Law: Insurance Ordinance, 2000

Section: 118

Insurance Ordinance (XXXIX of 2000)--Ss. 118 & 124(2)---Insurance. claim---Liquidated damages, payment of---Principle--Recovery of access amount--Insurance Corporation paid an amount of Rs.13,91,349 although it was alleged that the same was not according to calculation---Subsequent to payment of amount to appellant, the Insurance Corporation issued notice for recovery of excess amount paid to her who assailed the notice before Insurance Tribunal but the same was without any avail--Validity---Employees of Insurance Corporation were responsible for not making payment to appellant within specified period of ninety days and the same led to delay in payment---Corporation could not justify such delay to be beyond the control of Corporation---Calculation of liquidated damages were to be made from 22-6-2000, the date of death of insurer to 29-11-2006, along with rate of interest in accordance with law---Corporation had not placed before Insurance Tribunal nor before High Court any basis of their making disputed calculation-Corporation was not able to substantiate its stance through any supporting material or law---Even otherwise payment had been made to appellant, therefore, Insurance Corporation could not make any recovery from her---Judgment passed by Insurance Tribunal was set aside and recovery memo issued by the Corporation was declared null and void, without lawful authority and having no legal effect on appellant--High Court restrained the Corporation from making any recovery from the appellant---Appeal was allowed accordingly. Mst. Nusrat Malik Saleem v. Federation of Pakistan 2006 CLD 874; PLD 1984 SC 403; 2001 CLC 1743; 2001 YLR 731; 2001 MLD 1169; Controlling Authority, N.-W.F.P. Board of Technical Education, Peshawar and another v. Abdul Salam Secretary, N.-W.F.P. Board of Technical Education PLD 1993 SC 200; Muhammad Shakir and others v. Administrator, District Council, Rajanpur and another 2002 PLC (C.S.) 302 and The Engineer in Chief Branch through Ministry of Defence, Rawalpindi and another v. Jalaluddin PLD 1992 SC 207 rel. JUDGMENT IQBAL HAMEED-UR-RAHMAN, J.---The instant appeal has been filed under section 124(2) of Insurance Ordinance, 2000…

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