Legal Doctrine - The Legal Chamber

This Supreme Court case reaffirms the principle that an insurance policy stands rescinded upon dishonour of the premium cheque and intimation to the concerned parties, absolving the insurer from statutory liability. However, applying the "pay and recover" doctrine, the insurer was directed to pay the awarded compensation to the third-party claimants and was permitted to recover the same from the vehicle owner. Facts Of The Case: On August 22, 2005, Dheeraj Singh died when his motorcycle was hit from behind by a speeding truck (HR 46 A 1020). The deceased, a 36-year-old computer engineer, was found to be earning ₹3,364 per month. His dependents filed a claim before the Motor Accident Claims Tribunal. The appellant, National Insurance Company Ltd., disowned liability by contending that the...

The Supreme Court held that the High Court erred in granting bail without properly considering the absence of "new circumstances" as mandated by the Court's earlier judgment cancelling bail. The impugned order lacked cogent reasoning, relied on irrelevant factors like jail overcrowding, and failed to accord due deference to the Supreme Court's previous decision, warranting its quashing. Facts Of The Case: The case involves an appeal by the informant, Ajwar, against an order of the Allahabad High Court granting bail to the accused, Waseem. Waseem was charged under various sections of the IPC, including Section 302 (murder). His bail was initially granted by the High Court in 2022 but was cancelled by the Supreme Court. A subsequent grant of bail by the High Court was again cancelled by th...

Tag: Legal Doctrine

Supreme Court Decides: Who Pays When a Car Insurance Policy is Cancelled?

Supreme Court: Jail Overcrowding Can’t Be a Ground for Granting Bail in Heinous Crimes