Case Details

  • Case Name / Petition: SLP(C) No.5582 of 2023 (Special Leave to Appeal) and C.A. No.6865 of 2026.
  • Parties: Oriental Insurance Co. Ltd (Petitioner) vs. Tuni Pati & Ors (Respondents); National Insurance Company Limited (Petitioner) vs. K. Saravanan & Ors (Respondents).
  • Court / Authority: Supreme Court of India.
  • Order / Judgment No.: SLP(C) No.5582 of 2023; C.A. No.6865 of 2026.
  • Date of Order: 26‑05‑2026.
  • Period of Violation / Dispute: Payment of Rs 2,75,780.82 with 6% interest accruing from 18‑04‑2023.

Parties Involved

  • Petitioners: Oriental Insurance Co. Ltd; National Insurance Company Limited.
  • Respondents: Tuni Pati & Ors; K. Saravanan & Ors; multiple insurance companies (e.g., Axis Max Life Insurance Ltd., ICICI Prudential Ltd., Kotak Mahindra Ltd., etc.) and various State representatives (Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Gujarat, Jharkhand, Meghalaya, etc.).
  • Counsel for Petitioners: Mr. H. Chandra Sekhar, Mr. Manu Luv Shahalia, Ms. Manjeet Chawla, Ms. Jyoti, Ms. Usha Pant Kukreti.
  • Counsel for Respondents: Extensive list of senior advocates representing each insurance company and state; includes Mr. Goutham Shivshankar, Ms. Sharanya, Mr. Shivam Singh, etc.
  • Judges: Hon'ble Mr. Justice Ahsanuddin Amanullah and Hon'ble Mr. Justice Prasanna B. Varale.

Issues / Allegations / Violations

  • The Court previously ordered Oriental Insurance Co. Ltd to pay the remaining amount of Rs 2,75,780.82 plus 6% interest from 18‑04‑2023 to respondents No.1‑3, with a two‑week compliance window ending 06‑04‑2026.
  • The petitioner‑Insurance Company has not complied with the payment order as of the hearing date.
  • Lack of communication to respondents regarding implementation of the order.
  • Potential non‑appearance or undisclosed appearance of insurance companies before the Court.

Findings & Observations

  • The Court emphasizes that it is the duty of the petitioner to keep respondents informed about implementation of the payment order.
  • Non‑compliance will attract contempt proceedings against the Chairman & Managing Director (CMD) of the petitioner‑Insurance Company.
  • The Court notes that the respondents‑Insurance Companies must file detailed counter‑affidavits reflecting observations from prior orders, personally affirmed by their CMDs or MDs.
  • The Court warns that any insurance company appearing without disclosing its name will face suo motu contempt.
  • CMDs of companies that do not enter appearance must be personally present on the next listing to explain the omission.

Penalties / Settlements / Directions

1. Payment Direction: Oriental Insurance Co. Ltd must pay Rs 2,75,780.82 plus 6% interest from 18‑04‑2023 to respondents No.1‑3 within two weeks of the order dated 06‑04‑2026.

2. Contempt Warning: Failure to comply will lead to contempt proceedings against the CMD of the petitioner‑Insurance Company.

3. Affidavit Filing: All respondents‑Insurance Companies must file detailed counter‑affidavits, personally affirmed by CMDs/MDs, no later than 10‑07‑2026.

4. Appearance Requirement: All parties must disclose the name of the insurance company they represent; otherwise, suo motu contempt will be issued.

5. CMD Presence: CMDs of companies not entering appearance must be personally present on the next listing date to provide a show‑cause explanation.

Corrective Actions & Future Obligations

  • Petitioner‑Insurance Company: Must inform respondents of payment implementation and ensure payment is made within the stipulated deadline.
  • Respondent‑Insurance Companies: Prepare and submit counter‑affidavits with personal affirmation by senior officials by 10‑07‑2026.
  • All Insurance Companies: Appear before the Court disclosing their identity; otherwise face contempt.
  • CMDs of Non‑appearing Companies: Must attend the next listing and explain non‑appearance.

Final Ruling & Enforcement

  • The Court orders payment of the specified amount with interest by the deadline 06‑04‑2026.
  • Contempt proceedings will be initiated against the CMD of Oriental Insurance Co. Ltd if payment is not made.
  • Counter‑affidavits to be filed by respondents by 10‑07‑2026, personally affirmed.
  • Both matters (SLP(C) No.5582/2023 and C.A. No.6865/2026) are listed for hearing on 30‑07‑2026.
  • The Court master SAPNA BISHT and ANJALI PANWAR recorded the order.