SOUTH INDIAN BANK LTD Vs. A ABDUL HAMEED

JUDGEMENT

(1.) THE appellant South Indian Bank Filed OA against the defendants for the claim amount. THE PO, DRT, Ernakulam, by Order dated 13.8.2001 disallowed the claim of the Bank as against D10 the Oriental Insurance Company Ltd., holding that the claim is not maintainable. THE appeal is directed as against the Order passed by the PO, DRT, Ernakulam, disallowing the claim of the Bank as against D10 and also the rate of interest awarded by the Tribunal.

(2.) Counsel for the appellant Bank submits that D10 the Oriental Insurance Company Ltd., is also liable to pay the amount as claimed by the Bank with future interest at rate of 18.5% per annum. The appellant has also prayed for realisation of interest at 18.5% p.a. as claimed in the plaint from the date of Suit till realisation on the decree amount of Rs. 24,33,519.48 p. As against the Insurance Company, the Bank claimed a sum of Rs. 17,71,581.73 p. Counsel for the appellant Bank argued that the Insurance Company is liable for that amount as insurance Policy has been taken and as per the Insurance policy, D10 the Insurance Company is liable for non-delivery of the goods by the Carriers D7 to D9 and admittedly there is non-delivery of goods by the Carriers.

(3.) COUNSEL appearing for the Insurance Company submitted that the Insurance Company is not liable for this claim and the Insurance Company also sent a letter to that effect to the plaintiff Bank and the plaintiff Bank also did not issue notice to the Carriers within time with regard to the non-delivery of the goods and so the Insurance Company is not liable. The PO, DRT, has found that the Insurance Company is not liable on the ground that the Bank did not prefer the claim within the permitted time and no survey as required under the policy was made even though the Policy covers the risk of non-delivery of goods. Admittedly, the Insurance policies covers the risk of non-delivery of the goods. Ex. A21 series are the Insurance policies in respect of the consignments covered under Exs. A8 to A19. The Insurance policies evidenced by Ex. A21 series were admittedly assigned in favour of the Bank along with the originals of Exs. A8 to A16 lorry receipts and Exs. A17 to A19. The PO, DRT has found that the Insurance Company is not liable since the Bank did not make the claim within the permitted time. COUNSEL for D10 the Insurance Company relies upon the letter of the Insurance Company dated 15.1.1986 and submits that the Insurance Company has already replied that M/s. A. Abdul Hameed have not taken any legal action against the Carrier for non-delivery of the consignments within six months from the date of despatch of each consignment. The Insurance Company has written letter to the Branch Manager of the plaintiff Bank stating that non-clearance of bill do not come under the purview of the policy and no notice was preferred within six months from the date of despatch of each consignment.