Calcutta High Court
Megacity Viniyog Pvt Ltd vs National Insurance Co.Ltd & Ors on 21 August, 2008
Author: Indira Banerjee
Bench: Indira Banerjee
WP No. 198 of 2006
IN THE HIGH COURT AT CALCUTTA
Constitutional Writ Jurisdiction
ORIGINAL SIDE
MEGACITY VINIYOG PVT LTD Petitioner
Versus
NATIONAL INSURANCE CO.LTD & ORS Respondent
BEFORE:
The Hon'ble JUSTICE INDIRA BANERJEE Date : 21st August, 2008.
The Court : In this writ application the petitioner has sought orders on the respondent no. 1, hereinafter referred to as the respondent Insurance Company to disburse to the petitioner a sum of Rs. 1,04,80,701/- under Fire Insurance Policy bearing No. 260300/3300008/99.
By an Indenture of Lease dated 28th March 1927 the Premises No. 1, India Exchange Place, Kolkata 700 001, hereinafter referred to as the said premises was leased out to Standard Chartered Bank, which was then known as Chartered Bank of India, for a period of 99 years.
It is stated that on the basis of the aforesaid Indenture of Lease dated 28th March, 1927 Standard Chartered Bank developed the said premises by constructing a new building thereon. Parts of the said building were let out to tenants.
Standard Chartered Bank took out a Fire Insurance Policy bearing no. 260300/3300008/99 dated 1st April, 1999 from the respondent Insurance Company. The said Insurance Policy covered loss on account of fire.
It is stated that on 4th July, 1999 a devastating fire broke out at the said premises and damaged the said premises. 2
On account of the damage that was caused to the said premises Standard Chartered Bank lodged its claim before the respondent company. The respondent Insurance Company agreed to disburse a sum of Rs. 1,04,80,701/- in full and final settlement of the claim of Standard Chartered Bank in respect of the said premises under the policy referred to herein above.
In the meanwhile by a deed of assignment dated 6th October, 2001 Standard Chartered Bank assigned its claim under the aforesaid policy to the petitioner company. A copy of the deed of assignment has been annexed to the writ petition. It appears that the assignment was accepted by the respondent Insurance Company on condition of Standard Chartered Bank and the petitioner executing documents as per the requirements of the respondent Insurance Company.
Standard Chartered Bank was required to furnish the following documents :
(a) Declaration cum Indemnity as per the Draft furnished by the Respondent Insurance Company, duly signed by the authorized officials of the bank.
(b) Deed of Assignment properly worded, assigning to the petitioner company, the right to receive the claim for the loss, under the policy, duly executed on properly Stamped Paper as applicable for such Deed of Assignment under the Stamp Act as applicable in Kolkata.
(c) Letter of Authority from the Standard Chartered Bank in favour of the petitioner company as per draft enclosed by the Respondent Insurance Company.
(d) Proper Declaration-cum-indemnity personally signed by the Directors of the petitioner company as per the draft enclosed by the Respondent Insurance Company.
Under cover of a letter dated 17.1.2004, the petitioner company submitted a declaration cum Indemnity as required by the respondent Insurance Company signed by two of the Directors of the petitioner and a letter of authority of Standard Chartered Bank dated 25th November, 2003 in 3 favour of the petitioner company. The Manager of Standard Chartered Bank wrote a letter to the concerned division of the respondent insurance company, the contents whereof extracted herein below for convenience :
"In the above matter, in view of our Deed of Assignment in favour of M/s. Megacity Viniyog Pvt. Ltd. having their Administrative Office at 41, Chowringhee Road, above Citibank, 2nd floor, Calcutta-700 071 and registered office at 6, Royd Street, Calcutta-700 016, we are hereby irrevocably authorizing M/s. Megacity Viniyog Pvt. Ltd. to receive such amount as may be sanctioned by you. The National Insurance Co. Ltd. in payment of our Fire Claim for the loss suffered due to fire on 4th July, 1999 to our insured property being No. 1, India Exchange Place (formerly known as Royal Exchange Place), Calcutta. They are further irrevocably authorized by us to receive payment in their own name and give valid discharge in full and final settlement against the payment that may released by you and confirm that making such payment to them will discharge you from your all liability to us arising from the fire on 4th July, 1999 to our insured property under your above policy and thereafter we will have no claim of any nature whatsoever against you.
Our this authority (for valuable consideration received) given to M/s. Megacity Viniyog Pvt. Ltd. in their favour is irrevocable and shall always be binding upon us."
By the aforesaid letter Standard Chartered Bank irrevocably authorised the petitioner to receive payments on behalf of Standard Chartered Bank in the name of the petitioner and to give valid discharge in full and final settlement against the payment that might be released by the respondent insurance company to the petitioner.
In the aforesaid letter Standard Chartered Bank clearly stated that Standard Chartered Bank would have no claim of any nature whatsoever against the respondent insurance company in respect of the policy in question. It is also submitted by the learned counsel appearing on behalf of the Standard Chartered Bank on instructions that Standard Chartered Bank shall not claim any amount whatsoever from the respondent 4 insurance company in relation to the Fire Insurance Policy referred to above.
There is no legal bar to assignment of a policy of insurance. It appears that an instrument of assignment is not required to be stamped. The insistences on execution of an instrument on Stamped Paper is misconceived.
A sum of Rs. 1,04,80,701/- having been admitted as payable on account of the fire that broke out in the said premises, the aforesaid amount shall be released to the petitioner expeditiously preferably within three weeks from the date of receipt of an authenticated/certified copy of this order. On payment of the aforesaid amount the respondent insurance company shall be discharged of all liability in respect of the fire insurance policy in question.
The writ application is disposed of.
Urgent xerox certified copy of this order, if applied for, be supplied to the parties subject to compliance with all requisite formalities.
(INDIRA BANERJEE, J.) msen