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1991 Supreme(Kar) 551

Karnataka High Court
ORIENTAL INSURANCE CO.LTD. - Appellant
Versus
SHIVA PRAKASH - Respondent
Decided On : 12-20-91
M.F.A. : 2406 of 1991

Advocates:
H.G.RAMESH, SAMPATH ANAND SHETTY

The main legal point established is that the Motor Accidents Claims Tribunal has the power to make appropriate orders regarding the deposits of the amounts awarded in favor of the claimants.

Headnote:

Insurance - Motor Vehicle Accident - Sections 110A, 151 CPC - Court discusses the power of the Motor Accidents Claims Tribunal to make appropriate orders regarding the deposits of the amounts awarded in favor of the claimants.

Fact of the Case:

The appeals were filed by the insurer of a bus involved in a fatal accident. The insurer argued that the Tribunal was not right in holding it liable for the award. The court found that the Tribunal was justified in its decision.

Finding of the Court:

The court found that the Tribunal has the power to make appropriate orders regarding the deposits of the amounts awarded in favor of the claimants.

Issues: The issues revolved around the liability of the insurer and the power of the Tribunal to make orders regarding the deposits of the awarded amounts.

Ratio Decidendi: The court held that the Motor Accidents Claims Tribunal has the power to make appropriate orders regarding the deposits of the amounts awarded in favor of the claimants.

Final Decision: The court overruled the decision of the learned Judge and held that the Tribunals have the power to make appropriate orders regarding the deposits of the amounts awarded in favor of the claimants and dismissed the appeals.

KRISHNAN, J.

( 1 ) THESE Appeals have been preferred by the insurer of the bus bearing registration No. MEU 4545 which was involved in an accident in an accident on 30-5-1989 on K. H. Road in Chikmagalur town, resulting in the death of one Siddegowda and another person Velu and injuries to one Ninge Gowda.

( 2 ) IT was urged by the learned Advocate for the insurer that the Tribunal was not right in fastening on his client, the liability to satisfy the Award. It was urged that there was breach of condition of the policy, in that, the vehicle had been entrusted by the insured to a person who was hot holding a valid licence and therefore the Tribunal was not justified in fastening the liability to satisfy the award on- the insurer. On facts we are satisfied that the Tribunal was justified in negativing the contention advanced by the insurer in this regard. It may be noticed that apart from the fact that the insurer has not established that there has been any breach of the condition of the policy, there was not even a plea taken by it to the effect that the insurer had entrusted the vehicle to a person who was not holding the licence. Therefore, we are satisfied that all these Appeals deserve to be dismissed.

( 3 ) HOWEVER, one important aspect relating to the deposit of the money payable to the minor claimants in the fatal accident cases was brought to our notice and it was pointed out that the Tribunal has held that no direction relating to deposit of shares payable to the minor petitioner, could be given by it in view of the Decision of this Court in malumbi vs ALBIN ABDUL and it was urged that the law declared in this regard in the said Decision requires a second thought. The learned Single Judge in Malumbi's case has held that the Claims tribunal in directing the amount to be applied in a particular manner viz. , to deposit in a Nationalised Bank is quite arbitrary and illegal and the reason for the said conclusion is as hereunder. "nowhere in the Act or the Rules framed thereunder it is said that the compensation awarded can be distributed and utilised in the manner which the Judge or the Tribunal desires. When the act is silent it is not the concern of the Courts to direct the amount to be deposited in a particular manner. Because when once compensation is awarded it is awarded for the loss caused to the family of the claimants and how it has to be spent or distributed or applied is the concern of the claimants and not the duty of the Courts. After all the duty of the Court is to see its dignity and decorum is maintained and not by giving direction that deposits to be made in. a nationalised Bank as by such an approach it may lead to create a sort of thinking in the mind of the litigant public that of late Courts have started apart from discharging their duties of dispensation of justice also acts mobilising the resources of some of the institutions. The Court shall also take into consideration compensation means to recompense, that is to make the aggrieved person feel otherwise for the loss caused earlier. Compensation shall not be equated to one of compulsion as the Tribunal has now done by directing the parties to deposit whatever compensation awarded in the nationalised Bank even against the need and desire of the claimant. Hence there is no other go but to say that the duty of the Court or the Tribunal while considering the application whether it is under Motor Vehicles Act or Land Acquisition Act is to quantify and award the compensation and not to direct the compensation amount awarded to be spent or utilised in a particular manner. Hence, the order under challenge is liable to be set aside. "it has to be seen whether this conclusion of the learned Single Judge requires reconsideration. One of the compelling reasons for the aforesaid conclusion by the learned single Judge is, that there is no provision in the Act or the Rules framed thereunder, enabling the court to direct the amount to be deposited in any particular











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