SupremeToday Landscape Ad
Back
Next
Headnote Court Copy Facts Arguments Court observation Judicial Analysis Case Map Category Hierarchy Table of Content
Listen Article Pause Article
judgment-img

2006 Supreme(Kar) 669

IN THE HIGH COURT OF KARNATAKA AT BAN GALORE
D. V. SHYLENDRA KUMAR, J.
NEW INDIA ASSURANCE COMPANY LIMITED, BAN GALORE - Petitioner.
Versus
NAZEER AHMED AND ANOTHER - Respondent.
Writ Petition No. 7999 of 2006 (GM-AC).
Decided on 31st August, 2006

Subject

Insurance Law - Motor Vehicle Insurance

Act Referred

MOTOR VEHICLES ACT : S.149

Headnote

Code of Civil Procedure - Section 151 - Stay of Award of MACT - Stay of disbursement of amount deposited by insurer as there was joint liability till owner of vehicle furnish security -maintainability of application - Held, such application is frivolous and cantankerous. [D.V. Shylendra Kumar, J.]: Insurance Company had deposited the amount after passing of the award. The Insurance Company had filed I.A.I for stay of release of the awarded amount pending furnishing of security by the owner of the vehicle. The owner was not before the Tribunal either earlier or then. If the owner had not appeared and contested the claim, and the Insurance Company had not even called upon the owner to make good its amount, it is not the function of the Tribunal to ensure that in favour of the petitioner - Insurance Company. It is conceded by Sri. Seetharama Rao, learned counsel for the petitioner, that even a copy of the application filed before the Tribunal had not been served on the owner of the vehicle. In a situation of this nature when the owner of vehicle had not been called upon to reimburse the amount to the Insurance Company and had not even been put on notice about such requirement and when application for stay had not been brought to its notice it can only amount that the application is one in the nature for stalling the release of the amount in favour of the petitioner - Insurance Company. In a situation of this nature the application has been rightly rejected by the Tribunal.

       Cases Referred: 2004 AIR SCW 212; 2000 AIR SCW 5259; 2003 AIR SCW 513.

       Motor Vehicles Act - Section 166 - Stay Award of MACT - Stay of disbursement of amount deposited by insurer as there was joint liability till owner of vehicle furnish security - Maintainability of application - Held, such application is frivolous and cantankerous. See Code of Civil Procedure -Section 151.

       Cases Referred: 2004 AIR SCW 212; 2000 AIR SCW 5259; 2003 AIR SCW 513.

       Insurance Law - Award of tribunal - Stay of disbursement of amount deposited - If proper.

       Cases Referred: 2004 AIR SCW 212; 2000 AIR SCW 5259; 2003 AIR SCW 513.

       Motor Accident Claims-Principles- Stay Award of MACT-Stay of disbursement of amount deposited by insurer as there was joint liability till owner of vehicle furnishes security-maintainability of application-Held, such application is frivolous and Cantankerous. See Code of Civil Procedure -Section 151.

       Cases Referred: 2004 AIR SCW 212; 2000 AIR SCW 5259; 2003 AIR SCW 513.

       Motor Accident Claims-Principles- Stay Award of MACT-Stay of disbursement of amount deposited by insurer as there was joint liability till owner of vehicle furnishes security-maintainability of application-Held, such application is frivolous and Cantankerous. See Code of Civil Procedure -Section 151.

       Cases Referred: 2004 AIR SCW 212; 2000 AIR SCW 5259; 2003 AIR SCW 513.

       Motor Accident Claims-Principles- Stay Award of MACT-Stay of disbursement of amount deposited by insurer as there was joint liability till owner of vehicle furnishes security-maintainability of application-Held, such application is frivolous and Cantankerous. See Code of Civil Procedure -Section 151.

       Cases Referred: 2004 AIR SCW 212; 2000 AIR SCW 5259; 2003 AIR SCW 513.

Advocates appeared
Sri B.C. Seetharama Rao, Advocate for Petitioner;
Smt. Srividya for Sri T.N. Viswanatha, Advocate for Caveator-Respondent-l.

ORDER

Writ petition is by an Insurance Company, who was a party to a claim application before the Motor Accidents Claims Tribunal on the file of Court of Small Causes, Bangalore City.

2. The claim application of an injured in the accident involving a motor vehicle covered by a policy issued by the petitioner-Insurance Company came to be allowed in terms of the award dated 18-5-2005 passed in M.V.C. No. 4527 of2005.

3. It appears the petitioner-Company had taken the defence that the Insurance Company was not liable to indemnify the owner of the vehicle as the owner who had taken out the policy had committed certain breaches of the conditions of the policy.

4. Be that as it may, the Tribunal observing that in terms of the decision of the Supreme Court it was open to the Insurance Company to recover the amount from the owner as indicated in the judgment of the Supreme Court and proceeded to pass the award.

5. The claimants proceeded to execution of the award by filing Execution Petition No. 390 of 2006. It is in this execution proceedings it appears the petitioner-Insurance Company filed LA. Nos. I and II praying for staying the release of the award amount to the petitioner in the claim petition, which had been deposited by it till the owner of the vehicle i.e., judgment debtor furnishes security for the recovery of the amount by the Insurance Company from such owner as the Insurance Company was entitled to recover such amount from the owner in terms of the decision of the Supreme Court in the case of Oriental Insurance Company Limited v Nanjappan and Othersl.

6. The application before the Executing Court was opposed by the claimant-judgment debtor. It was contended that execution of the award amount cannot be stalled at the instance of the petitioner-Insurance Company for the purpose of passing certain orders on the application filed by the petitioner as it was a matter inter se between the petitioner-Insurance Company and the owner of the vehicle. In the light of such version the Executing Court found it proper and rejected the applications for staying the release of the award amount and to direct the owner to provide security to the Insurance Company to its satisfaction in respect of the amount of award observing as under:

"8. The Counsel for the 1st petitioner (decree-holder) mainly relying on the decision of the Hon'ble Supreme Court referred above, it is argued that for the purpose recovering the amount from the insured, the insurer shall not be required to file proceeding, it may required to file recovery proceedings against the insured, before the concerned Executing Court. In case of default it is open to the Executing Court to direct realisation by disposal of securities to be furnished or from other property or properties of owner of the vehicle, the insured. Nowhere in the judgment of the Hon'ble Supreme Court, it is stated that the amount deposited shall not be paid to the claimant if insured failed to furnishes securities for the satisfaction of the amount, due to the insurer. Moreover, Executing Court cannot go behind the decree. In the decree, it is stated that right of liberty to recovery given to first respondent after depositing the amount as per the award and no decree was passed against claimant-respondent. Moreover the scope of Section 147 was not brought to the notice of Hon'ble Supreme Court in the decision referred above with due respect to the decision above said decision not applicable to the facts of this case. So, this petition is filed against wrong person and there was no decree against claimant. Hence, I answer point for consideration in the negatively. Accordingly, I pass the following:

ORDER

LA. No. I filed under Section 151 of the CPC, to say the release of the award amount is rejected and LA. No. 2 filed under Section 151 of the CPC to vacate the stay order dated 27-3-2006 by respondent is allowed. However, if the amount released, the purpose of this petition will be defeated. So, in the interest of jus













































1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top