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Whether Insurance company can reject the claim if the vehicle owner has not paid the authorization fee to obtain national permit as on the date of loss?

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    Shubham Budhiraja [1] A took an insurance for its truck operating in the state of Bihar and outstation. During the course of insurance period, the truck caught fire on account of short circuit. The Insurance company repudiated the claim on the ground that vehicle was not having national permit as on date of loss because authorization fee was not paid. The State Commission allowed the claim basis the Nitin Khandelwal case and directed to settle the claim on non-standard basis. The Hon’ble NCDRC in appeal set aside the order basis that Nitin Khandelwal does not apply because that was a theft case whereas this is a fire accident case. The Hon’ble Supreme Court held as under [2] :   1.     The authorization fee was required to be paid only when the truck was moving out of State of Bihar as it was registered in the State of Bihar and the truck caught fire on account of short-circuit on 08.06.2014 in the State of Bihar itself and, therefore, insuran...

Can a Partner sue another partner for recovery of money when firm is unregistered?

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  Shubham Budhiraja [1] A and B entered into a partnership through an unregistered partnership deed. A filed a suit for recovery against B. The Trial Court held suit to be maintainable but HC reversed the findings. The Hon’ble Supreme Court held as under: [2]   1.     Section 69 is mandatory in character and a suit instituted by a plaintiff in respect of a right which was vested in him by virtue of a contract and entered into in his capacity as a partner of a partnership firm, would be void, if such a firm was unregistered.   2.     Section 69(1) prohibits a suit amongst the partners of an unregistered partnership firm, for the enforcement of a right either arising from a contract or conferred by the Act, unless the suit amongst the partners is in the nature of dissolution of the partnership firm and/or rendition of accounts. Section 69(2) prohibits the institution of a suit by an unregistered firm against third persons for the en...

Test/ basis for seeking exemption from the mandate of pre-suit mediation in a commercial suit?

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    Shubham Budhiraja [1]   A and B entered into an agreement regarding supply of kitchen equipment’s. A filed a suit for recovery against B for supplying inferior quality of goods at higher prices. During the suit, A filed an application seeking exemption from undergoing pre-suit mediation on the ground that A is in need of money and any delay would cause irreparable harm to A. The Hon’ble Delhi High Court rejected the A’s application and held as under [2] :   1.     It is well settled that exemption from invoking pre-litigation mediation can be granted only when very urgent reliefs are sought by the Plaintiff and it is demonstrated that unless urgent reliefs are not granted the suit itself would become infructuous.   2.     The Plaintiff has to demonstrate that if the parties are sent to pre-litigation mediation, then the Defendant will take steps which will make the Suit infructuous.   3.   ...