Punjab & Haryana HC: Insurance appeals dismissed—257-day delay not condonable

Case Name: HDFC ERGO General Insurance Co. Ltd. v. Ramesh Devi & Ors.; HDFC ERGO General Insurance Co. Ltd. v. Prag & Anr.
Date of Judgment: January 9, 2020
Citation: FAO-665-2020 (O&M) & FAO-671-2020 (O&M)
Bench: Hon’ble Mr. Justice Rajiv Narain Raina

Held: The High Court dismissed two appeals by HDFC ERGO General Insurance Co. against a common MACT award, on the ground of inordinate delay of 257 days in filing. The Court reiterated that private insurance companies cannot expect liberal condonation on the plea of “procedural delays,” especially when valuable rights of claimants have crystallized. Reliance on routine explanations such as file movement between offices was rejected as insufficient cause under Section 5 of the Limitation Act, 1963.

Summary: The Motor Accidents Claim Tribunal, Sonipat, had passed an award on 13.12.2018. The insurer filed appeals after a delay of 257 days, seeking condonation on grounds that internal correspondence and decision-making at the Regional Office delayed the filing. The Court cited earlier precedents (New India Assurance Co. Ltd. v. Meena Rani Punj; Bajaj Allianz v. Amritpal Singh) where even shorter delays had been declined, stressing that private insurers are expected to act swiftly. The Court also distinguished Central Bank of India v. Jagbir Singh (SC), noting that each case depends on facts, and here the stock explanation did not inspire confidence. Further, it observed that prolonging appeals unjustly deprives accident victims of compensation.

Decision: Applications for condonation of delay dismissed. Consequently, both appeals dismissed as barred by limitation.