 th, 2025.
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