POSTAL LIFE INSURANCE (PLI), LAHORE vs MUHAMMAD ANWAR and others
This matter arises from an insurance claim filed by the respondent against the petitioner, Postal Life Insurance, which was initially presented before a civil court but subsequently returned under Order VII Rule 10 of the Code of Civil Procedure 1908 for lack of jurisdiction. The Insurance Tribunal constituted under the Insurance Ordinance 2000 adjudicated the claim and ruled in favor of the respondent, a decision upheld by the High Court. The core legal question before the Supreme Court was whether the Insurance Tribunal possessed the requisite jurisdiction to hear and decide insurance claims against the Postal Life Insurance, considering its status under the relevant statutes. The Supreme Court dismissed the petition, holding that since the Pakistan Postal Services Management Board is established as a body corporate under the Pakistan Postal Services Management Board Ordinance 2002 with the statutory function to operate the Postal Life Insurance, the matter falls squarely within the purview of section 171(2) of the Insurance Ordinance 2000, thereby vesting jurisdiction in the Insurance Tribunal. The key principle laid down is that the Postal Life Insurance management board constitutes a body corporate capable of being sued and subject to the jurisdiction of the Insurance Tribunal under the Insurance Ordinance 2000.
- Whether the Insurance Tribunal has jurisdiction to hear and decide insurance claims against the Postal Life Insurance?
- Does the Pakistan Postal Services Management Board qualify as a body corporate under the law?
- Whether the management and operation of Postal Life Insurance falls within the purview of section 171(2) of the Insurance Ordinance 2000?
- Order VII Rule 10, Code of Civil Procedure 1908
- Section 121, Insurance Ordinance 2000
- Section 171(1), Insurance Ordinance 2000
- Section 171(2), Insurance Ordinance 2000
- Section 3, Pakistan Postal Services Management Board Ordinance 2002
- Section 3(2), Pakistan Postal Services Management Board Ordinance 2002
- Section 11, Pakistan Postal Services Management Board Ordinance 2002
- Section 11(2)(e), Pakistan Postal Services Management Board Ordinance 2002
ORDER
MIAN SAQIB NISAR, C.J.---Respondent No,1 (the respondent No,1) earlier filed his insurance claim against the petitioner before the learned Civil Court through Civil Suit, which was resisted and the objection taken was that the jurisdiction for determination of such claims only vests with the Insurance Tribunal. Thus, the plaint was returned under Order VII, Rule 10 of the Code of Civil Procedure, 1908 for presentation before the relevant forum. Subsequently, the Insurance Tribunal constituted under section 121 of the Insurance Ordinance, 2000 (the Ordinance of 2000), after conducting trial, granted the insurance claim to the respondent. The petitioner challenged the order of the Tribunal before the learned High Court by means of an appeal which was dismissed through the impugned judgment.
2. Heard. The only objection raised is that as per the provisions of section 171(1) of Ordinance of 2000, by virtue of the fact that the postal insurance business/petitioner is being carried on by the Federal Government and not by a body corporate, the case does not fall within the purview of section 171(2) of the Ordinance, 2000. Suffice it to say that for the purposes of considering as to what is the status of the Management Board of the Postal Life Insurance/petitioner (the Board), reference has been made to section 3 of the Pakistan Postal Services Management Board Ordinance, 2002 (the Ordinance of 2002) and it is clearly mentioned in subsection (2) thereof that the Board shall be a body corporate having perpetual succession and a common seal, with power, subject to the provisions of this Ordinance, to acquire, hold and dispose of its property, both movable and immovable, and shall by its name sue and be sued. The provisions of section 11 of the Ordinance of 2002, prescribes powers and functions of the Board and as provided in subsection (2)
(e) thereof, such powers include "to manage, maintain and operate the Postal Life Insurance throughout Pakistan". Obviously, the Board is a body corporate, therefore, on the basis of its powers to manage, maintain, control and operate the postal insurance business, the case would fall within the purview of section 171(2) of the Ordinance of 2000 and thus, the Insurance Tribunal shall have the jurisdictior to hear and decide the matter.
2. No other point has been agitated. Thus, no case for interference is made out. Dismissed accordingly.