Manchur Devi vs The Central Coalfield Limited and Others

Aparesh Kumar Singh, J.—Heard learned counsel for the parties. The petitioner, who is a widow of deceased employee, is seeking payment of group insurance claim on the death of her husband which is covered under the Memorandum of Understanding entered into between the employer, Central Coalfield Ltd. and the respondent no. 10, Oriental Insurance Company Ltd. The husband of the petitioner was admittedly subscriber to the said policy under MoU and the admissible contribution was being deducted from his salary without dispute by the respondents employer. The death of the employee occurred on 28th June, 2004 as it also appears from the averments made in the writ petition and not disputed by the respondents in their counter affidavit. The claim was sent by the petitioner before the Project Officer, Bhurkunda under the respondents-CCL on 10th September, 2004 i.e. within 90 days period stipulated under the terms and conditions of the MoU for processing the claim by the Insurance Company.

The respondents employer in their statements made in paragraph nos. 13 and 14 of their counter affidavit have also accepted this fact. But at the same time, it has been stated that the claim, in turn, was intimated to the Senior Branch Manager of the Insurance Company vide letter dated 28th November, 2006 beyond two years of making of such claim by the petitioner before the respondents employer. In such circumstances, the Insurance Company has rejected the claim vide letter dated 27th September, 2007. The letter of communication by the respondents-CCL of such rejection contained at Annexure-8 dated 9.10.2007 and 7.1.2008 respectively are also under challenge in the main writ application.

Learned counsel for the petitioner submits that the case of the petitioner is covered by earlier judgment rendered by this Court in the case of Abulash Devi-Vs.-C.C.L. and others vide judgment dated 24th June, 2004 in W.P. (S) No. 2517 of 2008, which has also been taken note in the judgment rendered subsequently in the case of Shabbir Hussain-Vs.-C.C.L. & Ors. vide judgment dated 19th June, 2012 in W.P. (S) No. 5950 of 2002. The said judgment is also brought on record as Annexure-A to the reply of I.A.

Learned counsel for the Respondents-C.C.L. as well as Insurance Company have taken this Court to the judgment rendered by Single Bench of this court in the case of Shabbir Hussain-Vs.-C.C.L. & Ors. (Supra) as also in Letters Patent Appeal decided in the same case by the Division Bench being L.P.A. No. 307 of 2012 vide judgment dated 24th January, 2013 (Annexure-B) and also in another in Letters Patent Appeal being L.P.A. No. 85 of 2013 vide judgment dated 2nd April, 2013 (Annexure: C) to the same affidavit.

I have heard learned counsel for the parties and gone through the relevant materials on record including the judgments relied upon by the parties. From the facts narrated hereinabove which are not in dispute, it is apparent that the petitioner''s case was covered by the terms of the Insurance agreement between the employer and Insurance Company and the deduction had been made regularly from the salary of the husband of the petitioner. The application for processing the claim for payment of group insurance was also made within 90 days time from the date of death of employee i.e. on 10th September, 2004 as admitted in para 14 of the counter affidavit of the respondents CCL. It appears that the delay was caused in sending the claim statements to the Insurance Company on the part of the C.C.L.-employer for which the petitioner cannot be penalized. In such circumstances, there is no reason for withholding the payment of such group insurance amount.

In such circumstances, keeping in line with the aforesaid judgments relied upon by the petitioner as also referred to by the respondents-C.C.L., the respondents-C.C.L. is directed to make the payment of group insurance amount to the petitioner within a period of 8 weeks with 12% interest from the date it was payable. It would be open to the respondents-C.C.L. to seek reimbursement of the amount from the Insurance Company in accordance with law. If the said payment is not made during the aforesaid period, the principal amount shall carry further interest at the rate of 10% per annum till is paid. Accordingly, the writ petition is disposed of in the aforesaid term. Consequently, the I.A. No. 5008 of 2013 is also disposed of.