RAJDEEP LEASING AND FINANCE Vs. NEW INDIA ASSURANCE COMPANY LTD

JUDGEMENT

(1.) This appeal has been filed by the complainant in Case No. C 62/90 on the file of the State Commission, Delhi challenging the order dated February 13,1991 passed by the State Commission dismissing the complaint petition on the ground that the proper remedy to be pursued by the complainant was to institute a suit in the regular Civil Court.

(2.) The complainant is a financing company, whose activities include the financing of purchase of motor vehicles on hire purchase basis. Under such an arrangement the complainant hired out a truck bearing registration No. DEL-2193 to the opposite party No. 3 under a hire purchase agreement dated July 10,1986. At the time of entering into the said agreement the complainant company, at the instance of opposite party No.3, got the truck insured with the New India Assurance Company Ltd. (Opposite Party No.2) and got the policy renewed from year to year. The insurance policy in respect of the said vehicle had been renewed for the period from 21.4.1987 to 27.4.1988 for a sum of Rs. 2,40,000/- and the policy had been assigned in favour of the complainant. The case put forward by the complainant is that while the aforesaid vehicle was being plied by the opposite party No. 3, the vehicle was stolen on September 29, 1987 from Uttam Nagar Bazar where it had been parked by its driver. Thereupon the driver employed by opposite party No. 3 lodged F.I.R. No.281/87 under Section 379 I.P.C. with the "Police Station, Vikaspuri, New Delhi and simultaneously intimation regarding the alleged theft was given to the Insurance Company also. Ultimately, the police could not trace the vehicle and a final report dated May 26, 1988 to the effect that the vehicle was not traceable was filed before the Magistrate.

(3.) The opposite party No.3 then lodged a claim with the Insurance Company for payment of the full value of the stolen vehicle. The said claim was pursued by the complainant in its capacity as the assignee of the policy. The Insurance company by its letter dated June 12,1989 addressed to the complainant repudiated its liability. Thereupon the complainant sent a legal notice to the Insurance Company on November 21,1989 in response to which the insurer again repudiated its liability. Thereafter the complainant approached the State Commission with the prayer that the opposite party Nos. 1 and 2 should be directed to pay to it the amount of Rs. 2,40,000/- with interest at 18 per cent per annum from the date of lodging the claim till the date of payment.