Law: Insurance Ordinance, 2000

Section: 122,124

Law: Qanun-e-Shahadat (10 of 1984)

Section: 114

(a) Insurance Ordinance (XXXIX of 2000)--- ----Ss. 122 & 124---Qanun-e-Shahadat (10 of 1984), Art. 114---Insurance appeal---Insurance claim, admitted by the Insurance Company---Scope and effect---Insurance Company admitted the claim of policy-holder and made partial payment ; and stated before the Insurance Tribunal that the outstanding amount would be paid on availability of the funds---Insurance petition was disposed of on the statement of the company partly decreeing the claim, however, company later preferred appeal against the judgment passed by the Tribunal---Record revealed that appellant/company freely and explicitly acknowledged the claim of the respondent/policy-holder---Payment of partial claim tantamount to admission of its liability regarding the decretal amount---Admission/statement/undertaking by a party during the judicial proceedings had to be given sanctity while applying the principle of legal estoppel and estoppel by conduct as well as to respect moral and ethical rules---At the subsequent stage a party cannot turn around to wriggle out from the consequence of such admission---If disclaimer therefrom is allowed as a matter of right, then it will definitely result into distrust of the public/litigants over the judicial proceedings---Article 114 of the Qanun-e-Shahadat, 1984, provids that when a person has by his declaration, act or omission intentionally caused or permitted another person to believe a thing to be true and to act upon such belief, neither he nor his representative is allowed in any suit or proceedings between the parties to deny the truth of that thing---Said provision enacted a rule of evidence whereby a person was not allowed to plead contrary to a fact or a state of thing which he formerly asserted as existing and made the other party believe it as such and then the party acted on such belief---In fact, said principle was founded on equity and justness with straightforward objective to prevent fraud and ensure justice---Appellant in unequivocal terms agreed to pay back the remaining claim of respondent, which resulted into passing impugned judgment therefore, company was not allowed to challenge the same (decision) by…

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