Court Affirms Compensation for Disabled Toddy Tapper, Emphasizing Equity and Justice
In a significant ruling, the Kerala High Court has upheld the Permanent Lok Adalat's decision to grant compensation to Balakrishnan K.M., a toddy tapper who sustained permanent disabilities due to an accident. The judgment, delivered by Justice Ziyad Rahman A.A., dismissed the writ petition filed by Star Health and Allied Insurance Company Limited, challenging the Lok Adalat's award of Rs. 7,50,000 as insurance benefit and Rs. 10,000 as costs to the respondent.
The dispute arose when Balakrishnan, insured under an Accident Care individual insurance policy, suffered severe injuries on May 28, 2021, while tapping toddy from a coconut tree. Despite the policy covering the period from July 6, 2020, to July 5, 2021, Star Health refused to entertain his claim, citing delay in submission beyond the stipulated 60-day period post-accident.
The Permanent Lok Adalat, constituted under Section 22B of the Legal Services Authorities Act, 1987, ruled in favor of Balakrishnan, emphasizing that procedural delays should not hinder genuine claims. The Adalat underscored principles of equity and justice, considering the substantial impact of the injuries, certified to result in 75% permanent disability.
Star Health contested the award, arguing that the claim process was circumvented, as no formal claim was lodged before the insurer. However, Justice Rahman observed that the Lok Adalat's decision adhered to the principles of natural justice and equity, aligning with the IRDAI Circular dated September 20, 2011, which restricts insurers from repudiating legitimate claims solely due to delayed intimation.
The High Court highlighted the limited scope of interference under Article 226 of the Constitution, which permits intervention only in cases of manifest injustice or flagrant violation of law. The judgment reiterated that the Permanent Lok Adalat's decisions, guided by natural justice, are final unless perverse or resulting in gross injustice.
Justice Rahman noted the welfare intent behind Chapter VIA of the Legal Services Authorities Act, promoting speedy and affordable justice for weaker sections, particularly in disputes involving public utility services. The court emphasized the Lok Adalat's role in transcending technical hurdles to safeguard vested rights, especially in cases with profound socio-economic implications.
Balakrishnan's plight, exacerbated by his financial vulnerability and severe incapacitation, epitomized the necessity for equitable relief. The judgment underscored the court's duty to uphold the respondent's right to a dignified life, as enshrined in Article 21 of the Constitution, while balancing corporate interests.
This ruling reaffirms the judiciary's commitment to ensuring justice is not thwarted by procedural rigidity, advocating for substantial justice in the face of technicality. The Kerala High Court's decision serves as a precedent in reinforcing the Lok Adalat's mandate to protect marginalized individuals against unjust corporate practices.
Bottom line:-
Permanent Lok Adalat, constituted under Section 22B of the Legal Services Authorities Act, 1987, is empowered to decide disputes on merits and is guided by principles of natural justice, equity, and fair play, irrespective of procedural technicalities under the CPC and Evidence Act.
Statutory provision(s): Legal Services Authorities Act, 1987 Section 22B, Constitution of India, 1950 Articles 226 and 21, IRDAI Circular dated 20.09.2011.
