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1996 (11) TMI 467

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..... d was ₹ 11,25,000/. The vessel was mortgaged in favour of the appellant (as a successor to the Director of Ports, Government of Gujarat). In the year 1982, Ramesh Chandra sold the said vessel to the first respondent Shri Haji Daud Haji Haran Abu, for a sum of ₹ 3,00,000/-. In June 1987 the said vessel, on its voyage form Dubai to Bombay, was caught in a hurricane and sank at sea. The vessel was insured with the United India Insurance Company Limited, the third respondent in this appeal. When Haji Daud laid a claim for the insurance amount, the insurance company refused to pay the amount to him on the ground that he has no insurable interest in the vessel, whereupon Haji Abu laid a complaint before the National Consumer Commis .....

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..... mplainant before us. It appears that the title in this property was not transferred in the name of the complainant inasmuch as the mortgagee* also had an interest in the property along with purchaser. The possession of the vessel and its custody was with the complainant. In fact it is seen from the communication of 25th September, 1992 by the Gujarat Maritime Board to the insurance company that the insured ** was considered by the Board as insurance amount should be paid only to the Maritime Board. (emphasis supplied) The expression mortgagee obviously refers to the appellant herein. The expression insured refers to Haji Abu. (The appellant-Board was not a party to the proceedings at this stage.) Having recorded the said fi .....

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..... he respondents therein. On June 14,1996, however, the Commission passed a short order directing that the entire insurance amount be paid to Haji Abu, leaving the appellant to adopt such remedies as are open to it in law. The first order of the Commission dated January 12, 1995 clearly shows that the fact that the appellant had an interest in the vessel as a mortgagee was clearly brought to the notice of the Commission. Indeed, the Commission also refers to a letter written by the appellant to the Insurance Company that it alone is entitled to the entire insurance amount. Yet, it appears rather curious that it did not think it appropriate to issue a notice to the appellant and directed the entire insurance amount to be paid to the complai .....

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..... on Act, 1986. In our opinion such a power must be held available to the Commission as a power incidental or ancillary to the substantive power conferred upon the Commission by the Act. Section 21 deals with the jurisdiction of the National Commission. In so far as relevant, it reads: 21. Jurisdiction of the National Commission. - Subject to the other provisions of this Act, the National Commission shall have jurisdiction, - (a) to entertain- (i) complaints where the values of the goods or services and compensation, if any, claimed exceeds rupees (twenty lakhs]; and . This provision has to be read along with Section 22 which clothes the Commission with the powers of a civil court specified in sub-sections (4),(5) and (6) of Sec .....

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..... to the judicial proceeding within the meaning of Secs. 193 and 228 of the Indian Penal Code (45 of 1860), and the District Forum shall be deemed of Sec. 195, and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974) [(6) Where the complainant is a consumer referred to in sub-clause (iv) of clause (b) of sub-section (1) of section 2, the provisions of rule 8 of Order I of the First Schedule to the Code of Civil Procedure, 1908 shall apply subject to the modification that every reference therein to a suit or decree shall be construed as a reference to a complaint or the order of the District Forum thereon]. 14. Finding of the District Forum.- (1) If, after the proceeding conducted under Sec. 13, the District Forum is satisf .....

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..... rson claim the same relief, simultaneously disputing each other's right to claim the said relief, the Commission has the necessary power to adjudicate the rival claims and decide the said dispute also. This power flows from an is incidental and ancillary to the substantive power conferred by Section 21 (a) (i) read with Section 22 which applies sub-sections (4) , (5) and (6) of Section 13 to the National Commission as well. It is well-settled that where a substantive power is conferred upon a court or tribunal, all incidental and ancillary powers necessary for an effective exercise of the substantive power have to be inferred. See Khyerbari Tea Company Limited Another v. State of Assam others [A.I.R. (1964) S.C. 925 at 935]. The rul .....

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