Therefore, the question before the Court was whether the insurance company is absolved of the liability to pay the amount in a case where the vehicle was stolen and was unauthorizedly being driven by somebody else.
It relied on the Supreme Court judgment in United India Insurance Company vs. Lehru and Ors to hold that the insurance company had failed to show any willful breach on the part of insured.
Justice Sachdeva also disagreed with the Madras High Court order which was relied upon by the counsel for the appellant. The Court said that the Madras High Court had not considered the apex court’s judgement in Lehru.
“I am in respectful disagreement with the said judgment of the Madras High Court in New India Assurance Co Ltd vs. Selvarajamani & Ors, 1998 ACJ 547 relied on by learned counsel appearing for the appellant. Said judgment does not consider the proposition as laid down by the Supreme Court in Lehru (supra) as to whether there is a willful breach on the part of the insured or not so as to entitle the insurer to avoid the liability,” the High Court said.
Source: Barandbench
