Case: Muralidhar Sarangi Vs. The New India Assurance Co

may be examined on merit. It is contended by the learned counsel for the appellant that the claim was covered by Section 1 of the Policy which provides, inter alia, as under :- "1. The Company will indemnify the Insured against loss or damage to the Motor Vehicle andor its accessories whilst thereon..............(c) by malicious act........................" 6. Learned counsel for the respondent, on the contrary, contended that the claim made by the appellant was not enforceable under the Policies in question on account of Provision (b) of endorsement No. IMT 21 which provides as under :- "(b) mutiny assuming the proportion of or amounting to popular rising, military rising, rebellion, revolution, insurrection, military or usurped power or any act of any person acting on behalf of or in connection with any organisation with activities directed towards the overthrow by force of the Government de jure or de facto or to the influence of it by terrorism or violence or by the direct or indirect consequence of the said occurrences." 7. While the State Commission held that the destruction of the two trucks at the hands of the Bodo terrorists would be covered by Clause (c) of condition No. 1 of the Policy as it was a "malicious act", the National Commission recorded the finding that the case would be governed by the Provision (b) of Endorsement No. IMT 21. A `malicious act, according to State Commission, would be an act prohibited by law, which is done with intention to cause loss to another. The act which resulted in the destruction of the trucks belonging to the appellant could have been treated to be a "malicious act" but having regard to the circumstances of this case, specially that the incident took place in an area which had already been declared to be a "disturbed area" within the meaning of the Armed Forces (Special Powers) Act, 1958 and where the provisions of TADA Act were enforced, such activity cannot be considered in isolation.8. Endorsement IMT 21, which has been reproduced above, consists of two distinct parts. The first part speaks of mutiny assuming the proportion of popular rising, military rising, rebellion, revolution, insurrection etc. The second part consists of : "Any act of any person acting on behalf of or in connection with any organisation with activities directed towards the overthrow by force of the Government de jure or de facto or to the influence of it by terrorism or violence or by the direct or indirect consequence of the said occurrences." 9. The second part thus contemplates individual acts, though, the acts may have been done on behalf of or in connection with any organisation or under the influence of it. Whether these acts of terrorism by Bodo activists are intended to overthrow the Government, de facto or de jure, by force, have not been established by direct evidence, but the series of acts resulting in the loss of life and property so as to compel the authorities to declare the whole area as "disturbed area" for the purpose of the Armed Forces (Special Powers) Act, 1958, as also to enforce the Terrorist and Disruptive Activities (Prevention) Act, 1987, definitely point out that not only the common people but also the Government, established by law, is intended to be overawed by acts of terrorism in an organised manner for and on behalf of a group which is basically responsible for such activities.10. The second part also speaks of the acts of "terrorism or violence". Terrorism, as ordinarily understood, means the act of terrorising. In Websters Comprehensive Dictionary, one of the meanings assigned to the word "terrorism" is that it means "unlawful acts of violence committed in an organised attempt to overthrow a Government". Sub-section (1) of Section 3 of TADA Act, 1987 provides as under :- "3. Punishment for terrorist acts. - (1) Whoever with intent to overawe the Government as by law established or to strike terror in people or any section of the people or to alienate any section of the people or to adversely affect the harmony amongst different sections of the people does any act or thing by using bombs, dynamite or other explosive substances or inflammable substances or fire arms or other lethal weapons or poisons or noxious gases or other chemicals or by any other substances (whether biological or otherwise) of a hazardous nature in such a manner as to cause, or as is likely to cause, death of, or injuries to, any person or persons or loss of, or damage to, or destruction of, property or disruption of any supplies or services essential to the life of the community, or detains any person and threatens to kill or injure such person in order to compel the Government or any other person to do or abstain from doing any act, commits a terrorist act." 11. The above are acts which are treated as terrorist acts and such acts are made punishable under Sub-section (2) with death or imprisonment for life etc. etc. The terrorist acts may be done with intent to "overawe" the Government as by law established or to strike terror in people or any section of the people or to alienate any section of the people and other acts specified therein.Disruptive activities have been set out in Section 4 of the Act which may not be enumerated here.12. When read in the light of the above statutory provisions as also the attending circumstances of this case, it becomes clear that Provision (b) of Endorsement IMT 21 of the Insurance Policies did not cover the risk complained of. The trucks were destroyed by act of terrorism and a driver of the truck was also shot dead. The National Commission was, therefore, fully justified in its conclusion that the respondent was not liable for the loss suffered by the appellant at the hands of Bodo activists who completely destroyed the trucks of the appellant by setting them on fire and killed one of the drivers.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]7. While the State Commission held that the destruction of the two trucks at the hands of the Bodo terrorists would be covered by Clause (c) of condition No. 1 of the Policy as it was a "malicious act", the National Commission recorded the finding that the case would be governed by the Provision (b) of Endorsement No. IMT 21. A `malicious act, according to State Commission, would be an act prohibited by law, which is done with intention to cause loss to another. The act which resulted in the destruction of the trucks belonging to the appellant could have been treated to be a "malicious act" but having regard to the circumstances of this case, specially that the incident took place in an area which had already been declared to be a "disturbed area" within the meaning of the Armed Forces (Special Powers) Act, 1958 and where the provisions of TADA Act were enforced, such activity cannot be considered in isolation.8. Endorsement IMT 21, which has been reproduced above, consists of two distinct parts. The first part speaks of mutiny assuming the proportion of popular rising, military rising, rebellion, revolution, insurrection etc.The second part thus contemplates individual acts, though, the acts may have been done on behalf of or in connection with any organisation or under the influence of it. Whether these acts of terrorism by Bodo activists are intended to overthrow the Government, de facto or de jure, by force, have not been established by direct evidence, but the series of acts resulting in the loss of life and property so as to compel the authorities to declare the whole area as "disturbed area" for the purpose of the Armed Forces (Special Powers) Act, 1958, as also to enforce the Terrorist and Disruptive Activities (Prevention) Act, 1987, definitely point out that not only the common people but also the Government, established by law, is intended to be overawed by acts of terrorism in an organised manner for and on behalf of a group which is basically responsible for such activities.10. The second part also speaks of the acts of "terrorism or violence". Terrorism, as ordinarily understood, means the act of terrorising. In Websters Comprehensive Dictionary, one of the meanings assigned to the word "terrorism" is that it means "unlawful acts of violence committed in an organised attempt to overthrow a Government".The above are acts which are treated as terrorist acts and such acts are made punishable under(2) with death or imprisonment for life etc. etc. The terrorist acts may be done with intent to "overawe" the Government as by law established or to strike terror in people or any section of the people or to alienate any section of the people and other acts specified therein.Disruptive activities have been set out in Section 4 of the Act which may not be enumerated here.12. When read in the light of the above statutory provisions as also the attending circumstances of this case, it becomes clear that Provision (b) of Endorsement IMT 21 of the Insurance Policies did not cover the risk complained of. The trucks were destroyed by act of terrorism and a driver of the truck was also shot dead. The National Commission was, therefore, fully justified in its conclusion that the respondent was not liable for the loss suffered by the appellant at the hands of Bodo activists who completely destroyed the trucks of the appellant by setting them on fire and killed one of the drivers.