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DELHI HIGH COURT
PRATHIBA M.SINGH
National Insurance Co. Ltd. – Appellant
Versus
Neetu – Respondent
| Table of Content |
|---|
| 1. challenges to interim awards by the insurance company. (Para 2 , 3) |
| 2. overview of section 140 and amendments. (Para 4 , 5) |
| 3. previous court ruling on interim awards. (Para 6) |
| 4. applicability of the unamended vs amended act. (Para 7 , 8 , 9) |
| 5. court’s directive for mact to resolve claims. (Para 10 , 11 , 12) |
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through Video Conferencing.
2. The present two petitions have been filed challenging the impugned orders passed by the Presiding Officer, (East), Karkardooma Courts, Delhi accepting the legal offer made by the insurance company and passing an interim award in terms of the said legal offer.
3. The challenge by the Petitioner/insurance company, in the respective matters, is to the effect that Section 140 of the MOTOR VEHICLES ACT , 1988 (hereinafter, `the Act') by which interim compensation could be awarded, stands deleted from the Act by virtue of the amendment brought in by the Motor Vehicles (Amendment) Act, 2019 (hereinafter, `the Amendment Act, 2019'). It is further submitted by Mr. Seth, ld. Counsel appearing for the insurance company that under Section 149 (3) of the Act, an award in term
Interim awards for compensation under the Motor Vehicles Act are only valid when made according to fixed amounts stipulated in the unamended Act; settlements must require claimant acceptance.
Interim compensation is not permissible under the unamended Motor Vehicles Act when not a fixed amount; offers from insurance companies require claimant acceptance to be valid.
The judgment establishes the principle that an insurance company cannot disclaim liability to pay 'no-fault' compensation under Section 140 of the Motor Vehicles Act, 1988 if the policy accepted liab....
The main legal point established in the judgment is that unless the amount involved in the dispute is at least One lakh rupees, no appeal is maintainable under Section 173(2) of the Motor Vehicle Act....
The Court emphasized the entitlement to interim compensation under S.140 of the M.V. Act when prima facie evidence supports the claim.
The main legal point established in the judgment is that unless the amount involved in the dispute is at least One lakh rupees, no appeal is maintainable under Section 173(2) of the MV Act.
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