NATIONAL INSURANCE COMPANY LTD. versus VEDIC RESORTS AND HOTELS PVT. LTD.

Citation: [2023] 7 S.C.R. 419 · Decided: 17-05-2023 · Supreme Court of India · Bench: AJAY RASTOGI · Disposal: Dismissed
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Judgment (excerpt)

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NATIONAL INSURANCE COMPANY LTD.
v.
VEDIC RESORTS AND HOTELS PVT. LTD.
(Civil Appeal No. 4979 of 2019)
MAY 17, 2023
[AJAY RASTOGI AND BELA M. TRIVEDI, JJ.]
Insurance – Repudiation of claim under exclusionary clause
in a policy – Respondent-complainant running a resort obtained
two insurance policies in respect of buildings of the Resort with
plant and machine accessories and furniture etc. – As per respondent,
a mob of about 200-250 persons entered the resort and damaged
the property – Surveyor assessed the loss to the tune of Rs.202.216
lakhs – Appellant-insurance company had repudiated the claim of
the respondent on the ground that the loss caused to the respondent
was an outcome of the malicious act/acts on the part of the
respondent management and it fell within the exclusions provided
under Clause V(d) of the Insurance Policy – Appellant-Insurance
Company had relied upon the incident which had taken place at
the football match ground, where a accused person and his
associates had fired and caused death of one person and injured
others, and thereafter they had taken shelter at the resort of the
respondent – National Commission allowed the complaint filed by
the respondent herein, and directed the appellant to pay a sum of
Rs. 202.216 lakhs to the complainant along with interest – On
appeal, held: There is hardly any material to show that the entire
incident and the resultant damage to the insured property was caused
as a result of the malicious act of the respondent-complainant – In
the instant case, the appellant-Insurance Company had failed to
discharge its burden of bringing the case within the exclusionary
clause V(d) of the policies in question – Appellant-Insurance
Company has failed to make out any such cogent reason for not
accepting the surveyor’s Report – Consumer Protection Act, 1986.
Insurance – Exclusionary clause in a policy – Held: It is trite
to say that wherever there is an exclusionary clause is contained in
a policy, it would be for the insurer to show that the case falls within
the purview of such clause – In case of ambiguity, the contract of
insurance has to be construed in favour of the insured.
[2023] 7 S.C.R. 419
419
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SUPREME COURT REPORTS
[2023] 7 S.C.R.
General Assurance Society Ltd. v. Chandumull Jain and
Anr. AIR 1966 SC 1644 : [1966] SCR 500 – followed.
National Insurance Company Limited v. Ishar Das
Madan Lal (2007) 4 SCC 105 : [2007] 2 SCR 1014 –
relied on.
Case Law Reference
[2007] 2 SCR 1014
relied on
Para 15
[1966] SCR 500
followed
Para 16
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4979
of 2019.
From the Judgment and Order dated 07.01.2019 of the National
Consumers Disputes Redressal Commission, New Delhi in CCN No.
227 of 2012.
Vishnu Mehra, Ms. Manjeet Chawla, Kunal Malhotra, Mrs. Usha
Pant Kukreti Advs. for the Appellant.
Sukumar Pattjoshi, Sr. Adv., Susmit Pushkar, Gaurav Sharma, Raj
Mohan Gupta, Naina Agarwal, Advs. for the Respondent.
The Judgment of the Court was delivered by
BELA M. TRIVEDI, J.
1. The aggrieved appellant-Insurance Company has filed the
present appeal under Section 23 of the Consumer Protection Act, 1986
(hereinafter referred to as the said Act) challenging the judgment and
order dated 07.01.2019 passed by the National Consumer Disputes
Redressal Commission, New Delhi (hereinafter referred to as the
“National Commission”) in Consumer Complaint No. 227 of 2012,
whereby the Commission has allowed the complaint filed by the
complainant (respondent herein), and directed the appellant to pay a
sum of Rs. 202.216 lakhs to the complainant along with interest @ 9%
per annum from six months from the date of lodgment of the claim till
the date on which the said payment is made.
2. The respondent-complainant, running a Resort at Village
Shikharkpur, P.S. Rajarhat, District 24- Paraganas, (South) of West
Bengal had obtained two insurance policies from the appellant-Insurance
Company, one being Policy No. 100900/11 / 08/3300000420 for the period
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from 16th September, 2008 to 15th September, 2009 in respect of the
buildings of the said Resort with plant and machineries accessories and
furniture etc. and the other being Policy No. 100900/11/09/3100000270
for the period from 13th July, 2009 to 12th July, 2010 in respect of two
hotel buildings at the said resort with stock.
3. As per the case of the respondent-complainant on 23rd August,
2009 at about 5.00 p.m., a mob of about 200-250 persons entered the
resort
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