Judgment :

Leave granted.

This appeal is directed against the judgment dated 15.1.2010 rendered by the learned Single Judge of the High Court of Gujarat at Ahmedabad in Special Civil Application No.9400 of 2006 by which the order dated 23.12.2005 passed by the Motor Accident Claims Tribunal (MACT) Bhuj, Kachchh in M.A.C.P. No.759/97 permitting the respondents, who had already obtained compensation under Section 163A of the Motor Vehicles Act 1988 (`the Act' for short), to proceed with the application filed under section 166 of the Motor Vehicles Act 1988, is affirmed. The respondents are the original claimants. On 17.6.97, the deceased viz. Kanji Keshavbhai Gadhvi was riding his two wheeler i.e. Luna. When he reached near IFFCO, the driver of taxi bearing No.GJ-12-C-9484 who was coming from the opposite direction dashed the taxi with the Luna as result of which Kanjibhai lost his life. Therefore, the respondents who are legal heirs of the deceased respondent filed MACP No.759 of 1997 under Section 166 of the Motor Vehicles Act against the driver and owner of the taxi as well as against the petitioner who is insurer of the taxi and claimed compensation of Rs.7,50,000/-. The respondents had thereafter filed an application at Exhibit 6 under section 163A of the Act and claimed compensation of Rs.3,93,500/- on the principle of no fault liability.

The Tribunal had partly allowed the application filed by the respondents under Section 163A of the Act and ordered the petitioner to pay a sum of Rs.2,65,500/- with 12% interest vide judgment dated 18.10.2000. The case of the petitioner is that the petitioner had deposited the said amount and the respondents have already withdrawn and invested the amount of compensation as directed by the Tribunal.

The present petitioner filed an application with a prayer that the application filed under Section 166 which was pending be rejected in view of the decision of this Court in Oriental Insurance Co. Ltd. Vs. Hansrajbhai V. Kodala & Ors. (2001) 5 SCC 175.

The Tribunal by order dated 25.6.2002 granted stay of further proceedings of the petition filed under Section 166 of the Act till further orders. In the meanwhile, the petitioner challenged the award passed by the Tribunal under Section 163A of the Act by filing First Appeal No.3019 of 2007. The appeal was dismissed on the ground of delay.

The respondents thereafter filed an application with a prayer that they be permitted to proceed with the petition filed under Section 166 of the Motor Vehicles Act and they were ready to give undertaking to give credit of the amount awarded to them as compensation in the claim petition filed under Section 163A of the Act. The Tribunal by an order dated 23.12.2005 permitted the respondents to proceed with the petition filed under Section 166 of the Act. The Tribunal also directed that amount already disbursed in favour of the respondents and invested by them, pursuant to the award made under Section 163A shall be adjusted to the final award to be passed under Section 166 of the Motor Vehicles Act. Feeling aggrieved, the petitioner preferred Special Civil Application No.9400 of 2006 before the High Court.

The learned Single judge of the High Court has rejected the same by judgment dated 15.1.2010 giving rise to the instant appeal.

This Court has heard the learned counsel for the parties.

This Court has perused the impugned judgment of the High Court. The reasons given by the High Court for upholding permission granted by the Tribunal, to the respondents to proceed further with the petition filed under Section 166 of the Act, read as under.

"After hearing and on perusal of the record and from the scheme of the Act, it is clear that proceedings under Sections 163A and 166 of the Act i.e. both proceedings are permissible. In my view, claimant can file both the proceedings and opt for either of proceedings. The only condition is that application for proceeding under section 166 should be filed before the award