New India Assurance Company Ltd v. Rakesh Sehgal and Anr

o o 2023:PHHC:094432o o o o ooooooINoTHEoHIGHoCOURToOFoPUNJABoANDoHARYANAo AToCHANDIGARHoo 205o o o o o o o o oooooo o o o o o o o o o oCWP-4946-2017o o o o o o ooooooooooooooooooooooDateoofodecision:o20.07.2023o o NEWoINDIAoASSURANCEoCOMPANYoLTD.o o o ......Petitioneroo o o o o o o VERSUSo o RAKESHoSEHGALoANDoANOTHERoo o o oooooo.......Respondentsoo o CORAMo:oHON'BLEoMR.oJUSTICEoVINODoS.oBHARDWAJo o o o o o *****o o Present:o-oo Mr.oPauloS.oSaini,oAdvocateoo o o forotheopetitioner.oo o Mr.oDevanshoKhanna,oAdvocateoforoo Mr.oVaibhavoNarang,oAdvocateoo forotheorespondents.oo o o o o *****oo VINODoS.oBHARDWAJ,oJ.o(Oral)o o o o Challengeo ino theo presento petitiono iso too theo awardo datedoooooooooooooooooooooo

13.o12.2016o(AnnexureoP-12)oopassedobyotheoPermanentoLokoAdalato(Publico UtilityoServices),oS.A.S.oNagaroMohali.o

2.o o Brieflyosummarized,otheofactsoofotheopresentocaseoareothatotheo respondent-applicantowasoappointedoasoaoDevelopmentoOfficerowithotheoNewo IndiaoAssuranceoCompanyoono20.04.1978.oItoisoaverredothatotheopetitionero wasogivenoaotargetotooachieveocertainobenefitsoinoadditionotootheosalary.oAocaro facilityowasoprovidedotootheorespondent-applicantoforoachievingotheotargets,oino theoyearo1984,ounderoaoConveyanceoSchemeoprevailingoatothatotime.ooTheosaido carowasoregisteredoinotheonameoofotheoemployeeoono80:20oratioobasisotoomeano thatotheocaroloanowasogivenoinotheoemployees'onameoando20%oofotheocaroloano CWP-4946-2017o o -2-ooooooooooooooooooooo2023:PHHC:094432o o waso toobeo borneobyo theo employeeo ando80%o waso allowedo aso depreciationo allowance.oAfteroexpiryoofoaoperiodoofo10oyears,otheocarowasotoobeogivenotoo theoemployee.oHence,otheosaidocarobecameoabsoluteopropertyoofotheoapplicant-respondentoandowasosoldobyohimoinotheoyearo1994.oo

3.o o ThatoonobeingopromotedoasoaoAssistantoAdministratoroOfficero (Development),otheopetitionerowasoallottedoaosecondoMarutio800ocarounderotheo conveyanceoschemeoforoaoperiodoofo08oyears.oUnderotheosaidoschemeo100%o depreciationo waso too beo borneo byo theo Insuranceo Company.o o Aso pero theo prevailingoconveyanceoscheme,otheopetitionerowasoentitledotoohisothirdocaro afteroaoexpiryoofo08oyearsofromotheodateoofoallotmentoofotheosecondocar.ooInotheo monthoofoMay,o2003,otheoapplicant-respondentowasogivenoaocaroloanoofoRs.o 2,82,260/-otoo purchaseo theo thirdo car,o toobeo registeredoinotheonameo ofo theo Insuranceocompanyobutoforoexclusiveouseoofotheorespondent-applicant.oNoo deductionowasoallowedounderotheothenoprevailingoconveyanceoscheme,ofromo theosalaryooforespondent-applicant,oandotheosameowasotoobeoborneobyotheo InsuranceoCompanyoitself.ooTheoaboveosaidocarobearingoregistrationoNo.oCH-03L-1481o waso howevero stoleno whileo ino possessiono ofo theo respondent-applicant.oAnoFIRoquaotheosameowasoregistered.oAnountraceoreportowasoalsoo issuedotootheopetitioneroAssuranceoCompanyoitself.oo

4.o o Aso pero theo erstwhileo conveyanceo scheme,o theo writteno downo valueoaftero08oyearsocameotooRs.o48342/-.oTheoInsuranceoCompanyocalledo uponotheopetitionerotoodepositotheowrittenodownovalueoofoRs.o48342/-owhicho wasodulyocompliedobyotheoapplicant-respondentoono16.06.2011.ooSinceotheo entireopaymentoquaotheocarohadobeenoborneobyotheorespondent-applicant,oito thusobecameohisoabsoluteopropertyoandotheorespondent-applicantoclaimedotoo beoentitledoforotheoInsuranceoClaimoamountounderotheosaidoscheme.oo CWP-4946-2017o o -3-ooooooooooooooooooooo2023:PHHC:094432o o

5.o o oThato ono completiono ofo theo formalitieso ofo theo Insuranceo ando obtainingoanountraceoreport,otheoUnitedoIndiaoInsuranceoCompanyo(Insuranceo ofotheovehicle)oissuedoaochequeoofoRs.oo1,49,500/-oasoInsuranceoclaimoinotheo nameo ofo petitioner-Insuranceocompany.o However,oduringo theo audito ofotheo accountsoofotheoInsuranceocompany,oitowasoheldothatotheorespondent-applicanto wasonotoeligibleoandothatoanoamountoofoRs.o1,01,158/-ohadobeenowronglyo creditedobyothemoinotheoaccountoofotheorespondent-applicant.oHence,orecoveryo ofo theo saido claimo waso raised.o Theo respondent-applicanto waso accordinglyo apprisedoaboutotheosame.ooHeosuperannuatedoonoo30.04.2015oowhereuponotheo InsuranceoCompanyoforfeitedoanoamountoofoRs.oo48,342/-owhichowasopaidobyo theorespondent-applicantoasowrittenodownovalueoofotheocarowasoRs.1,01,158/-o againstotheoamountoofoRs.o1,49,500/-oreleasedobyotheopetitioner-Insuranceo Companyo ino favouro ofo theo respondent-applicant.o Aggrievedo thereof,o theo aboveosaidoapplicationounderoSectiono22oo(C)owasofiledobyotheopetitioneroforo seekingoaorecoveryoaosumoofoRs.oo1,01,o158/-owithointeresto@o18%operoannumo withoeffectofromo01.05.2015oalongwithoaocost.oo

6.o o Writteno statemento ono behalfo ofo theo petitionero o Insuranceo Companyo waso alsoo preferredo beforeo theo Permanento Loko Adalato (Publico UtilityoServices),oS.A.S.oNagaroMohaliowhereinoitowasoaverredothatotheoaboveo saidobearingoregistrationoNo.oCH-03L-1481owasoprovidedobyotheoInsuranceo CompanyounderotheoConveyanceoScheme,o2002oono05.05.2003.oTheocostoofo theocarowasoRs.3,59,388/-oasoperotheosaleoinvoiceoandowasoregisteredoinotheo nameoofotheocompanyoitself.oTheocarowasoboughtobyotheocompanyoforouseobyo theoeligibleoofficeroofotheocompanyoforoaoperiodoofo08oyears.oTheoofficersoareo governedobyotheotermsoandoconditionsospecifiedoinotheoConveyanceoScheme.o Theosaidocarowasotoobeotransferredoafterocompletionoofo08oyearsoinotheonameo CWP-4946-2017o o -4-ooooooooooooooooooooo2023:PHHC:094432o o ofo officerso concernedo byo recoveringo theo writteno downo value.o Aftero completionoofoaoperiodoofo08oyears,oNOCowasotoobeoissuedowithorespectotootheoo vehicleoforotransferoofoitsoregistrationoinotheonameoofotheoconcernedoofficer.oo Ino theo presento case,o theo periodo ofo 08o yearso ofo agreemento hado noto beeno completedo aso theo respondent-applicanto hado beeno sanctionedo loano foro car/providedocaroono05.05.2003oandotheodateoofotheftoofocarowaso01.04.2011.o Hence,otheoloss/theftoofotheocarofellounderoaototalolossocategoryowhichoowaso governedobyotheoprematureochange/transferoofotheovehicleowithinoaoperiodoofo 08oyearsofromotheodateoofoitsopurchase.oClauseo14oofotheoConveyanceoSchemeo providedothatoInsuranceoclaimoamount/saleoproceedsoofotheovehicleooshallobeo utilizedoasoundero:-o o "(i)oo Theofirstochargeoshallobeotheowrittenodownovalueoofo o o theoovehicleoasoonotheodateoofodisposal.o

(ii)o Theoshortfall,oifoany,oshallobeorecoveredofromotheo o Officeroconcerned.oo

(iii)o Excess,oifoany,oshallobeoretainedobyotheocompany."o

7.o o Hence,o theo writteno downo valueo ofo theo caro workedo outo too Rs.48,342/-owhichowasodepositedobyotheorespondent-applicantoono16.06.2011.oo TheocarobeingoinsuredowithotheoUnitedoIndianoInsuranceoCo.oLtd.o,otheoclaimo amount/saleoproceedsoofoRs.o1,49,500/-oowereoreleasedoinofavouroofotheoNewo IndiaoAssuranceoCo.oLtd.oono24.06.2011obeingoitsoregisteredooffice.oSince,oao sumo ofo Rs.o o 48,342/-o hado alreadyo beeno recoveredo fromo theo respondent-applicanto byo theo petitioner-Insuranceo company,o theo excesso amounto ofo Rs.1,01,158/-owasotoobeoretainedobyotheoopetitioner-company,ohowever,otheo sameowasoinadvertentlyocreditedotootheoBankoAccountoofotheorespondent-applicantoono30.06.2011.ooConsequently,otheoentireoInsuranceoclaimoofoRs.o 1,49,o500/-owasotransferredoinotheonameooforespondent-applicantoforowhichoheo CWP-4946-2017o o -5-ooooooooooooooooooooo2023:PHHC:094432o o waso noto eligibleo aso pero conveyanceo scheme.o Theo entitlemento ofo theo respondent-applicantowasoonlyotootheotuneoofoRs.o48,342/-oandoheooughtotoo haveoreturnedotheobalanceoamount.oTheodeductionowasothusocorrectlyodoneo fromotheoretiraloduesoofotheorespondent.oo

8.o o Effortso foro amicableo resolutiono ofo theo disputeo ino termso ofo Sectiono22o(C)o(4)otoo22o(C)o(7)owereomadeobyotheoPermanentoLokoAdalato (PublicoUtilityoServices),oS.A.S.oNagaroMohalioandotermsoofosettlementowereo alsooframed.oHowever,otheosettlementocouldonotobeoarrivedoat.ooConsequently,o adjudicationoinotermsoofoSectiono22o(C)o(8)ooofotheoLegaloServicesoAuthoritieso Act,o 1987o waso undertakeno byo theo Permanento Loko Adalato (Publico Utilityo Services),oS.A.S.oNagaroMohali.o

9.o o Upono considerationo ofo theo respectiveo contentions,o theo Permanento Loko Adalato (Publico Utilityo Services),o S.A.S.o Nagaro Mohalio allowedotheosaidoapplicationoandodirectedotheopetitioner-InsuranceoCompanyo too refundo theo sumo ofo Rs.1,01,158/-o deductedo fromo retiralo benefitso too theo applicantoalongwithointeresto@o9%operoannum.ooLitigationoexpensesowereotoo theotuneoofoRs.o10,000/-owasoalsooawarded.oAggrievedothereof,otheopresento petitionohasobeenofiled.oo

10.o o Learnedocounseloappearingoonobehalfoofotheopetitioner-Insuranceo CompanyosubmitsothatotheoPermanentoLokoAdalato(PublicoUtilityoServices),o S.A.S.oNagaroMohaliowasoconstitutedotoodecideodisputesopertainingotootheo PublicoUtilityoServicesothatohaveobeenodefinedounderoSectiono22o(A)o(b)oofo theoLegaloServicesoAuthorities,o1987.oHeosubmitsothatoanoInsuranceoserviceoiso theoonlyodisputeowhichocanobeoadjudicatedobyotheotheoPermanentoLokoAdalato (Publico Utilityo Services),o S.A.S.o Nagaro Mohali.o Ito iso contendedo byo theo Counseloappearingoonobehalfoofotheopetitionerothatotheoclaimoinotheopresento CWP-4946-2017o o -6-ooooooooooooooooooooo2023:PHHC:094432o o caseowasofororecoveryoofotheoamountodeductedofromotheoretiraloduesoofotheo petitioner.oTheosameobeingoinotheonatureooforeturnoofotheorecoveredoamount,o theoPermanentoLokoAdalato(PublicoUtilityoServices),oS.A.S.oNagaroMohalio hado noo jurisdictiono too decideo theo same.o Merelyo becauseo theo respondent-applicanto waso employedo witho theo petitionero Insuranceo Company,o disputeo withorespectotootheovalidityoofodeductionofromoretiraloduesobyotheoemployer,o theo sameo couldo noto beo adjudicatedo upono byo theo Permanento Loko Adalato (PublicoUtilityoServices),oS.A.S.oNagaroMohali.ooTheopetitionerowasorequiredo tootakeorecourseotootheoappropriateoremedyoavailableotoohimofororestorationoofo hisoserviceodone.oExerciseoofotheojurisdictionowasoclearlyoanoactoofooverreacho andowouldovitiateotheofinaloaward.oo

11.o o Learnedo counselo appearingo ono behalfo ofo theo respondent,o however,ocontrovertsoandosubmitsothatotheodisputeopertainedotooanoamounto whicho waso ano Insuranceo claimo releasedo byo theo Unitedo Indiao Insuranceo Companyo witho respecto too theo Caro thato waso stoleno ando itso disbursement.o Hence,o theo sameo waso rightlyo entertainedo byo theo Permanento Loko Adalato (PublicoUtilityoServices),oS.A.S.oNagaroMohali.oHeofurtherosubmitsothatotheo aboveo saido pleao ofo jurisdictiono hado noto beeno raisedo byo theo petitioner-InsuranceoCompanyoinotheoproceedingsobeforeotheotheoPermanentoLokoAdalato (PublicoUtilityoServices),oS.A.S.oNagaroMohalioandocannotobeopermittedotoo raiseo theo sameo foro theo firsto timeo beforeo theo Higho Court.o Heo prayedo foro dismissaloofotheowritopetition.ooo

12.o o Controvertingotheoabove,olearnedocounseloforotheopetitionerohaso contendedothatotheopleaoofomaintainabilityoisoaopleaoofolawoandohenceocanobeo raisedoatoanyostage.oNooestoppelocanobeoraisedoagainstotheopetitioneroforonoto havingoraisedotheolegaloargument.oHeofurtherocontendsothatotheojustificationo CWP-4946-2017o o -7-ooooooooooooooooooooo2023:PHHC:094432o o forotheoclaimedomayobeoinorelationotoosomeoinsurance,ohowever,otheoreliefoforo respondentowasomoreofororecoveryoofotheoamountothatohadobeenodeducted.o Hence,oitocanonotobeosaidotoobeoaodisputeoquaoaodeficiencyoinotheoInsuranceo serviceoandorelatesotootheocontractoofotheoemployment.oHeosubmitsothatotheo saido pleao hado ino facto beeno raisedo ino theo writteno statemento beforeo theo Permanento Loko Adalat,o however,o theo sameo waso noto advertedo too byo theo PermanentoLokoAdalato(PublicoUtilityoServices),oS.A.S.oNagaroMohalioinoitso finaloaward.oo

13.oo o Io haveo heardo learnedo counselo appearingo ono behalfo ofo theo respectiveopartiesoandohaveogoneothroughotheodocumentsoappendedoalongwitho presentopetition.oo

14.oo o Insofaro aso theo submissiono ofo theo petitionero thato theo pleao ofo maintainabilityocannotobeoarguedoatothisostageoisoconcerned,oIofailotoofindo myselfo ino agreemento witho theo counselo foro theo respondent.o Theo pleao ofo maintainabilityoonotheogroundoofojurisdictionotooentertainotheodisputeoisoao questionoofolawoandocanobeoraisedoevenoatothisostage.oEvenootherwise,otheo aboveopleaohadobeenoraisedoonobehalfoofotheopetitioneroevenoinoitsowritteno statementofiledobeforeotheoPermanentoLokoAdalato(PublicoUtilityoServices),o S.A.S.oNagaroMohali.oHence,otheoaforesaidoobjectionoisohenceodeclined.o

15.oo o Now,o advertingo too theo natureo ofo theo disputeo thato hado beeno broughtobeforeotheoPermanentoLokoAdalato(PublicoUtilityoServices),oS.A.S.o NagaroMohali,oitowouldobeonecessaryotooreferotootheoprayeromadeobyotheo respondentoinohisoapplicationounderoSectiono22o(C)obeforeotheotheoPermanento LokoAdalato(PublicoUtilityoServices),oS.A.S.oNagaroMohali.oTheorelevantoparto ofotheoHeadoNoteoasowelloasotheoPrayeroClauseoofotheoapplicationobeforeotheo CWP-4946-2017o o -8-ooooooooooooooooooooo2023:PHHC:094432o o Permanento Loko Adalato (Publico Utilityo Services),o S.A.S.o Nagaro Mohalio iso extractedoasounder:o o o o "HEADoNOTEo o Petitiono FORo RECOVERYo OFo Rs.o 1,01,158/-o witho interesto @18%o compoundo interesto w.e.fo 01-05-2015o undero sectionso 22(C),o 22(D),o 22o (E)o OFo LEGALo SERVICESo AUTHORITIESoACT,o1987.o o PRAYERo o Ito iso thereforeo respectfullyo prayedo thato theo respondento mayo kindlyo beo directedo too payo ao sumo ofo Rs.o 1,01,158/-o witho interesto @18%o p.a.o w.e.fo 01/05/15o witho Rs.o 11,000/-o aso litigationoexpenses.o o Anyootheroreliefowhichothisocourtodeedsofitomayoalsoobeo grantedo ino favouro ofo theo applicanto companyo againsto respondents."oo

16.o o ItowouldoalsoobeonecessaryotooadvertotootheojurisdictionoofoPLAo

(PUS)o aso pero theo Legalo Serviceso Authoritieso Act,o 1987o ando theo definedo servicesonotified,othatowouldofallowithinotheocompetenceoofotheoPermanento LokoAdalat.oTheosameoisoreproducedoasounder:o Sectiono22AoinoTheoLegaloServicesoAuthoritiesoAct,o1987o 22A.oDefinitions.—InothisoChapteroandoforotheopurposeso ofo sectiono 22o ando 23,o unlesso theo contexto otherwiseo requires,—o

(a)o"Permanento Loko Adalat"o meanso ao Permanento Loko Adalatoestablishedounderosub-sectiono(1)oofosectiono22B.o

(b)o"publicoutilityoservice"omeansoany—o

(i)otransportoserviceoforotheocarriageoofopassengerso orogoodsobyoair,oroadoorowater;ooroVISHAL SHARMA CWP-4946-2017o o -9-ooooooooooooooooooooo2023:PHHC:094432o o

(ii)opostal,otelegraphoorotelephoneoservice;ooro

(iii)osupplyoofopower,olightoorowaterotootheopublicobyo anyoestablishment;ooro

(iv)osystemoofopublicoconservancyoorosanitation;ooro

(v)oserviceoinohospitaloorodispensary;ooro

(vi)oinsuranceo service,o ando includeso anyo serviceo whicho theo Centralo Governmento oro theo Stateo Government,oasotheocaseomayobe,omay,oinotheopublico interest,o byo notification,o declareo too beo ao publico utilityoserviceoforotheopurposesoofothisoChapter.o o

17.o o Ito iso evidento fromo ao perusalo ofo theo aboveo thato serviceo ofo InsuranceoisoamenableotootheojurisdictionoofoPermanentoLokoAdalato(Publico UtilityoServices),oS.A.S.oNagaroMohali.o

18.oo o oAoperusaloofotheoaforesaidoclearlyoshowsothatotheogrievanceoofo theorespondent-applicantowasowithorespectotootheodeductionothatohadobeeno madeobyotheopetitioner-InsuranceoCompanyofromotheoretiraloduesopayableotoo theopetitioner.oWhileotheoclaimoofotheopetitionerowasothatotheodeductionoofoRs.o 1,01,158/-o madeo byo theo petitionero waso inappropriate,o theo claimo ofo theo petitioneroInsuranceoCompanyowasotootheoeffectothatosinceotheopetitionerowaso onlyoentitledotooRs.o48,342/-oasotheowrittenodownovalueoofotheovehicle,owhicho wasodepositedobyohim,ohence,otheodifferentialoamountoofoRs.1,01,158/-owaso theo entitlemento ofo theo petitioner-Insuranceo Companyo itselfo aso pero theo Conveyanceo Scheme,o 2002.o Theo disputeo quao ano Insuranceo serviceo wouldo haveocomeointooplayowhereoaoserviceoofoInsuranceohadobeenoavailedoandothereo wouldohaveobeenoaodefaultoinopaymentothereof.oTheovehicleoinothisocaseowaso insuredowithotheoUnitedoIndiaoInsuranceoCompanyoandotheovalueoinotermsoofo theoInsuranceopolicyohadobeenodulyoremittedotootheoregisteredoowner.oTheo serviceoofoInsuranceowasoinorelationotooaocontractothatowasoexecutedobetweeno CWP-4946-2017o o -10-ooooooooooooooooooooo2023:PHHC:094432o o theo petitionero beingo theo registeredo ownero ando theo Unitedo Indiao Insuranceo Company.o o Theo respondent-applicanto waso thuso noto ao beneficiaryo oro consumer/applicanto soo faro aso theo serviceo ofo insuranceo iso concerned.o Theo deductionomadeobyotheopetitioneroisoclaimedotoobeoinotermsoofotheoschemeothato wasofloatedobyotheopetitioneroInsuranceocompanyoasoanoemployeroandotheo benefito too beo giveno too itso employees.o Hence,o theo allowances/benefitso contemplatedo undero theo aforesaido conveyanceo schemeo ofo 2002o waso ao relationshipobetweenotheoemployeroandoemployeeoasoaopartoofocontractoofo employmento &o cannoto beo termedo aso ao serviceo ofo Insuranceo amenableo too jurisdictionoofoPermanentoLokoAdalat.oo

19.o o Consideringotheonatureoofotheodispute,otheoreliefoclaimedoandotheo interoseorelationshipoofotheoparties,oitodoesonotomakeooutoaocaseoofodeficiencyo ofotheoserviceoinorelationotootheoinsurance.oTheodisputeoisoprimarilyooando substantiallyoaodisputeorelatingotoocontractoofoemploymentointeroseoemployero andoemployeeoandorecoveryoofotheodeductionsomadeobyotheoemployerofromo theoretiraloduesoclaimedotooadmissibleobyotheorespondent-applicant.oo

20.o o Inoviewoofotheoabove,otheoPermanentoLokoAdalato(PublicoUtilityo Services),o S.A.S.o Nagaro Mohalio hado noo jurisdictiono too decideo theo saido dispute.oIofindothatothereowasoanoimproprietyoandoillegalityocommittedobyotheo Permanento Loko Adalato (Publico Utilityo Services),o S.A.S.o Nagaro Mohalio ino adjudicatingotheosaidodisputeowhichowasonotowithinoitsoambitoandoscopeoasopero theopowersoconferredouponoitobyotheoLegaloServicesoAuthoritiesoAct,o1987.o Theoaforesaidoillegalityoamountsotooexerciseoofoaojurisdictionoandoauthorityo whichoisonotobeingoconferredouponoitoandowouldothusovitiateotheoaward.oo

21.o o Inoviewoofotheoabove,oIofindothatotheoexerciseoofojurisdictionobyo theoPermanentoLokoAdalato(PublicoUtilityoServices),oS.A.S.oNagaroMohalioiso CWP-4946-2017o o -11-ooooooooooooooooooooo2023:PHHC:094432o o unsustainable.oConsequently,otheopresentowritopetitionoisoallowed.oTheoawardo datedo13.12.2016opassedobyoPermanentoLokoAdalato(PublicoUtilityoServices),o S.A.S.oNagaroMohalioisosetoaside.oTheorespondent-applicant,ohowever,oisoato libertyo too takeo recourseo too theo appropriateo remedieso availableo too himo ino accordanceowitholawoforoseekingoredressaloofohisogrievance.oNothingostatedo hereinoshouldobeoseenoasoanoexpressionoonomeritsoofotheointeroseoclaimoando entitlementoofotheopartiesotootheodisputeoquaotheolegalityoandovalidityoofotheo deductionsomade.oo o o oo o o o o o ooooo(VINODoS.oBHARDWAJ)oo JULYo20,o2023o o o o o o oooooooJUDGEo VishaloSharmao o o o Whetherospeaking/reasonedo :o Yes/Noo o o o WhetheroReportableo o :o Yes/Noo