14.10. In its literal sense, subrogation is the substitution of one
person for another. The doctrine of subrogation confers upon the insurer the
right to receive the benefit of such rights and remedies as the assured has
against third parties in regard to the loss to the extent that the insurer has
indemnified the loss and made it good. The insurer is, therefore, entitled to
exercise whatever rights the assured possesses to recover to that extent
compensation for the loss, but it must do so in the name of the assured, vide
Oberai Forwarding Agency v. New India Assurance Co. Ltd., (2000) 2 SCC 407.
8. Before
we advert to the merits of delay condonation application and the appeals, it
may be mentioned that previously, this Commission held that the complaints were
not maintainable in view of Oberai Forwarding Agency Vs. New
India Assurance Co. Ltd. [(2000) 2 SCC 407]. That order was challenged by the insurer in
Civil Appeal No.212-213 of 2004.
14.10. In its literal sense, subrogation is the substitution of one person for another. The doctrine of subrogation confers upon the insurer the right to receive the benefit of such rights and remedies as the assured has against third parties in regard to the loss to the extent that the insurer has indemnified the loss and made it good. The insurer is, therefore, entitled to exercise whatever rights the assured possesses to recover to that extent compensation for the loss, but it must do so in the name of the assured, vide Oberai Forwarding Agency v. New India Assurance Co. Ltd., (2000) 2 SCC 407.
17.4 Similarly, in Oberai Forwarding Agency v. New India Assurance Co.
Ltd., (2000) 2 SCC 407, the Hon'ble Supreme Court held that subrogation creates a
lawful nexus between the insurer and the carrier, enforceable in a court of law.
19. Reliance placed by learned counsel for the respondent on the
judgment of the Supreme Court in Oberoi Forwarding Agency Vs.
New India Assurance Company Ltd. (2000) 2 SCC 407, to contend
that the document is an assignment and as such the petitioner has
ceased to have any right to invoke arbitration, is misplaced for the
reason that the Constitution Bench of the Supreme Court in Economic
Transport Organization Delhi (supra) specifically held that the
principle in Oberoi Forwarding Agency (Supra) was not correctly
ARB. P. 180-2022 & 181-2022 Page 17 of 19Signature Not VerifiedDigitally Signed By:KUNALMAGGU
Signing Date:08.07.2022 21:02:41
This file is digitally signed by PS
to HMJ Sanjeev Sachdeva.
19. Reliance placed by learned counsel for the respondent on the
judgment of the Supreme Court in Oberoi Forwarding Agency Vs.
New India Assurance Company Ltd. (2000) 2 SCC 407, to contend
that the document is an assignment and as such the petitioner has
ceased to have any right to invoke arbitration, is misplaced for the
reason that the Constitution Bench of the Supreme Court in Economic
Transport Organization Delhi (supra) specifically held that the
principle in Oberoi Forwarding Agency (Supra) was not correctly
ARB. P. 180-2022 & 181-2022 Page 17 of 19Signature Not VerifiedDigitally Signed By:KUNALMAGGU
Signing Date:08.07.2022 21:02:41
This file is digitally signed by PS
to HMJ Sanjeev Sachdeva.
7. We have perused the relevant record and the case law cited by
the parties. It may be noted that
previously, FA No.125 of 1998 i.e. the present appeal was allowed by this
Commission vide order dated 22.11.2006 on the ground that the insurer could not
be treated as consumer qua the appellant in view of the Oberai
Forwarding Agency Vs. New India Assurance Co. Ltd.
(2000) (2) SCC 407. The issue was decided by the larger Bench of the Supreme
Court and by allowing Civil Appeal No.1712 of 2007 in view of judgment in M/s.
Economic Transport Organisation Vs. M/s. Charan Spinning Mills (P) Ltd.
& Anr. In Civil Appeal
No.5611 of 1999, the said order was reversed.