UNITED INSURANCE COMPANY LTD.And Another vs Messrs MEHLODY
This is a petition for leave to appeal filed against the judgment and decree of the Peshawar High Court, which affirmed the trial court's judgment awarding Rs.3,09,927 as insurance claim for loss by fire and Rs.1,00,000 as damages for mental torture and inconvenience. The core legal questions involve whether the risk of fire was covered on the date of the incident and whether the lower courts were justified in decreeing the suit based on the evidence. The Supreme Court granted leave to appeal, staying the execution of the damages portion unconditionally and staying the execution of the decretal loss amount subject to deposit with the trial court.
- Whether the risk of fire was covered on the day when the fire had taken place?
- Whether the trial Court was justified to decree the suit of the respondents on the basis of the evidence brought on record?
ORDER
AJMAL MIAN, J.----This is a petition for leave to appeal against the judgment dated 29-11-1994 passed by a Division Bench of the Peshawar High Court, filed by the petitioners against the judgment and decree dated 5-5-1993 of the learned Civil Judge 1st Class, Peshawar, amounting to Rs.4,09,927 i.e. Rs.3,09,927 being the amount of loss on account of fire and Rs.1,00,000, being the amount of damages for the mental torture and inconvenience suffered by the respondents awarded on the basis of an insurance policy, dismissing the same by affirming the above judgment/decree of the trial Court. The petitioners have, therefore, filed the present petition for leave to appeal.
2. In support of the above petition, we have heard Mr. M. Sardar Khan, learned A.S.C. For the petitioners, and Mian Younas Shah, learned A.S.C. For the respondents/caveators. We are inclined to grant leave to consider the following questions:------
(i) Whether the risk of fire was covered on the day when the fire had taken place, namely, on 14-3- 1981? And
(ii) Whether the trial Court was justified to decree the suit of the respondents as prayed for on the basis of the evidence brought on record and the High Court was justified to affirm the same?
Leave is, accordingly, granted. The execution of the decree is stayed to the extent of Rs.1,00,000, being the amount of damages granted for the mental torture suffered by the respondents without any condition. However, the execution of the decretal amount, namely, Rs.3,09,927, being the amount of loss, is stayed subject to deposit of the aforesaid decretal amount with the trial Court within a period of to months from today. It will be open to the respondents to apply for the withdrawal of the above amount to the trial Court and to withdraw the same on furnishing of security to the satisfaction of the trial Court after notice to the petitioners. In case the petitioner fails to deposit the above amount within the above specified period, it will be open to the respondents to execute the decree to the extent of Rs.3,09,927 and the proportionate costs.