2007(8) Supreme 25
Supreme Court of india
(From Bombay High Court)
Dr. Arijit pasayat & P. Sathasivam, JJ.
United India Insurance Company Limited — Petitioner
versus
Serjerao and Ors. — Respondents
Civil Appeal 5201 of 2007
(Arising out of S.L.P. (C) No.9417 of 2005)
With
C.A. No. 5202/2007 @ S.L.P.(C) No. 9418/2005
C.A. No. 5203/2007 @ S.L.P.(C) No. 9419/2005
C.A. No. 5204/2007 @ S.L.P.(C) No. 9420/2005
C.A. No. 5205/2007 @ S.L.P.(C) No. 9421/2005
C.A. No. 5207/2007 @ S.L.P.(C) No. 9422/2005 and
C.A. No. 5208/2007 @ S.L.P.(C) No. 9423/2005
Decided on : 14-11-2007
2007(8) Scale 77, 2007(7), Scales 753 relied upon.
Facts of the case:
Respondents traveling in trolley attached to a tractor as labourers suffered injuries as tractor with trolley in each case met with an accident herein in the instant case. Claim petitions along with application was filed u\s 140. An Order was passed by Additional District judge on principle of no fault liability. Plea of Insurance Company that it had no liability in respect of persons traveling in Trolley and owner of tractor was liable to pay compensation. Said plea was rejected by MACT. Appeals thereagainst were preferred u\s 173 of Act.
Findings of the Court :
The Court relying upon decision in case of Smt. Yallwwa & Ors. v. National Insurance Co. Ltd. and Anr held that even when objections are raised by the insurance company in regard to its liability, the Tribunal is required to render a decision upon issue, which would attain finality and, thus, the same would be an award within meaning of Section 173 of the Act. So far as question of liability regarding labourers traveling in trollies was concerned, matter was considered by this Court in Oriental Insurance company Ltd. v. Brij Mohan And Ors. and it was held that Insurance company had no liability. Impugned Order in each case was set aside and matters were remitted back to High Court to consider matter afresh.
Result : Appeals disposed of.
JUDGMENT
Dr. ARIJIT PASAYAT, J.—
1.Leave granted.
2.Challenge in these appeals is to the order passed by a learned Single Judge of the Bombay High Court, Aurangabad Bench dismissing the writ petitions filed by the appellant (described hereinafter as ‘the Insurance Company’). The controversy lies within a very narrow compass.
3.The respondents were travelling in the Trolly attached to a Tractor as labourers. They claimed to have suffered injuries because the Tractor with the Trolly in each case met with an accident. Petitions claiming compensation under the Motor Vehicles Act, 1988 (in short ‘the Act’) were filed along with application under Section 140 of the Act. Order was passed by the learned Additional District Judge and Ex-officio Member, Motor Accident Claims Tribunal, Latur (in short ‘the MACT’) on the principle of no fault liability. The Insurance Company took the stand that it had no liability in respect of the persons travelling in the Trolly and the owner of the Tractor is liable to pay compensation. This plea was rejected by the MACT. Appeal in terms of Section 173 of the Act in each case was preferred before the High Court. Learned Single Judge, prima-facie, was of the view that the appeal was not maintainable. Nevertheless, he referred the matter to the Division Bench, which, it appears referred it to a Full Bench. While the matter was pending consideration by the Full Bench, execution proceedings were filed. Therefore, writ petitions were filed before the High Court. The High Court, by the impugned order in each case, dismissed the writ petitions holding that though arguable questions were involved, the writ petitions did not deserve consideration.
4.In support of the appeals, learned counsel for the appellant-Insurance Company submitted that the appeals in terms of Section 173 of the Act were maintainable and in any event, the Insurance Company has no liability in respect of the persons travelling in trollies attached to the Tractors.
5.There is no appearance on behalf of the respondents when the matter was called.
6.So far as the question of maintainability aspect is concerned, the issue is concluded by a judgment of this Court in Smt. Yallwwa & Ors. v. National Insurance Co. Ltd. and Anr.1, (2007 (8) SCALE 77).
7.In paragraphs 16 to 19 of the judgment, it was observed as follows :
“16.The question which is required to be considered is what would be the meaning of the term award when such a contention is raised. Although in a given situation having regard to the liability of the owner of the vehicle, a claim Tribunal need not go into the question as to whether the owner of the vehicle in question was at fault or not, but determination of the liability of the insurance company, in our opinion, stands on a different footing. When a statutory liability has been imposed upon the owner, in our opinion, the same cannot extend the liability of an insurer to indemnify the owner, although in terms of the insurance policy or under the Act, it would not be liable therefor.
17.In a given case, the statutory liability of an insurance company, therefore, either may be nil or a sum lower than the amount specified under Section 140 of the Act. Thus, when a separate application is filed in terms of Section 140 of the Act, in terms of Section 168 thereof, an insurer has to be given a notice in which event, it goes without saying, it would be open to the insurance company to plead and prove that it is not liable at all.
18.Furthermore, it is not in dispute that there can be more than one award particularly when a sum paid may have to be adjusted from the final award. Keeping in view the provisions of Section 168 of the Act, there cannot be any doubt whatsoever that an award for enforcing the right under Section 140 of the Act is also required to be passed under Section 168 only after the parties concerned have filed their pleadings and have been given a reasonable opportunity of being heard. A Claims Tribunal, thus, must be satisfied tha
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.