8/13/2019 01425

1/18Page 1

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 5 OF 2013(Arisin !"# !$ SLP(C% N!. 2012& !$ 2011%

M'n'r) N'#i!n'* Ins"r'n+ C!. L#,. -- A**'n#

Vs.

S'/" P. P'"* 'n, An!#r --Rs!n,n#s

JUDGMENT

R.M. LODHA, J.

L' r'n#,.

2. T '**'n#) ins"r'n+ +!'n) is in ''* 4 s+i'*

*' ''ins# # /",n# 'n, !r,r ,'#, 23.03.2011 r4 #

Diisi!n Bn+ !$ # 6r'*' Hi C!"r# '**!, # ri #i#i!n 'n,

ri, i#s !r,r ,'#, 07.11.2010 'n, *, #'# # ins"r'n+ +!'n

's *i'4* #! ' +!ns'#i!n in s" !$ Rs. 2)88)0009: i# 7; in#rs#

1

8/13/2019 01425

2/18Page 2

#r!n #! # +*'i'n# ''r,, 4 # M!#!r A++i,n# C*'is Tri4"n'* in

i#s ''r, ,'#, 23.0&.2002.

3. T

8/13/2019 01425

3/18Page 3

5. T ins"rr $i*, i#s ri##n s#'#n# 'n, !!s, #

+*'i'n#>s +*'i ins!$'r 's i# 's +!n+rn,. T ins"rr s# " # *'

#'# # i+* 's ' !!,s i+* 'n, # ris !$ # 'ssnrs

#r'**in in # !!,s i+* 's n!# +!r, "n,r # !*i+ !$

ins"r'n+. I# 's s#'#, in # ri##n s#'#n# #'# n'r* 50

"n'"#!ris, 'ssnrs r #r'**in '# # #i !$ '++i,n# # r

n!# #r'*in in # i+* in "rs"'n+ !$ # +!n#r'+# !$ *!n#)

s"+ 's *!',in 'n, "n*!',in n!r # r #r'**in 's # !nr !$ #

!!,s !r # rrsn#'#i !$ # !nr !$ # !!,s 'n, n+ #

ins"rr +!"*, n!# 4 s',,*, i# 'n *i'4i*i#.

@. T Tri4"n'*) '$#r r+!r,in # i,n+ 'n, 'rin #

'r#is) !n 23.0&.2002) 'ss, 'n ''r, in $'!"r !$ # +*'i'n# !*,in

#'# 's n#i#*, #! ' #!#'* +!ns'#i!n !$ Rs. 3)00)0009:. T *i'4i*i#

!$ # ins"rr 's ', /!in# 'n, sr'* i# # !nr 'n, ,rir.

&. Bin n!# s'#is$i, i# # ''r, !$ # Tri4"n'*) # ins"rr

$i*, 'n ''* 4$!r # 6r'*' Hi C!"r#. T Diisi!n Bn+ !$ #'#

C!"r# 4 r*in "!n ,+isi!ns !$ #is C!"r# in New India Assurance Co.

Ltd.. Asha Rani and others1'n, National Insurance Co. Ltd. . Cholleti

Bharatamma and Others2 '**!, # ''* !$ # ins"rr i, /",n#

'n, !r,r ,'#, 07.11.2010. T Diisi!n Bn+ *, #'# ins"rr 's n!#

*i'4* 's r'#"i#!"s 'ssnrs #r'**in in ' !!,s i+* r n!#

1 (2003) 2 SCC 2232 (2008) 1 SCC 423

3

8/13/2019 01425

4/18Page 4

+!r, "n,r # !*i+ 'n, # +*'i'n# s'** 4 n#i#*, #! r+!r #

''r,, '!"n# $r! # !nr !r ,rir !$ # i+*.

8. T +*'i'n# s!"# ri !$ # !r,r ,'#, 07.11.2010 'n,)

's n!#, '4!) 4 # i"n, !r,r #'# ri '*i+'#i!n 's 4n

'**!,. i* '**!in # ri '*i+'#i!n) # Diisi!n Bn+ *, 's

"n,r

I# 's '*r', 4n n!#i+, #'# # #i#i!nr 's',i##,* ' s'r ,rir !$ # i+*. I# ' 4 #r" #'# 's n!# ,riin # i+* '# # r*'n# !in# !$ #i

4"# 's ,ir+#, #! ! #! # !rsi# 4 is *!r 's' s'r ,rir in # i+*. Tr$!r) 4 n! s#r#+ !$i'in'#i!n) i# +'n 4 s'i, #'# # #i#i!nr 's n!##r'**in in # i+* in # +!"rs !$ is *!n# 'n,'s ,ir+#, 4 is *!r. S+#i!n 1?&(1%(4%(i% #'si#in i#s $!*, 'n *i'4i*i# i+ ' 4 in+"rr, 4 #ins"rr in rs+# !$ # ,'# !r 4!,i* in/"r #! 'n rs!n.Tr$!r) # 'r"n# !$ # ins"r'n+ +!'n #'# n!!!,s r 4in +'rri, in # i+* '# # #i !$'++i,n# 'n, #r$!r) # #i#i!nr 's !n* ' r'#"i#!"s'ssnr +'nn!# 4 +!"n#n'n+, '# '**. En !#ris)

# $irs# r!is! #! S+#i!n1?&(1% i** +'s# ' *i'4i*i# !n #ins"rr #! in,ni$ # !nr in rs+# !$ # in/"rs"s#'in, 4 # *! !$ # ins"r, 'risin !"# !$ 'n,in # +!"rs !$ is *!n#.G

7. I# is 'r!ri'# #!

8/13/2019 01425

5/18Page 5

(ii% ''ins# # ,'# !$ !r 4!,i* in/"r #! 'n 'ssnr !$ '"4*i+ sri+ i+* +'"s, 4 !r 'risin !"# !$ # "s !$# i+* in ' "4*i+ *'+

Pr!i,, #'# ' !*i+ s'** n!# 4 r

8/13/2019 01425

6/18Page 6

,i$$rn# $!rs) 'r#i+"*'rs 'n, '##rs ' 4 rs+ri4, in,i$$rn# +'ss.

(?% r ' +!r n!# iss", 4 # ins"rr "n,r #r!isi!ns !$ #is C'#r !r # r"*s ', #r"n,r is

n!# $!**!, 4 ' !*i+ !$ ins"r'n+ i#in # rs+ri4,#i) # ins"rr s'**) i#in sn ,'s !$ # ir !$ #ri!, !$ # '*i,i# !$ # +!r n!#) n!#i$ # $'+# #! #ris#rin '"#!ri# in !s r+!r,s # i+* #! i+# +!r n!# r*'#s 's 4n ris#r, !r #! s"+ !#r'"#!ri# 's # S#'# K!rnn# ' rs+ri4.

(5% N!#i#s#'n,in 'n#in +!n#'in, in 'n *' $!r ##i 4in in $!r+) 'n ins"rr iss"in ' !*i+ !$ ins"r'n+"n,r #is s+#i!n s'** 4 *i'4* #! in,ni$ # rs!n !r+*'sss !$ rs!ns s+i$i, in # !*i+ in rs+# !$ 'n*i'4i*i# i+ # !*i+ "r!r#s #! +!r in # +'s !$ #'#rs!n !r #!s +*'sss !$ rs!ns.G

10. B # M!#!r Vi+*s (An,n#% A+#) 177? ($!r s!r#) =177?

An,n# A+#>%) S+#i!n 1?& +' #! 4 'n,,. T rssi!n

in+*",in !nr !$ # !!,s !r is '"#!ris, rrsn#'#i +'rri, in #

i+*G 's ',,, in S+#i!n 1?&. T 'n,, S+#i!n 1?& 's 4n

+!nsi,r, 4 #is C!"r# in 'ri!"s ,+isi!ns) s! !$ i+ in#n, #!

r$r ' *i##* *'#r.

11. In New India Assurance Compan. #atpal #in$h and others%&

#is C!"r# i# r$rn+ #! # r!isi!ns in # M!#!r Vi+*s A+#) 1737

'n, # r!isi!ns in 1788 A+#) 'r#i+"*'r* S+#i!n 1?&) *, #'# "n,r

# 1788 A+# 'n ins"r'n+ !*i+ +!rin #ir, 'r# ris 's n!# r

8/13/2019 01425

7/18Page 7

'n '++i,n# i+ !++"rr, !r !"*, !++"r '$#r # 1788 A+# +' in#!

$!r+.

12. T +!rr+#nss !$ # /",n# in #atpal #in$h% 's ,!"4#,)

in#r '*i') in Asha Rani1 . I# 's $*# #'# #atpal #in$h% n,, r:*!!

ins!$'r 's +'ss +!r, "n,r # 1788 A+# ri!r #! i#s 'n,n# in

177? r +!n+rn,. A #r:J", Bn+ inAsha Rani1 n!#i+, S+#i!n

1?& !$ # 1788 A+# ri!r #! i#s 'n,n# in 177? 'n, '$#r i#s

'n,n# in 177? 'n, *, in 'r'r' 7 !$ # R!r# (Ps. 231:232%

's $!**!s

In #atpal case '(2)))* 1 #CC 2%+,# C!"r# 'ss", #'## r!isi!ns !$ S+#i!n 75(1% !$ # M!#!r Vi+*s A+#)1737 'r i,n#i+'* i# S+#i!n 1?&(1% !$ # M!#!r Vi+*s

A+#) 1788) 's i# s#!!, ri!r #! i#s 'n,n#. B"# ' +'r$"*s+r"#in !$ # r!isi!ns !"*, ' i# +*'r #'# ri!r #!# 'n,n# !$ 177? i# 's n!# n+ss'r $!r # ins"rr#! ins"r ''ins# # !nr !$ # !!,s !r is '"#!ris,rrsn#'#i 4in +'rri, in ' !!,s i+*. On 'nrr!n!"s irssi!n #is C!"r# +' #! # +!n+*"si!n #'## ins"rr !"*, 4 *i'4* #! ' +!ns'#i!n in rs+#!$ # ,'# !r 4!,i* in/"r +'"s, #! i#r # !nr !$# !!,s !r is '"#!ris, rrsn#'#i n 4in+'rri, in ' !!,s i+* # '++i,n# !++"rr,. I$ #M!#!r Vi+*s An,n# A+# !$ 177? is 'in,)'r#i+"*'r* S+#i!n ?@) 4 i+ # rssi!n in/"r #!'n rs!nG in # !riin'* A+# s#!!, s"4s#i#"#, 4 #rssi!n in/"r #! 'n rs!n in+*",in !nr !$ #!!,s !r is '"#!ris, rrsn#'#i +'rri, in #i+*G) # +!n+*"si!n is irrsis#i4* #'# ri!r #! #

'$!rs'i, An,n# A+# !$ 177?) n i$ # i,s#in#rr#'#i!n is in #! # rssi!n #! 'n rs!nG i#i** n!# +!r i#r # !nr !$ # !!,s !r is '"#!ris,rrsn#'#i 4in +'rri, in # i+*. T !4/+#s 'n,r's!ns !$ +*'"s ?@ '*s! s#'# #'# i# ss #! 'n,S+#i!n 1?& #! in+*", !nr !$ # !!,s !r is '"#!ris,rrsn#'#i +'rri, in # i+* $!r # "r!ss !$*i'4i*i# "n,r # ins"r'n+ !*i+. I# is n! ,!"4# #r" #'#s!#is # *is*'#"r 'n,s # *' 4 ' !$'*i$i+'#i!n 'n, +*'ri$i+'#i!n !$ 'n inrn# !si#i!n i+

7

8/13/2019 01425

8/18Page 8

is #r in # s#'#"#) 4"# ' *'in 'nin 4in in #! #!r,s "s, in # s#'#"#) 's i# s#!!, ri!r #! i#s 'n,n#!$ 177?) 'n, 's i# s#'n,s s"4s

8/13/2019 01425

9/18Page 9

"4*i+ *'+) r's s"4:+*'"s (ii% #r!$ ,'*s i#*i'4i*i# i+ ' 4 in+"rr, 4 # !nr !$ ' i+*''ins# # ,'# !$ !r 4!,i* in/"r #! 'n 'ssnr !$ '"4*i+ sri+ i+* +'"s, 4 !r 'risin !"# !$ # "s !$# i+* in ' "4*i+ *'+.

28. An !nr !$ ' 'ssnr:+'rrin i+* "s# 'ri" $!r +!rin # riss !$ # 'ssnrs. I$ '*i'4i*i# !#r #'n # *ii#, *i'4i*i# r!i,, $!r "n,r #

A+# is #! 4 n'n+, "n,r 'n ins"r'n+ !*i+) ',,i#i!n'*ri" is r

8/13/2019 01425

10/18

8/13/2019 01425

11/18Page 11

T *'rn, +!"ns* $!r # Ins"r'n+ C!'ns"4i##, #'# # iss" in!*, in #s ''*s iss

8/13/2019 01425

12/18Page 12

+*'ss. F!**!in # s') # ''* is ,isiss,.N! !r,r 's #! +!s#s.G

17. I# is n! ** s##*, #'# # !nr !$ # !!,s 'ns!n* # rs!n ! #r'*s in # +'4in !$ # i+*.

20. In #is +'s) # Hi C!"r# ', r!+,, !n # 4'sis#'# # r r'#"i#!"s 'ssnrs. T ',i##, *' !$# rs!n,n#s #s*s 's #'# # ,+'s, ',4!'r,, # *!rr 'n, 'i, 'n '!"n# !$ Rs 20 's #r'ns!r#+'rs. I# 's n!# 4n r!, #'# # ,+'s, 's#r'**in in # *!rr '*!n i# # ,rir !r # +*'nr 's# !nr !$ # !!,s. Tr'**in i# # !!,s i#s*$ ,!sn!# n#i#* 'n!n #! r!#+#i!n "n,r S+#i!n 1?& !$ #M!#!r Vi+*s A+#.

21. F!r # r's!ns '$!rn#i!n,) #is ''* is '**!,.G

1@. In # rsn# +'s) S+#i!n 1?& 's !riin'** is#, in 1788

A+# is '*i+'4* 'n,) '++!r,in*) # /",n# !$ #is C!"r# inAsha Rani1

is $"** '##r'+#,. T Hi C!"r# 's +*'r* in rr!r in riin i#s

/",n# 'n, !r,r ,*ir, !n 07.11.2010 in ri #i#i!n $i*, 4 #

+*'i'n# 4 '*in S+#i!n 1?&(1%(4%(i%. T Hi C!"r# +!i##, r'

rr!r in !*,in #'# S+#i!n 1?&(1%(4%(i% #'s i#in i#s $!*, 'n *i'4i*i#

i+ ' 4 in+"rr, 4 # ins"rr in rs+# !$ # ,'# !r 4!,i*

in/"r #! 'n rs!n. T Hi C!"r# '*s! rr, in !*,in #'# # +*'i'n#

's #r'**in in # i+* in # +!"rs !$ is *!n# sin+ 's

' s'r ,rir in # i+* '*#!" 's n!# ,riin # i+* '# #

r*'n# #i 4"# 's ,ir+#, #! ! #! # !rsi# 4 is *!r.

T Hi C!"r# rr!n!"s* 'ss", #'# # +*'i'n# ,i, in # +!"rs

!$ *!n# 'n, !r*!!, # $'+# #'# # +*'i'n# 's n!# in 'n

'nnr n', !n # i+* #'# # i# 'n '++i,n# 4"# 's

*!, 's ' ,rir in 'n!#r i+* !n, 4 M9s. P.L. C!ns#r"+#i!n

1

8/13/2019 01425

13/18Page 13

C!'n. T ins"r, (!nr !$ # i+*% !# ins"r'n+ +!r in

rs+# !$ # s"4/+# !!,s i+* $!r ,rir 'n, +*'nr !n* 'n, n!# $!r

'n !#r *!. Tr is n! ins"r'n+ +!r $!r # s'r ,rir in #

!*i+. As ' '##r !$ *') # +*'i'n# ,i, n!# +'s #! 4 ' r'#"i#!"s

'ssnr #!" +*'i, #'# 's ' s'r ,rir. T ins"r, ',

'i, ri" $!r !n ,rir 'n, !n +*'nr 'n,) #r$!r) s+!n, ,rir

!r $!r #'# "r!s =s'r ,rir> 's n!# +!r, "n,r # !*i+.

1&. T Hi C!"r# is+!ns#r", # r!is! $!**!in s"4:s+#i!n

(1% !$ S+#i!n 1?& !$ # 1788 A+#. '# is +!n#*'#, 4 r!is! #!

S+#i!n 1?& (1% is #'# # !*i+ s'** n!# 4 r

8/13/2019 01425

14/18Page 14

+!'n #! $irs# s'#is$ # ''r,, '!"n# in $'!"r !$ # +*'i'n# 'n,

r+!r # s' $r! # !nr !$ # i+* (rs!n,n# n!. 2 rin%.

20. In National Insurance Co. Ltd. . Balit /aur and others6& #is

C!"r# 's +!n$r!n#, i# ' sii*'r si#"'#i!n. A #r:J", Bn+ !$ #is

C!"r# in 'r'r' 21 !$ # R!r# (P. 8% *, 's "n,r

21. T "s!# !$ # '$!rn#i!n, ,is+"ssi!ns is #'#ins#', 'n, in *'+ !$ # ins"rr # !nr !$ # i+*s'** 4 *i'4* #! s'#is$ # ,+r. T

8/13/2019 01425

15/18Page 15

13. T rsi,"'*

8/13/2019 01425

16/18Page 16

i+*. In # $'+#s 'n, +ir+"s#'n+s !$ # +'s)!r) #r s'** 4 n! !r,r 's #! +!s#s.G

23. 'r in$!r, #'# 4 'n !r,r ,'#, 17.01.200& in

N'#i!n'* Ins"r'n+ C!. . R!s'n L'* 'n, An!#r SLP (C% N!.

5@779200@ in *i# !$ # 'r"n# r'is, 4$!r ' #!:J", Bn+ #'#

# ,ir+#i!n !"# n!# #! 4 iss", #! # ins"r'n+ +!'n #! ,is+'r

# *i'4i*i# "n,r # ''r, $irs# 'n, #n r+!r # s' $r! #

!nr) # '##r 's 4n r$rr, #! # *'rr Bn+ 4 # $!**!in

!r,r

H'in r'r, #! # s"4issi!ns "r, 4$!r "s) 'r!$ # i #'# #is #i#i!n ' 4 *'+, $!r +!nsi,r'#i!n4$!r ' *'rr Bn+. n!#i+ #'# in s! !$ #,+isi!ns s"+ ' ,ir+#i!n 's ', in +'ss r #+!ns'#i!n ', '*r', 4n 'i, 4 # ins"rr) 4"##r 'r !4sr'#i!ns #rin i+ s"!r# # i #'#s"+ ' ,ir+#i!n +'n 4 ', in '** +'ss r # !nr's ins"r, is i+* ''ins# #ir, 'r# riss. In B'*/i#6'"r>s +'s (s"r'% i+ is ' /",n# rn,r, 4 #rH!n>4* J",s) s"+ ' ,ir+#i!n 's ', in # s+i'*+ir+"s#'n+s n!#i+, 4 # C!"r# in 'r'r' 21 !$ #r!r#. Tr 'r !4sr'#i!ns in Orin#'* Ins"r'n+ C!.L#,. Vs. R'n/i# S'ii' 'n, Ors. (2002% 7 SCC 370 i+' s"!r# # +!n#n#i!n !$ # #i#i!nrs 4$!r "s.G

2?. In N'#i!n'* Ins"r'n+ C!'n L#,. . P'r'#nni An!#r

SLP(C%-.CC N!. 10773 !$ 2007) # $!**!in #!

8/13/2019 01425

17/18Page 17

(2% C'n s"+ ' ,ir+#i!n 4 in "n,r Ar#i+* 1?2 !$ #C!ns#i#"#i!n) 'n, '# is # s+! !$ Ar#i+* 1?2 D!s

Ar#i+* 1?2 ri# # C!"r# #! +r'# ' *i'4i*i# r #ris n!nG

25. T n,n+ !$ +!nsi,r'#i!n !$ # '4!

8/13/2019 01425

18/18

2@. A'* is '**!, 'n, ,is!s, !$ 's '4! i# n! !r,r 's

#! +!s#s.

--------.J. (R.M. L!,'%

..--------.J.(Ani* R. D'%

NE DELHI.

JANUARQ 3) 2013.