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2024 Supreme(Cal) 427

IN THE HIGH COURT AT CALCUTTA
SUBHENDU SAMANTA, J.
New India Assurance Co. Ltd. – Appellant
Versus
Bappa Ali Khan & Anr. – Respondents
FMAT (MV) 316 of 2022 With IA No.: CAN/1/2022
Decided on : 05-03-2024

Advocates:
Advocate Appeared:
For the Appellants : Mr. Rajdeep Bhattacharyya, Adv. Mr. Arpayan Mukherjee, Adv. Mr. Debasish Banerjee, Adv.
For the Respondent: Mr. L.M. Ghosh, Adv.

The main legal point established in the judgment is that the Insurance Company cannot contest a claim on grounds available to the insured or any other person against whom a claim has been made, unless permitted by the Tribunal, as per the provisions of the M.V. Act.

Headnote:

Delay - Motor Accident Claims - M.V. Act Section 163-A - Section 170 - Section 149(2) - The court discussed the provisions of Section 170 and 149(2) of the M.V. Act and their interpretations. The court emphasized that unless an order is passed by the Tribunal permitting the insurer to avail the grounds available to an insured or any other person against whom a claim has been made, it is not permissible for the insurer to contest the claim on those grounds. The court also highlighted the interplay between Sections 149, 170, and 173 of the M.V. Act.

Fact of the Case:

The appeal was filed against the judgment and award passed by the Motor Accident Claims Tribunal in a case involving a road traffic accident resulting in serious injuries to the victim.

Finding of the Court:

The court found that the Insurance Company was prevented by sufficient cause to contest the matter before the tribunal, but emphasized that the Insurance Company's appeal was not meritorious based on the legal principles established by the Supreme Court.

Issues: Delay in appeal, contesting the matter by the Insurance Company, liability to pay compensation, and the availability of defense under the statute.

Ratio Decidendi: The court's decision was based on the interpretation of the provisions of the M.V. Act, specifically Sections 170 and 149(2), and the legal principles established by the Supreme Court in Nicolletta Rohtagi and Josphine James cases.

Final Decision: The appeal was disposed of, and the Insurance Company was directed to disburse the awarded sum to the claimant. The court also directed the office of the learned tribunal to act upon the certified copy of the order to receive the deficit Court fees, if any.

JUDGMENT :

Subhendu Samanta, J.

1. Delay in preferring the instant appeal is condoned.

2. The instant appeal has been preferred against the judgment and award dated 15.07.2017 passed by the learned Judge, Motor Accident Claims Tribunal, ADJ, 14th Court, Alipore, 24-Parganas (South), in MAC Case No. 44 of 2006.

3. The present respondent No. 1 injured in a road traffic accident on 25.02.2003 by rash and negligent driving of bus bearing No.WB/04/4901 by which the victim received serious fracture injuries and became permanent partial disable.

4. The respondent No. 1 filed an application for compensation under Section 163-A of the M.V. Act before the learned tribunal.

5. Owner did not contest the matter before the learned tribunal.

6. The Insurance Company i.e. the present appellant though appeared initially but subsequently did not contest the matter by filling written statement. Accordingly, the case was heard ex-parte.

7. After hearing the parties and after receiving the evidences the learned tribunal has awarded an amounting to Rs.4,23,200/-in favour of the claimants and directed the Insurance Company to pay the compensation. Being aggrieved by and dissatisfied with the said award the instant appeal has been preferred.

8. Learned advocate for the appellant submits that this is an ex-parte order passed by the learned tribunal which can be very well challenged in this appeal. Mr. Rajdeep Bhattacharya, learned advocate appearing on behalf of the appellant further argued that the Insurance Company was prevented by sufficient cause to contest the matter before the learned tribunal so to determine the entire matter the instant case be remanded back to the learned tribunal by giving an opportunity to the Insurance Company to contest the matter.

9. In support of his submission he cited a decision of Hon’ble Allahabad High Court reported in National Insurance Co. Ltd. Vs. Smt. Jairani & Ors reported in (2010) 4 SCC 252. By citing the observation of the Division Bench of Allahabad High Court Mr. Bhattacharya learned advocate appearing on behalf of the Insurance Company submits that on the similar set of facts the Division Bench of Hon’ble Allahabad High Court has remanded the matter back before the learned Tribunal to re-hear the case in presence of the insurance Company. He referred the paragraphs 9, 17 & 18 in support of his submission.

    “9. The decision in Nicolletta Rohtagi’s case had been followed in National Insurance Co. Ltd. Vs. Mastan & Another,(2006) 2 SCC 641; Bijoy Kumar Dugar Vs. Bidyadhar Dutta and Others,(2006) 3 SCC 242; Sadhana Lodh Vs. National Insurance Company Ltd, and Another, (2003) 3 SCC 524 and United India Insurance Co. Ltd. Vs. Jyotsnaben Sudhirbhai Patel and Others, (2003) 7 SCC 212. The Apex Court in Jyotsnaben Sudhirbhai Patel’s case has laid emphasis that the Tribunal while deciding application u/s 170 of the Act must record reasons. From these decisions the scope of Section 170 stands clearly explained. The Insurance Company can file appeal u/s 173(1) on all the grounds which are available to the owner of the vehicle and the grounds mentioned in Section 149(2) of the Act if the application u/s 170 had been allowed by the Tribunal. However, if the application u/s 170 had been rejected by the Tribunal then the insurance company can maintain the appeal only on the grounds available u/s 149(2) of the Act.

17. The question still is whether where no order is passed by the Tribunal on an application u/s 170, can it be challenged in an appeal u/s 173(1) of the Act? It is true that an appeal u/s 173(1) of the Act lies only against the award of the Motor Accident Claims Tribunal but if the award is a nullity it can be challenged in an appeal u/s 173(1) of the Act and the appeal would be maintainable. The decision of the Apex Court in Bhanu Kumar Jain Vs. Archana Kumar and Another, (2005) 1 SCC 787 would apply and the insurance company would not be estopped from raising the question that the award of the Tribunal is a nullity in a

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