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Ordinarily, there shall be no direction to “pay and recover” when Insurance company not liable

Cause Title : Balu Krishna Chavan vs The Reliance General Insurance, Civil Appeal No. Of 2022, Supreme Court Of India

Date of Judgment/Order : 03rd November, 2022

Corum : A.s. Bopanna & Pamidighantam Sri Narasimha, J

Citied: Manuara Khatun & Ors. Vs. Rajesh Kr. Singh & Ors

Background

The question before the Supreme Court was whether the Respondent-Insurance Company should be directed to “pay and recover” in the facts arising in the case.

Judgment

The Supreme Court observed that in Civil Appeal No(s).3047 of 2017 titled as “Manuara Khatun & Ors. Vs. Rajesh Kr. Singh & Ors”, the Supreme Court has concluded that normally, there would be no order to “pay and recover”. However, in the said facts, this Court, to meet the ends of justice, had taken into consideration the fact situation though, the claimant therein, was a ‘gratuitous passenger’ and had kept in view that the benevolent object of the Act and had directed the payment by the Insurance Company and to recover the amount.

Therefore, on the legal aspect, it is clear that in all cases such order of “pay and recover” would not arise when the Insurance Company is not liable but would, in the facts and circumstances, be considered by this Court to meet the ends of justice.

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