NATIONAL INSURANCE CO. LTD. versus SUJIR GANESH NAYAK AND CO. AND ANR.

NATIONAL INSURANCE CO. LTD. versus SUJIR GANESH NAYAK AND CO. AND ANR.

Clauses 19 and 12 of the insurance policy extinguish the right itself if action is not commenced within the stipulated period, and are not hit by Section 28 of the Contract Act. The suit was filed after the right stood extinguished, and the claim is not allowed.

Parties
Appellant: National Insurance Co. Ltd.; Respondent No. 1: Sujir Ganesh Nayak & Co.; Respondent No. 2: Respondent No. 2
Jurisdiction
India
Judgment Date
21 March 1997
Procedural Posture
Civil Appeal / Appeal From Kerala High Court Judgment Dated 27.7.95 in A.s. No. 140 of 1987
Outcome
Appeal allowed; suit dismissed.
Legal Topics
Validity of Insurance Policy Clauses Regarding Limitation, Section 28 of Contract Act, Forfeiture Clauses, Period of Limitation Under Limitation Act
Contract Law Insurance Law Limitation Law Validity of Insurance Policy Clauses Regarding Limitation Section 28 of Contract Act Forfeiture Clauses Period of Limitation Under Limitation Act

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Parties

National Insurance Co. Ltd.

Appellant

Sujir Ganesh Nayak & Co.

Respondent No. 1

Respondent No. 2

Respondent No. 2

Procedural Posture

Civil Appeal / Appeal From Kerala High Court Judgment Dated 27.7.95 in A.s. No. 140 of 1987

Legal Issues

  1. 1 Whether Clause 19 and forfeiture Clause 12 of the insurance policy are valid and effective even if the period specified is shorter than that prescribed under the Limitation Act
  2. 2 Whether such clauses are hit by section 28 of the Contract Act
  3. 3 Whether the claim made by the insured is covered under the insurance policies

Ratio Decidendi

Clauses 19 and 12 of the insurance policy extinguish the right itself if action is not commenced within the stipulated period, and are not hit by Section 28 of the Contract Act. The suit was filed after the right stood extinguished, and the claim is not allowed.

Court Disposition

Appeal allowed; suit dismissed.

Orders

  • Set aside the decree, order and judgments of the courts below.
  • Suit stands dismissed with no order as to costs throughout.