1990 PLP 1931 (CLC)

I have heard Mr. AA. Ashary, learned counsel for the appellant in support of the appeal and Mr. M.Umer Qureshi, learned counsel for the respondent. I have gone through the impugned judgment and perused the R & P of the case with the assistance of the learned counsel for the parties. In order to appreciate the respective contentions of the learned counsel for the parties, it is necessary to reproduce provisions of sections 44‑A of the Act, which reads as follows:‑ "44‑A. Insurance Surveyors to hold certificates.‑‑(1) No person other than an insurance surveyor holding an appropriate certificate under this section shall after the expiry of six months from the commencement of the Insurance (Amendment) Act, 1958 undertake in Pakistan the surveying, assessment or adjustment of any loss in respect of general insurance business and no insurer shall pay any claim in respect of general insurance business transacted, by him in Pakistan unless the loss has been surveyed, assessed or adjusted as the case may be, by an insurance surveyor holding an appropriate certificate under this section: Provided that the provisions of this subsection shall not apply to such persons and to such losses as may be presrcibed. (2) ...................................................... (3) ...................................................... (4) ...................................................... (5) ...................................................... (6) ...................................................... (6‑A) ...................................................... (7) Where it is found that an insurance surveyor being an individual is or being a company or firm contains a director or partner who is suffering from any of the disqualifications mentioned in subsection (4) of Section 42, without prejudice to any other penalty to which he may be liable, the Controller shall and where it is proved to the satisfaction of the Controller that the insurance surveyor has:‑ (i) given a false report; or (ii) grossly overassessed any loss; or (iii) made an adjustment of loss in a grossly unjust manner, the Controller may cancel the certificate held by that insurance surveyor: Provided that in the event of cancellation of certificate under the discretionary powers of the Controller under this subsection the Central Government may, upon an application made to it in this behalf call for a report from the Controller and, after considering such report and hearing the applicant give such direction to the Controller as it may deem fit. (8) .......................................................... (9) .......................................................... The perusal of the provisions of the above section shows that no person other than an insurance surveyor holding an appropriate certificate shall undertake in Pakistan, the surveying assessment or adjustment of any loss in respect of general insurance business and no insurer shall pay any claim in respect of general insurance business transacted, by him in Pakistan, unless the loss has been surveyed, assessed or adjusted as the case may be, by an insurance surveyor holding an appropriate certificate under this section. Subsection (2) provides that an application for a certificate shall be made to the Controller of Insurance in the prescribed manner and be accompanied a prescribed fee which shall not be more than rupees fifty. Subsection (3) provides that the insurance surveyors may be classified into such classes or sub‑classes as the case may be. Subsection (4) provides that the Controller of Insurance or any person authorised by him in this behalf may call for such information or explanation as he may deem fit or ask the applicant to appear before him and on being satisfied that the applicant fulfils requirements as may be prescribed and is a fit to hold the certificate applied for, grant such certificate. Subsection (7) provides that where it is found that the insurance surveyor is suffering from any of disqualifications mentioned in subsection 4 of S.42 has given a false report or grossly over assessed any loss; or made an adjustment of loss in a grossly unjust manner, the Controller may cancel the certificate held by the surveyor. Under subsection (7) of section 44‑A the Controller may cancel the certificate if the case falls under any of clauses (i) to (iii) (that is) the insurance surveyor has (i) given a false report; or (ii) grossly overassessed any loss; (or) made an adjustment of loss in a grossly unjust manner. The Controller held an inquiry and after complying all the formalities found that the appellant had deliberately misused its insurance certificate. In that view of the matter he cancelled the certificate. The Tribunal on reappreciation of the evidence on the record held that the Controller of Insurance/respondent not only had given an opportunity to the appellant to explain his position, but also maintained complete record of hearing. In that view of the matter it found that all legal formalities, in letter and spirit were strictly followed. It held that the Controller had rightly cancelled the certificate. There is one more aspect of the case that the Controller of Insurance and the Insurance Appellate Tribunal have concurrently found on a fuller and detailed discussions of the oral and documentary evidences as well, that the appellant misused the certificate. This concurrent finding cannot be interfered with in this appeal when the authorities below have taken all the material evidences on record into consideration. It is not possible to accept the contention of Mr. Ashary that provisions of S‑44‑A of the Act are not attracted in the instant. The only provisions in the Act relating to cancellation of certificate are to be found in subsection (7) of section 44‑A of the Act. In the result, this Misc. Appeal fails and is 'dismissed but in the circumstances of the case, there will no order as to costs. AA./G‑205/K Appeal dismissed,