SHRI BINOD KUMAR SINGH versus NATIONAL INSURANCE COMPANY LTD.

Citation: [2025] 2 S.C.R. 521 · Decided: 06-02-2025 · Supreme Court of India · Bench: B.V. NAGARATHNA · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2025] 2 S.C.R. 521 : 2025 INSC 154
Shri Binod Kumar Singh 
v. 
National Insurance Company Ltd.
(Civil Appeal No. 2214 of 2025)
07 February 2025
[B.V. Nagarathna and Satish Chandra Sharma,* JJ.]
Issue for Consideration
Issue arose as regards the order of the National Consumer 
Disputes Redressal Commission disallowing the insurance claim 
of the appellant.
Headnotes†
Insurance – Insurance claim – Entitlement – Valid National 
permit – Non-depositing of authorization fee – Truck of the 
appellant, insured with the respondent-insurance company, 
caught fire during the insurance period – Direction by the 
State Commission to the respondent to settle the claim on 
non-standard basis – However, the National Commission held 
that the insurance claim cannot be allowed in the absence of 
any valid permit and set aside the order passed by the State 
Commission – Correctness:
Held: National permit was valid – Authorization fee was required 
to be paid only when the truck was moving out of State of Bihar as 
it was registered in the State of Bihar and the truck caught fire in 
the State of Bihar itself, thus, the respondent company could not 
have repudiated the claim on such a frivolous ground – Permit was 
issued by the competent authority in Bihar, thus, no requirement 
of paying authorization fee when the truck was being used in the 
State of Bihar – As per the terms and conditions of the National 
Permit, authorization fee was required to be paid only when the 
truck was moving out of State of Bihar – Thus, the apellant entitled 
for the insurance claim as held by the State Commission – Order 
passed by the National Commission set aside – Appellant not only 
entitled for the entire claim amount right from the date it became 
due but also entitled for interest @ 9% per annum from the date 
* Author
522
[2025] 2 S.C.R.
Digital Supreme Court Reports
of the complaint made before State Commission till the date, the 
amount is actually paid to him. [Paras 8, 9]
Case Law Cited
National Insurance Company v. Nitin Khandelwal, Criminal Appeal 
No. 8463/2014; Amrit Paul Singh and Anr. v. TATA AIG General 
Insurance Co. Ltd. & Ors. (2018) 7 SCC 558 – referred to. 
List of Acts
Insurance; Authorization fee; Validity of insurance cover;  
Non-standard basis; National permit; State Consumer Disputes 
Redressal Commission; National Consumer Disputes Redressal 
Commission; Insurance claim; Valid National permit; Non-depositing 
of authorization fee; Insurance period; Non-standard basis; Absence 
of valid permit; Repudiation of claim; Interest.
List of Keywords
Compounding of offence; Compounding application; First offence; 
Actual date of filing of return of income; Due date for filing of returns; 
Subsequent furnishing of return of income by assessee; Failure 
to furnish returns of income; “Voluntary disclosure”; Guidelines 
for Compounding of Offences under Direct Tax Laws, 2014; 
Guidelines for Compounding of Offences under Direct Tax Laws, 
2008; Guidelines for Compounding of Offences under Direct Tax 
Laws, 2019; Guidelines for Compounding of Offences under Direct 
Tax Laws, 2022; Delay in filing return.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2214 of 2025
From the Judgment and Order dated 19.08.2020 of the National 
Consumers Disputes Redressal Commission, New Delhi in FA 
No. 1778 of 2017
Appearances for Parties
Neeraj Shekhar, Mrs. Kshama Sharma, Rajesh Maurya, Ram 
Bachhan Choudhary, Amrendra Singh, Ms. Priya Chakraborty, 
Ujjwal Ashutosh, Advs. for the Appellant.
Amit Kumar Singh, Ms. K Enatoli Sema, Ms. Chubalemla Chang, 
Prang Newmai, Advs. for the Respondent.
[2025] 2 S.C.R. 
523
Shri Binod Kumar Singh v. National Insurance Company Ltd.
Judgment / Order of the Supreme Court
Judgment
Satish Chandra Sharma, J.
1.	
Leave Granted.
2.	
The present appeal is arising out of order dated 19.08.2020 passed 
by National Consumer Disputes Redressal Commission, New Delhi, 
(for short, “the National Commission”) in First Appeal No. 1778 of 
2017.
3.	
The facts of the case reveal that the appellant before this Court is the 
owner of Truck bearing registration No. BR-02-Q9220 make TATA-
251625.0LPKTC. The truck was insured with the respondent National 
Insurance Company for a period of one year i.e. from 18.09.2013 to 
the midnight of 17.09.2014 and unfortunately, the truck caught fire 
on account of short-circuit on 08.06.2014 meaning thereby during 
the validity of insurance cover. 
4.	
The appellant preferred a c

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