UNIVERSAL INSURANCE CO. LTD. Versus RANA BASIT RICE MILLS (PVT.) LTD.

ORDER

C.M. No. 2 of 2023

ASIM HAFEEZ, J.--- Seeks permission to place on record copy of marine insurance poly. Document is taken on record subject to all just and legal exceptions.

Main petition

2. Petition is directed against order dated 04.04.2023, whereby Insurance Tribunal Lahore (`Tribunal') dismissed jurisdictional objection, raised by the petitioner [insurer] against assumption of jurisdiction by the Tribunal on the claim brought by respondent No.1 [Assured] with respect to the Marine Insurance Policy. Tribunal assumed jurisdiction, which proceeded to decide the issue of jurisdiction as preliminary issue, in the light of the order dated 02.03.2023, passed white disposing of appeal bearing I.C.A No. 14187/2023, preferred by the petitioner. Order of assumption of jurisdiction dated 04.04.2023 is subject of adjudication.

3. Learned counsel for the petitioner objected to the assumption of jurisdiction by the Tribunal based on the construction of section 115 of the Insurance Ordinance 2000 (`Ordinance'). And another ground was that earlier respondent No.1 had filed claim before the Insurance Tribunal Okara, which claim was dismissed on jurisdictional question, while invoking section 115 of the Ordinance, hence, subsequent claim is non-est. Learned counsel for the petitioner argued that claim once dismissed cannot be reagitated. And Tribunal failed to consider the factum and effect of order of dismissal of claim, dated 16.01.2021, which dismissal order attained finality, when respondent No.1 withdrew appeal against said order.

It is notable that during pendency of subsequent action by the respondent No.1, petitioner filed application for rejection of the claim, which application was dismissed, and order was maintained by this court while dismissing constitutional petition. Petitioner preferred appeal, which was disposed of with direction to treat jurisdictional issue as preliminary one and decide it on priority - order of 02.03.2023 in I.C.A. No. 14187/2023.

4. Conversely, learned counsel appearing for respondent No.1 placed reliance on the decision in the case titled "Messrs Reliance Insurance Company Limited v. Messrs Ahsan Ikram Textile (Pvt.) Limited" (2022 LHC 3939), and pleaded that notwithstanding existence of section 115 of the Ordinance, jurisdiction to entertain and adjudicate claim based on marine insurance, is available in terms of section 122 of the Insurance Ordinance, 2000.

Determination:

5. Objections are twofold. Firstly, there is objection of lack of jurisdiction in terms of section 115 of the Ordinance, and secondly the effect of order of dismissal of claim by Insurance Tribunal Okara, vide order of 16.01.2021 - which essentially is plea based on the principle of Res-judicata. Objections raised represent distinct categories, whereby latter objection can be adjudicated only once issue of jurisdiction is settled. It is absurd to conceive that Tribunal otherwise lacking in jurisdiction would proceed to decide the question of effect of principle of Res-judicata.

It is quite clear that learned Division Bench of this Court vide order dated 02.03.2023, in I.C.A No. 14187/2023, observed that Insurance Tribunal shall treat the issue of jurisdiction as primary issue and decide the same in first instance. Tribunal heard and decided the issue of jurisdiction in affirmative. The objection with respect to the exclusion of jurisdiction in terms of section 115 of the Ordinance 2000 is misconceived. Scope and effect of section 115 of the Ordinance was discussed and emphatically decided in the case of "Messrs Reliance Insurance Company Limited v. Messrs Ahsan Ikram Textile (Pvt.) Limited". Relying upon the ratio settled Tribunal rejected objection to the jurisdiction, which determination calls for no interference in absence of any error of law. So far as the question of effect of Res-judicata is concerned, which is a different specie and can be agitated, if so advised. It is apparent that Tribunal had decided the issue of jurisdiction, specifically. It is pertinent to mention that scope and extent of application of provisions of Marine Insurance Act, 2018 is not the subject matter of controversy before this Court, hence, no observation or analysis is required.

6. This petition is devoid of merits and same is hereby dismissed to the extent of determination of the question of jurisdiction and assumption of jurisdiction by the Tribunal. This order will not prejudice the right of the petitioner to agitate other objections against the claim. No order as to the costs.

MH/U-3/L Petition dismissed.