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2006 Supreme(Bom) 630

(ORISSA HIGH COURT) (FULL BENCH)
B. P. DAS, L. MOHAPATRA & A. K. SAMANTRAY, JJ.
M/s. National Insurance Co. Ltd. - Appellant
Versus
Panibudi Chulia & Ors. - Respondent
Misc. Appeal No.516 of 1998
Decided on 18th April, 2006
Advocates appeared
M/s. N.K. MISHRA, S. MISHRA, S.K. MISHRA and M. RATH, for Appellant.
M/s. P.K. NAYAK, R.P. MISHRA, S.K. MOHAPATRA and SIDHARTHA MISHRA, for Respondent.

Headnote:Workmen’s Compensation Act, 1923 - Section 3 - Motor Vehicles Act, 1988, Section 149 - Claim for compensation. - In absence of provision alike Section 149 of M.V. Act the Commissioner for workman compensation cannot be directed to determine he issue between the insurer and the insured regarding allegation of violation of policy condition and to proceed for recovery of amount so paid to the third party insured.

L. MOHAPATRA, J.: - This appeal arises out of an A ward passed by the Commissioner for Workmen's Compensation. The Full Bench is called upon to answer the reference made by the Hon’ble Single Judge on the following issue:

"Whether in absence of a provision alike Section 149 of the M.V. Act, 1988 the Commissioner for Workmen's Compensation cannot be directed to determine the issue between the insurer and the insured regarding allegation of violation of policy conditions and to proceed for recovery of the amount so paid to the third party from the insured."

2. Before answering the reference it is necessary to refer to the facts and law involved in the case. Claimants are the legal heirs of deceased Sananda Chulia. Said Sananda Chulia was working as a driver under one Bhimsen Behera in his trekker bearing registration No.OR - 15 - B - 0914. On 12 - 1 - 1997 while the deceased was driving the aforesaid vehicle, met with an accident near Atabira, as a result of which he sustained bodily injuries and ultimately succumbed to the injuries. Owner of the offending vehicle having refused to pay compensation, the claimants approached the Commissioner for Workmen's Compensation, Sambalpur Division in W. C. Case No.4 of 1997. Before the Commissioner for Workmen's Compensation the owner of the vehicle filed written statement admitting employment of.' deceased under him as a driver in the aforesaid ". vehicle, the accident and the resultant injuries I as well as death arising out of the accident. 1be appellant before this Court filed a separate written statement admitting the fact that the vehicle had been insured with it. However, the appellant resisted the claim on the ground that the deceased did not have a valid driving licence on the date of accident and therefore the insurance company cannot be saddled with the liability. The Commissioner, Workmen's Compensation, however, on examination of the evidence available on record held that the deceased had a valid driving licence and accordingly saddled the liability on the appellant.

3. In appeal before this Court the very same ground was taken by the appellant. Since the existence of a valid policy was admitted, learned counsel for the appellant argued before the Hon'ble Single Judge that in view of a decision of this Court rendered by a Division Bench in a Letters Patent Appeal in the case of Oriental Insurance Co. Ltd. Vs. Akadasi Das, reported in 96 (2003) CLT 126 the matter should be remitted back to the Commissioner for determining the issue as to whether any of the conditions in the policy had been violated by the insured. It was further argued that in the event it is found that there is any violation of the conditions stipulated in the policy by the insured, even if compensation is directed to be paid by the insurer, the same should be reimbursed by the insured to the insurer. The decision of the Apex Court in the case of New India Assurance Co. Shimla Vs. Kamla, reported in AIR 2001 SC 1419 was also brought to the notice of the Hon'ble Single Judge. The Hon'ble Single Judge in the referral order also referred to another decision of the Apex Court in the case of United India Insurance Company Ltd. Vs. Lehru, reported in AIR 2003 SC 1292 : [2003(3) ALL MR (S.C.) 708] and on examination of Section 149 of the Motor Vehicles Act, 1988 made reference to a larger Bench and accordingly this matter has come before this Bench to answer the reference.

4. Shri. N. K. Mishra, learned counsel for the appellant drew attention of the Court to the decision rendered by a Division Bench of this Court in a Letters Patent Appeal which is the basis for this reference. In the said case both the deceased persons were going in a truck as helper and coolie from Marsaghai to Chandikhole. On the way the truck collided with a mini truck as a result of which both the deceased persons sustained injuries and died subsequently. Both of them having sustained injury in the accident in course of employment
















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