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Monday, February 22, 2010

New SC ruling on insurance services

Supreme Court of India CIVIL APPEAL NO.5611 of 1999

ECONOMIC TRANSPORT ORGANIZATION versus CHARAN S. MILLS (P) LTD

Judge(s): R. V. RAVE.,D.K. JAIN,P. SATHASIVAM ,J.M.PANCHAL

Date of Judgment: 17 February, 2010


The Supreme Court has held that an insurance company and the consignor (assured) can jointly sue a transporter or carrier for compensation towards deficiency of service.

A five-judge Constitution bench headed by Chief Justice K G Balakrishnan, Justices R V Raveendra, D K Jain, P Sathasivam and J M Panchal ruled the insurance company cannot be precluded from recovering the compensation from carrier as long as the complaint was jointly filed or under the power of attorney granted by the assured (consginor).

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