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New India Assurance Company v. C. M. Jaya And Others

New India Assurance Company
v.
C. M. Jaya And Others

(Supreme Court Of India)

Civil Appeal No. 4566-4567 Of 1996 | 23-07-1998


1. The question involved in these appeals is whether in a case of insurance policy not taking any higher liability by accepting a higher premium, in case of payment of compensation to a third party, the insurer would be liable to the extent limited under Section 95(2) or the insurer would be liable to pay the entire amount and he may ultimately recover from the insured. On this question, there appears to be some apparent conflict in the two three-Judge Bench decisions of this Court - (1) New India Assurance Co. Ltd. v. Shanti Bai and (2) Amrit Lal Sood v. Kaushalya Devi Thapar

2. In the latter decision, unfortunately the decision in New India Assurance case has not been noticed though reference has been made to the decision of this Court in National Insurance Co. Ltd. v. Jugal Kishore which was relied upon in the earlier three-Judge Bench judgment. In view of the apparent conflict in these two three-Judge Bench decisions, we think it appropriate that the records of this case may be placed before my Lord, the Chief Justice of India to constitute a larger Bench for resolving the conflict. We accordingly so direct. The record may now be placed before the Honble Chief Justice of India.

Advocates List

For

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE JUSTICE A. P. MISHRA

HON'BLE JUSTICE G. B. PATTANAIK

Eq Citation

(1999) 2 SCC 47

LQ/SC/1998/667

HeadNote

Insurance — Liability of insurer — Insurance policy not taking any higher liability by accepting a higher premium, in case of payment of compensation to a third party — Whether insurer would be liable to the extent limited under S. 95(2) or the insurer would be liable to pay the entire amount and he may ultimately recover from the insured — Some apparent conflict in two three-Judge Bench decisions of Supreme Court — Larger Bench to be constituted