- (1.) This writ petition is directed against order dated 23.10.08 passed by the Permanent Lok Adalat, District Legal Services Authority, Bhilwara, allowing the application preferred by the first respondent herein under Section 20 read with Section 22 of the Legal Services Authority Act, 1987 ( for short "the Act") and consequently directing the petitioner herein to pay a sum of Rs. 64,995/- alongwith interest @ 10% for the period commencing from 13.4.05. It is further ordered that if the amount is not paid within a period of two months, the amount payable shall carry interest @ 12%.
(2.) The relevant facts are that the first respondent's vehicle RJ-06-E-2062, an ambulance car, was insured with the Petitioner Insurance Company for the period 21.2.04 to 20.2.05. On 12.10.04, on account of vehicular accident, the said vehicle was badly damaged. After spot survey and final survey, the Authorised Surveyer and the Loss Assessor assessed the net loss at Rs.64,995.34, subject to the terms and conditions of the insurance policy. The Petitioner Insurance Company repudiated the claim on the ground that the vehicle was being driven by Mr.Rameshwar Lal Jat, who was not authorised to drive the transport vehicle. According to the Petitioner Insurance Company, the first respondent willfully violated the policy condition by handing over the vehicle to a person who was not possessing a valid and effective driving license to drive the transport vehicle.
(3.) In these circumstances, the petitioner preferred an application under Section 20 read with Section 22 of the Act before the Permanent Lok Adalat, Legal Services Authority, Bhilwara, seeking directions to the Petitioner Insurance Company, to pay the loss caused to the vehicle, quantified at Rs. 1,00,000/- alongwith interest @ 18% per annum. That apart, the petitioner claimed compensation for mental harassment quantified at Rs.25,000/-.;