Appeal Dismissed: No Liability of Bank for Insurance of Hypothecated Vehicle.


08 January 2024 Civil Appeals >> Civil & Consumer Law   |   Insurance >> Personal Law  

The appeal of Shrikant Annappa Shinde & Another v/s Khiraling Basavannappa Shingshetty & Others., concerns two primary issues: the unproven age of the deceased and the failure of the bank to insure a hypothecated vehicle involved in the accident.

The appellant's counsel argued that the age of the deceased was not established and that since the vehicle was hypothecated with Nutan Nagari Sahakari Bank Ltd., it was the bank's responsibility to insure the vehicle. However, this argument was not considered by the Tribunal. The respondent’s counsel contended that the Tribunal had thoroughly considered all aspects of the case and that no interference was required.

 

 

Upon reviewing the case, the court observed that while the Tribunal initially stated the deceased was 20 years old, they revised the age to 26 based on available evidence, which the court found reasonable. Regarding the insurance issue, the appellant claimed that the bank should have insured the hypothecated vehicle. However, the court ruled that no agreement was presented showing that the bank was responsible for the vehicle’s insurance. The owner of the vehicle, not the bank, was obligated to insure it. The accident occurred due to the appellant's negligence, so the bank could not be held liable for the compensation.

Thus, the appeal was dismissed, and the claimant was allowed to withdraw the compensation amount with accrued interest, with the statutory amount transferred to the Tribunal.