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Patna High Court

Zurich Kotak General Insurance Company India LimitedversusThe Insurance Ombudsman,

Decided
Disposal
ALLOWED

Holding

The Court set aside the award dated 11 April 2025 and remanded the matter to the Insurance Ombudsman for fresh consideration with the petitioner impleaded as a party respondent.

Summary

Zurich Kotak General Insurance Company filed a writ petition challenging an award dated 11 April 2025 passed by the Insurance Ombudsman, which directed it to pay Rs. 11,29,359 with interest. The petitioner argued that the award was passed on the same cause of action for which an earlier award had already been made, rendering the later award invalid. The High Court examined the petitioner's claim and the procedural deficiencies, notably that the petitioner was not made a party respondent before the award was passed. The Court set aside the impugned award, modified the earlier order, and remanded the matter to the Ombudsman to rehear the case, ensuring the petitioner is impleaded as a respondent and given an opportunity to object. The remitted proceedings must result in a reasoned award based on evidence from both parties.

Issues considered

  • Whether the award passed by the Insurance Ombudsman is vitiated by being on the same cause of action as an earlier award
  • Whether the High Court can set aside the Ombudsman’s award and remand the matter for fresh consideration
  • Whether the petitioner should be made a party respondent before the Ombudsman proceeds

Subjects

  • insurance
  • ombudsman
  • award
  • same cause of action
  • writ jurisdiction
  • quashing award
  • remand
  • interest

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 Civil Writ Jurisdiction Case No.8570 of 2025
                 ======================================================
                 Zurich Kotak General Insurance Company India Limited (Formerly known as
                 Kotak Mahindra General Insurance Co. Ltd.), having its registered office at
                 27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra East, P.S. Mumbai-
                 City, PIN- 400051, District- Maharashtra and Branch office situated at 4th
                 Floor, 409, N.P. Centre, New Dakbunglow Road, P.S.- Kotwali, Patna, Bihar-
                 800001 through its authorized signatory Mr. Gautam Yadav (Male), aged
                 about 39 years.

                                                                      ... ... Petitioner/s
                                                   Versus
           1.    The Insurance Ombudsman, Office of the Insurance Ombudsman, States of
                 Bihar and Jharkhand, 2nd Floor, Lalit Bhawan, Patna.
           2.    Secretary, Insurance Ombudsman, Office of the Insurance Ombudsman,
                 States of Bihar and Jhakhand, 2nd Floor, Lalit Bhawan, Patna.
           3.    Council for Insurance Ombudsman, having its office at 3rd Floor, Jeevan
                 seva Annexe, S.V. Road, Santacruz (W), Mumbai- 400054.
           4.    M/s Sushil Enterprises, Revelganj, Anand Nagar, Saran through its
                 proprietor Mr. Sushil Kumar.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :       Mr. Dayanand Singh, Advocate.
                 For the Respondent/s   :       Mr. Raj Dular Sah, Advocate.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                       ORAL ORDER

8   17-03-2026                   Today the matter has been listed under the heading

                   ‘To Be Mentioned’ at the instance of the learned counsel for the

                   petitioner.

                                 2. It has been pointed out that the prayer sought for in

                   I.A. No. 01 of 2025 which was ordered on 23.06.2025, could

                   not be incorporated inadvertently in the order dated 29.01.2026.

                   The prayer sought for in the I.A. No. 01 of 2025 is as under:-

                                                      “(vi)   For   issuance  of
                                             appropriate writ/ order / direction
Patna High Court CWJC No.8570 of 2025(8) dt.17-03-2026
                                            2/3




                                       thereby quashing the Award No.
                                       IO/PAT/A/G1/0001/2025-2026          dated
                                       11.04.2025, passed by Insurance
                                       Ombudsman, Patna with respect to
                                       Complaint Ref No. PAT-G-054-2526-
                                       0001, whereby the Petitioner Company
                                       has been directed to pay Rs. 11,29,359
                                       along with an interest @ 8.75% to be
                                       computed from 27.12.2024 as the same
                                       has been instituted on same cause of
                                       action    for     which     Award     No.
                                       IO/PAT/A/GI/0612/2024-25,           dated
                                       10.03.2025 has already been passed by
                                       the Respondent Insurance Ombudsman.
                                                 (vii)    For     issuance    of
                                       appropriate writ / order / direction
                                       thereby staying the operation of Award
                                       No. 10/PAT/A/GI/0001/2025-2026 dated
                                       11.04.2025 passed by the Respondent
                                       Insurance Ombudsman during the
                                       pendency and till the disposal of the
                                       present writ application.”

                      3. Having regard to the above made submissions and

          the prayer sought for in the I.A. No. 01 of 2025, the impugned

          order dated 11.04.2025 in Award No. IO/PAT/A/GI/0001/2025-

          2026 passed by the Insurance Ombudsman, Patna is set aside

          and the matter is remanded back to the authority for considering

          the case afresh. The authority shall put the complainant on

          notice and direct him to make the petitioner herein a party

          respondent       to    the     proceedings     before   the   Insurance

          Ombudsman. In case the petitioner is impleaded as a party
           Patna High Court CWJC No.8570 of 2025(8) dt.17-03-2026
                                                       3/3




                     respondent, the authority will then issue a notice to the

                     petitioner herein and give him an opportunity of filing his

                     objections. After the objections are received from the petitioner,

                     the authority based on the evidence adduced by both the parties

                     will pass a reasoned award giving the reasons either for

                     allowing the claim of the Respondent No. 4 herein or rejecting

                     the same. Any orders passed shall be communicated to the

                     parties.

                                 4. The order dated 29.01.2026 is modified to the

                     extent indicated above.

                                 5. This order shall be treated as part and parcel of the

                     order dated 29.01.2026.



                                                         (A. Abhishek Reddy, J)
shakir/-

U


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