Bombay High Court
FUTURE GENERALI INDIA INSURANCE CO. LTD.,versusMR. FIROZ AHMED ALI HASAN AND ORS.
- Decided
- Disposal
- Dismissed
- Bench
- R M JOSHI
Holding
The Tribunal was justified in discharging insurer No.1; the appeal is dismissed.
Summary
The appeal concerned a motor accident in which a taxi insured by Future Generali India Insurance and a bus insured by United India Assurance were involved, with both drivers found to be contributorially negligent. The Tribunal had discharged United India Assurance from liability on the ground that the insurance policy produced by the claimant was fake and fabricated. The appellant argued that the Tribunal should not have discharged the insurer solely on that basis and that liability could not be shifted to the second insurer. Citing the Supreme Court’s decision in Khenyei v. New India Assurance, the Court affirmed that in cases of composite negligence claimants may recover the entire compensation from any joint tortfeasor. The High Court held that the Tribunal was justified in its finding and dismissed the appeal, disposing of any pending applications.
Issues considered
- Whether the Tribunal was justified in discharging insurer No.1 (United India Assurance) from liability on the ground that its policy was fake and fabricated.
- Whether liability for compensation can be fastened on insurer No.2 (Future Generali) in a case of composite negligence.
- Effect of composite negligence on the claimant’s right to claim full compensation from any joint tortfeasor.
Subjects
- composite negligence
- insurance liability
- fake insurance policy
- motor accident compensation
- joint tortfeasors
- claimant rights
Judgment
05-FA-798-2023.DOC
Rekha Patil
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
FIRST APPEAL NO. 798 OF 2023
WITH
INTERIM APPLICATION NO. 14230 OF 2023
IN
FIRST APPEAL NO. 798 OF 2023
Future Generali India Insurance Co. Ltd. …Appellant
Versus
Firoz Ahmed Ali Hasan And Ors. …Respondents
Mr. Rajesh Kanojia with Prachi Pawar i/b Res Juris, for the
Appellant.
Mr. T. J. Mendon with T. R. Kale, for the Respondent Nos. 1 to 6.
Ms. Namrata Gawde i/b Varsha Chavan, for the Respondent No.9.
CORAM: R. M. JOSHI, J.
DATED: 8TH JANUARY 2026
PC:-
1. This Appeal, by consent of both the sides heard finally at the
stage of Admission.
2. A short question involved in this Appeal is, as to whether
the Tribunal was justified in discharging insurer No.1 i.e. United
India Assurance Company Limited from liability of payment of
REKHA compensation in respect of the accident in question.
PRAKASH
PATIL
Digitally signed
by REKHA
PRAKASH PATIL
Date: 2026.01.09
18:39:19 +0530
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05-FA-798-2023.DOC
3. Learned Counsel for the Appellant submits that it was not
open for the Tribunal to discharge the said insurance company for
liability of payment of compensation solely on the ground that the
policy of the said insurance company was found to be fake and
fabricated. It is his submission in any case the liability of payment
of compensation, even in case of composite negligence, it cannot
be fasten upon the Appellant i.e. insurer No.2 in the original
proceeding. Learned Counsel for the claimant as well as insurer
No.1 supported the impugned Judgment and Award.
4. Perusal of the record indicates that the Tribunal on the basis
of the evidence led before it has recorded the finding that both
vehicles, i.e., taxi insured by the present Appellant and bus
insured by insurer No.1 were involved in the occurrence of the
accident, and attributed contributory negligence to both drivers. It
is settled position of law in view of the judgment in the case
Khenyei vs. New India Assu. Co. Ltd. And Ors. (2015 ACJ 1441
(SC) that in case of composite negligence, the claimants are
entitled to claim entire compensation from both or any of the joint
tortfeasors. Once the Order passed by the Tribunal holding
composite negligence of both drivers of both the vehicles in
occurrence of the accident, the said judgment would apply to the
present case.
5. It is pertinent to note that the Tribunal has recorded finding
on the basis of evidence on record that the insurance policy
produced by the claimant in respect of insurer No.1 is fake and
fabricated. Once the same is proved, question fastening the
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05-FA-798-2023.DOC
liability of payment of compensation of the said insurer does not
arise.
6. Consequent to the above discussion, this Court finds no
merits in the Appeal. Hence, the following order.
ORDER
(a) The Appeal stands dismissed.
(b) In view of dismissal of the Appeal, pending
Applications, if any, stand disposed of.
7. The Appeal stands disposed of accordingly.
(R. M. JOSHI, J.)
{
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