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Patna High Court

Raushan KumarversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The court held that the insurance company must pay Rs.62,434 to Tata Capital and Rs.11,566 to the petitioner from the settlement amount.

Summary

Petitioner Raushan Kumar filed a writ petition seeking payment of a settlement amount from Tata A.I.G. General Insurance Company. The parties agreed that a total of Rs.74,000 would be paid, of which Rs.62,434 would satisfy the petitioner’s debt to Tata Capital and the balance of Rs.11,566 would go to the petitioner. The court examined whether the insurance company was bound to honor this settlement under the insurance contract. It directed the insurer to disburse Rs.62,434 to Tata Capital and the remaining Rs.11,566 to the petitioner within two weeks. The petition was thereafter disposed.

Issues considered

  • Whether the insurance company is obligated to pay the agreed settlement amount, allocating Rs.62,434 to Tata Capital and the balance to the petitioner

Subjects

  • insurance
  • settlement
  • writ petition
  • civil writ jurisdiction
  • payment
  • contract

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.3499 of 2025
                 ======================================================
                 Raushan Kumar, Son of Ram Chandra Sah, Resident of village - Khairatali
                 near Surya Mandir, P.S. Parsa Bazar, District - Patna.

                                                                            ... ... Petitioner/s
                                                    Versus
           1.    The State of Bihar through District Magistrate, Patna.
           2.    Tata A.I.G. General Insurance Company 5th Floor A.M.S. Park, Boring
                 Road Crossing, Hira Panna Jewelers Patna- 800001.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :      Mr.Prem Kumar, Adv.
                 For the Respondent/s   :      Mr.Government Pleader 18
                                               Mrs. Surekha Kumari, AC to GP 18
                 For the Resp. No. 2           Mr. Hrishikesh, Adv.
                                               Mr. Chandramauli Kumar, Adv.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                       ORAL ORDER

5   24-03-2026                 It is stated by the learned counsels appearing on

                   behalf of the petitioner as well as the Respondent No. 2 that the

                   settlement has been arrived between the parties and the

                   petitioner has agreed for payment of Rs.74,000/- as full and

                   final settlement. Further it is stated that the petitioner is due an

                   amount of Rs.62,434/- to the TATA Capital and the petitioner

                   has agreed for paying the same from out of Rs.74,000/-, i.e.,

                   likely to receive from the Respondent No. 2 (Insurance

                   Company).

                               2. Having regard to the same, the present writ petition

                   is disposed of directing the Respondent No. 2 (Insurance

                   Company) to pay an amount of Rs. 62,434/- out of the total
             Patna High Court CWJC No.3499 of 2025(5) dt.24-03-2026
                                                         2/2




                       settlement amount of Rs.74,000/- to the TATA Capital and the

                       balance remaining amount of Rs.11,566/- to the petitioner. The

                       entire exercise shall be completed as expeditiously as possibly

                       preferably within a period of two weeks from today.

                                   3. With the above direction, the present writ petition

                       stands disposed of.



                                                               (A. Abhishek Reddy , J)
Bhardwaj/-

U


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