Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Consumer Protection |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Consumer Protection – Appellant obtained Insurance Policy from the first respondent to cover his shop – Shop was insured in the value of Rs.18 lakhs – Showroom in which the appellant carried on the business of sanitaryware collapsed as a result of the excavation work being carried on in an adjacent plot – Claim repudiated by the insurer – District Forum allowed the claim in the amount of Rs.18 lakhs with interest @ 9% p.a. from the date of the institution of the complaint – Upheld by State Consumer Disputes Redressal Commission (SCDRC) – Reversed by National Consumer Disputes Redressal Commission (NCDRC) – Held: Dispute turns on construction of Clause VIII (e) of the policy – Clause VIII brings within the purview of the insured perils a loss, destruction or damage directly caused by subsidence of a part of the site on which the property stands or a land slide/rock slide, but excludes, what is stipulated in sub-clauses (a) to (e) – Sub-clause (e), which weighed with the NCDRC, relates to the demolition, construction or structural alterations or repair of any property or groundworks or excavations – Appellant was not engaged in any work of demolition, construction or structural alterations nor was it engaged in any repair of its property – Excavation which was the cause of the loss, was being carried on in a neighbouring plot and not by the appellant in his property – In the absence of specific qualification indicating that the exclusion will apply to an excavation being carried on by a third party, the reasonable construction of Sub-clause (e) of Clause VIII is that it should apply only to a situation where the excavation is being carried on by the insured himself in his own property – Significantly, the words “of any property” qualify the words preceding them namely, “demolition, construction, structural alterations or repair” and not the words that follow – In the event that the two constructions are possible or in the event of an ambiguity, the construction which is beneficial to the insured should be accepted consistent with the purpose for which the policy was taken, i.e. to cover the risk on the happening of a certain event – Impugned judgment set aside – Order of the District Forum, as affirmed by SCDRC is restored. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2020 INSC 52 |
Petitioner | Sangrur Sales Corporation |
Respondent | United India Insurance Company Limited & Anr. |
SCR | [2020] 5 S.C.R. 44 |
Judgement Date | 2020-01-17 |
Case Number | 378 |
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