Oriental Insurance Co. Ltd. vs East India Transport Agencies

M.P. Chandrakantaraj Urs, J.—This revision u/s 18 of the Karnataka Small Causes Courts Act is by the plaintiff. The plaintiff is the Oriental Insurance Company Limited. It presented a suit for recovery of Rs. 5,993.85 from the defendants, East India Transport Agencies, in view of the fact that certain goods insured by the plaintiff for the consignor were not delivered. In that circumstances, the insured issued notice u/s 10 of the Common Carriers Act and the insurance company settled the claim in the sum of Rs. 5,093.85 as against the claim of the consignor in the sum of Rs. 6,124.88, and, therefore, the insurer presented the suit.

The facts themselves are not in dispute. The suit came to be dismissed on the short ground that the consignor also was not made a party. The plaintiff was also found fault with inasmuch as the cause title disclosed was written by the Regional Manager, while the Deputy Manager had signed and verified the plaint averments.

Once the insurance company settled the claim, all rights which the consignor had to recover the value of the property entrusted to the carrier as damages automatically enures to the benefit of the insurer. He need not seek a separate assignment of the right to sue. Once the common carrier is aware that the goods are insured, his liability will be in relation to both the consignor and the insurer.

In that view of the matter, the finding recorded by the Court of Small Causes, Bangalore, that a separate assignment is necessary would be illegal and is, therefore, liable to be interfered with u/s 18 of the Small Causes Courts Act.

That the plaint averments are verified and signed by a person other than a person who is said to belong to the plaintiff-company is only a technical defect as long as it is demonstrable that he had authority to verify the plaint which would be sufficient to cure any defect. In fact, the power-of-attorney has now been produced. In the light of the conclusion reached by me as above, the revision petition is allowed, the order under revision is set aside and the matter is remitted to the lower court for disposal of the suit claim in accordance with law.