SUPREME COURT OF INDIA
H.L. DATTU, M.Y. IQBAL, JJ.
BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LTD. - Appellant
Vs.
KAMLA SEN — Respondent
Civil Appeal No. 9427 of 2013
Decided on : 23-10-2013
Motor Vehicles Act, 1988 - Section 170 –- Challenge award of Motor Accidents – Claim of compensation - Appeal by special leave is directed against judgment and order passed by High Court of Judicature at Jabalpur Madhya Pradesh High Court has dismissed appeal of appellant on ground that since it had failed to move an application Section of Motor Vehicles Act it was not open to appellant to challenge award of Motor Accidents Claim Tribunal in Claim Case – Held, Where insurer is party respondent either on account of being impleaded as party by Tribunal Section or being imp leaded as a party respondent by claimants in claim petition voluntarily it will be entitled to contest matter by raising all grounds without being restricted to grounds available Section of Act - Claim petition is maintainable against owner and driver without impleading insurer as party - When statutory notice is issued Section by Tribunal it is clear that such notice is issued not to implead insurer as party respondent but merely to put it on notice that claim has been made in regard to policy issued by it and that it will have to bear liability as and when an award is made in regard to such claim - Require that it should be impleaded as party-respondent - But it can be made a party-respondent either by claimants voluntarily in claim petition or by direction of Tribunal Section of Act - Whatever be reason or ground for insurer being impleaded as party once it is party respondent it can raise all contentions that are available to resist claim - Following observations made in aforesaid decision Accordingly while setting aside impugned judgment and order passed by High Court remand matter back to High Court for reconsideration as per law - Ordered accordingly
ORDER :
H.L. Dattu, M.Y. Iqbal, JJ.
Leave granted.
2. This appeal by special leave is directed against the judgment and order passed by the High Court of Judicature at Jabalpur, Madhya Pradesh in M.A. No. 4823 of 2008, dated 01.05.2009, whereby the High Court has dismissed the appeal of the appellant on the ground that since it had failed to move an application under Section 170 of the Motor Vehicles Act, 1988 (for short, 'the Act'), it was not open to the appellant to challenge the award of the Motor Accidents Claim Tribunal, Hoshangabad (for short, 'the Tribunal') in Claim Case No. 21 of 2008, dated 28.07.2008, except on grounds provided under Section 149 of the Act and therefore upheld the quantum of compensation as awarded by the Tribunal.
3. We have heard learned counsel for the parties to the lis.
4. The issues raised in this appeal, in our view, are no more res integra, in view of the decision of this Court in the case of United Insurance Co. Ltd. v. Shila Datta & Ors, (2011) 10 SCC 509. Relevant paragraphs are quoted hereunder:
"19. Therefore, where the insurer is a party-respondent, either on account of being impleaded as a party by the Tribunal under Section 170 or being impleaded as a party-respondent by the claimants in the claim petition voluntarily, it will be entitled to contest the matter by raising all grounds, without being restricted to the grounds available under Section 149 (2) of the Act. The claim petition is maintainable against the owner and driver without impleading the insurer as a party.
20. When a statutory notice is issued under Section 149 (2) by the Tribunal, it is clear that such notice is issued not to implead the insurer as a party-respondent but merely to put it on notice that a claim has been made in regard to a policy issued by it and that it will have to bear the liability as and when an award is made in regard to such claim. Therefore, it cannot, as of right, require that it should be impleaded as a party-respondent. But it can, however, be made a party-respondent either by the claimants voluntarily in the claim petition or by the direction of the Tribunal under Section 170 of the Act. Whatever be the reason or ground for the insurer being impleaded as a party, once it is a party- respondent, it can raise all contentions that are available to resist the claim."
5. Following the observations made in the aforesaid decision, this appeal is disposed of. Accordingly while setting aside the impugned judgment and order passed by the High Court we remand the matter back to the High Court for reconsideration as per law.
6. We request the High Court to restore the appeal to its file and decide the same on merits and in accordance with law after issuing appropriate notice to the parties to the lis.
Ordered accordingly.
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