2024High CourtInsuranceLatestLegalOctober 2024

Commercial “Dispute” – Claim against third party and based on tort for damages

The Appellants – Plaintiffs filed commercial suit for recovery of Rs.24,69,07,055/- against the Defendant-company engaged in providing handling services at Airport.

The Appellants are Insurer of the Indigo Airlines Aircrafts.

In the accident of 26.5.2018 at Nagpur Airport, damage to the Indigo aircraft was caused due to negligence of the Defendant, the amount was paid by the plaintiffs to Indigo for the damages, Indigo has purportedly assigned its right to the plaintiffs against the defendant and stepped into the shoes of Indigo.

The maintainability of commercial suit filed against the Defendant for the loss arising out of the negligence of the Defendant and the Insurance Agreement with the Indigo Airlines for its Aircrafts.

The Commercial Court, by the Order dated 13.2.2024, returned the plaintiff under Order VII Rule 10 of the Code of Civil Procedure.

HELD that in the absence of any relation or privity of contract of the plaintiffs with the third party – Defendant and the relief is based on tort, it is not a “commercial dispute”.   Therefore, it is not covered by “insurance and reinsurance” under Section 2(1)(c)(xx) of the 2015 Act.

Order dated 10.10.2024 of the Bombay High Court (Nagpur Bench) in Commercial Appeal No.3 of 2024 of New India Assurance Co. Ltd.  Vs. Janus Aviation Pvt Ltd.

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