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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Saddam Husain - Appellant
Versus
Ram Prasad - Respondent
CM (M) 81 of 2021
Decided On : 09-03-2021




A litigant should not suffer for their lawyer's mistake, and claims can be filed in jurisdictions where the insurance company operates, facilitating access to justice for victims.

Headnote:(A) Article 227 of the Constitution of India - Jurisdiction issues - The Court has set aside the MACT's refusal to restore the claim petition, affirming that legal mistakes by counsel should not disadvantage clients. The insurance company cannot claim prejudice due to the withdrawal of the petition based on erroneous legal advice. (Paras 10, 11, 12)

(B) Legal principles - Mistakes made by counsel should not harm the litigant, emphasizing that beneficial provisions for accident victims should be interpreted liberally.

Facts of the case:
The appellant's mother was injured in an accident; the claim petition was initially dismissed on jurisdiction grounds after the appellant was advised to withdraw it.

Findings of Court:
The court restored the claim petition, recognizing the insurance company's business location as valid jurisdiction while ensuring they are not unfairly penalized for gaps in proceedings.

Issues: The main issues addressed included the validity of jurisdiction for filing claims and whether the withdrawal of a petition based on legal advice constitutes grounds for claim restoration.

Ratio Decidendi: The court ruled against penalizing the petitioner for their counsel's mistake and reaffirmed the principle that claims can be filed where the insurance company conducts business, supporting access to justice for accident victims.

Result: The application for restoration is allowed, and the claim petition is restored to its original number.

Table of Content
1. challenge to mact's dismissal of claim petition. (Para 3 , 4 , 5 , 6)
2. arguments on jurisdiction and restoration of petition. (Para 7 , 8)
3. court's interpretation of jurisdiction and withdrawal implications. (Para 9 , 10 , 11)
4. restoration of claim petition with conditions. (Para 12 , 13 , 14)
5. conclusion and direction to proceed with claim. (Para 15 , 16)

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done through hybrid mode (physical and virtual hearing).

CM APPL. 3497/2021 (for exemption)

2. Allowed, subject to all just exceptions. Application is disposed of.

CM (M) 81/2021

3. The present petition has been filed challenging the impugned order dated 1st February 2020, passed by the Presiding Officer, Motor Accident Claims Tribunal, South District, Saket Courts (hereinafter, "MACT"), vide which the application of the Petitioner, for restoration of the claim petition before the MACT has been dismissed.

4. The brief background is that the mother of the Petitioner met with an accident while she was travelling by a bus in Uttar Pradesh. The Petitioner then filed the claim petition before the Presiding Officer, MACT on 19th March, 2016. The Respondents filed their written statements before the MACT in which they took the plea that the insurance company i.e. Respondent No.3 - United Indian Insurance Company Limited, is liable to pay the compensation.

5. The insurance company objected to the jurisdiction of the MACT in Saket Courts, New Delhi. An application was filed raising the issue of maintainability, by the insurance company to which a reply was also placed on record on 25th April, 2018. Ld. counsel for the Petitioner, however, withdrew the said petition under the impression that the MACT in Delhi would not have jurisdiction to hear the claim petition.

6. Thereafter, the Petitioner is stated to have been advised to file an application for restoration, relying upon the judgment of the Supreme Court in Malati Sardar v. National Insurance Company Ltd., (2016) 3 SCC 43. However, vide the impugned order, the MACT has refused to restore the claim petition of the Petitioner. Hence, the present petition has been filed under Article 227 of the Constitution of India.

7. Ld. Counsel for the Petitioner relies upon a similar case, in which this Court had taken a view that in view of the judgment in Malati Sardar (supra), there is no bar in filing a claim petition in the jurisdiction where the insurance company is carrying on its business. He submits that a similar order may be passed in the present case.

8. Mr. Seth, ld. Counsel appearing for the insurance company submits that once the lawyer has withdrawn the petition, there is always an option to file a fresh petition before the appropriate jurisdiction.

9. Heard ld, Counsels for the parties. This Court has perused the impugned order dated 1st February, 2020. It is clear from the perusal of the initial petition and reply qua non-maintainability, that the Petitioner had contended that the Court in Saket would have jurisdiction. Thus, the reasons of withdrawal are not clear, which appears to have been done due to legal advice given to the Petitioner.

10. It is a settled position in law that a litigant cannot be made to suffer due to the mistake of a lawyer. In Malati Sadar (supra), the Supreme Court has held as under:

    "14. The provision in question, in the present case, is a benevolent provision for the victims of accidents of negligent driving. The provision for territorial jurisdiction has to be interpreted consistent with the object of facilitating remedies for the victims of accidents. Hyper technical approach in such matters can hardly be appreciated. There is no bar to a claim petition being filed at a place where the insurance company, which is the main contesting parties in such cases, has its business. In such cases, there is no prejudice to any party. There is

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