1. Appeal against refusal of stay on a Motor Vehicles Claims tribunal award pending an appeal by the insurer. (Para 1 )
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1998 Supreme(SC) 673
SUPREME COURT OF INDIA
A.P.Misra : G.B.Pattanaik
United India Insurance Company Limited
Versus
Jagdish Singh
Case No. : 9130 of 1996
Date of Decision : 7/22/98
The insurer must pay the statutory no-fault liability amount to claimants as a prerequisite for obtaining a stay on the remaining balance of a compensation award during the pendency of an appeal.
Headnote:(A) Motor Vehicles Act - No fault liability - In an appeal against a compensation award where the insurer contests liability, the statutory amount payable under no-fault liability must be paid to the claimants - There is no justification for withholding the no-fault liability amount while the appeal is pending.
Facts of the case:
An insurer challenged a compensation award granted by a claims tribunal, contending that it was not liable. The High Court refused to grant a stay on the payment of the award. The insurer then approached the higher court seeking a stay on the payment while the appeal was pending.
Findings of Court:
The court found that since a specific sum is payable under the statute for no-fault liability, the insurer is obligated to pay this amount regardless of the contest over overall liability.
Issues: Whether the insurer is required to pay the entire awarded amount, a portion of it, or no amount at all during the pendency of an appeal.
Ratio Decidendi: The statutory provision for no-fault liability creates an immediate obligation to pay the specified amount. Therefore, the stay on the balance of the award can be granted only upon the payment of the no-fault liability amount.
Result: Appeal allowed.
Legal Category Hierarchy
Table of Contents
2. Insurer contends total lack of liability for the awarded compensation. (Para 1 )
3. Statutory no-fault liability is payable regardless of the insurer's contention regarding overall liability. (Para 1 )
4. Statutory no-fault liability must be paid even when an insurer challenges overall liability in a pending appeal. (Para 1 )
5. Appeal allowed; insurer directed to pay the statutory no-fault liability amount to obtain a stay on the balance. (Para 1 )
6. Is an insurer required to pay any amount while an appeal against a Motor Vehicles Claims tribunal award is pending?
Yes, the insurer is required to pay the statutory amount designated for no-fault liability, as there is no justification for withholding this specific statutory payment. (Para 1 )
7. What is the consequence of failing to pay the statutory no-fault liability amount within the court-mandated timeframe?
If the statutory no-fault liability amount is not paid within the specified period, the order of stay on the balance of the award shall stand vacated. (Para 1 )
(1) THIS appeal is directed against the order of the Punjab and Haryana High court refusing to grant stay while the appeal filed by the insurer is pending before it. The Motor Vehicles Claims tribunal has awarded compensation and the insurer has filed the appeal contending that the insurer will not be liable at all. It is not necessary for us to go into the merits of the said contention which will be decided in the pending appeal, but the question that arises for consideration is whether at this stage while the appeal is pending, the insurer would be called upon to pay the entire amount awarded or a part of it. Admittedly, under the Statute a sum of Rs. 25,000.00 is payable for no fault liability. There is no justification for the insurer not being paying the said amount. In view of the stand taken by the insurer in the pending appeal to the effect that the insurer will not be liable at all and taking the statutory provisions into consideration we modify the impugned interim order of the High Court and direct that. the appellant shall pay to the claimants a sum of Rs. 25,000.00 within four weeks from today and on such payment be made the balance amount would remain stayed till the disposal of the appeal by the High court. We make it clear that if this amount of Rs. 25,000.00 is not paid within four weeks from today, the order of stay shall stand vacated. This appeal is allowed accordingly with no order as to costs.
