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2006 Supreme(Guj) 43

Gujarat High Court
Judgename :Abhilasha Kumari, Bhawani Singh
NEW INDIA ASSURANCE CO.LTD - Appellant
Versus
BABUBHAI PURSHOTTAMBHAI HARIJAN - Respondent
First Appeal 133 of 2006
Decided On : 01/24/2006

Advocates Appeared: Sandip C.Shah

Headnote:Point in Issue :

       Claim - Under no fault liability - Liability of insurer - In absence of inquiry into defences - Sustainability - Finding of.

       Head Note :

       Motor Vehicles Act, 1988 (Central Act 59 of 1988) - Sections 140, 141, 144, 161, 163-A, 166 and 168 - Gujarat Motor Vehicles Rules 1989 - Rule 231 - Claim - Under no fault liability - Liability of insurer - In absence of inquiry into defences - Sustainability - Finding of - Court considering the relevant provisions of the Act held that claims under different provisions are independent of each other and tried accordingly - However claim under no fault liability is triable summarily and expeditiously without requiring to establish death or permanent disability due to any wrongful act, neglect or default of the owner of the vehicle concerned or any other person - Compensation awarded under this provision is being awarded under no fault liability, therefore, finally claimable by insurer from insured - However where claim on merit under Section 166 of the Act is filed adjustment of amount paid under no fault liability can be done since, Court has to award Just compensation avoiding unjust enrichment of the victim.

       Held :

       Question advanced for consideration is whether the Claims Tribunal can competently pass order for compensation under Section 140 against the insurer without inquiring into the defences put up by the insurer and make it liable for payment of compensation. In other words, the liability to pay compensation under Section 140 could not be fastened on the insurer just because insurance policy was in force in respect of the offending vehicle on the date of accident and accident had taken place and claimant had suffered. [Para 6]

       What Court concludes is, claims under Sections 140, 161, 166, 163-A are independent of each other and tried accordingly. However, claim under Section 140 is triable summarily and expeditiously without requiring the victim to establish death or permanent disability due to any wrongful act, neglect or default or the owner of the vehicle concerned or of any other person. Compensation awarded under this provision is being awarded under "no fault liability", therefore, final claimable by the insurer from the insured. However, where claim under Section 166 is filed, adjustment of amount paid under Section 140 with amount awarded under Section 166 can be done since Court has to award just compensation under Section 168 of the Act and avoid unjust enrichment of the victim. [Para 14]

       Law Laid Down :

       Claim under no fault liability is decided summarily to achieve legislative intend of expeditious disposal to achieve legislative intend of benefit to victim of accident.

       Case Law Analysis :

       New India Assurance Co. Ltd. Ahmedabad vs. Mithakhan Dinakhan Notiyar & Ors., 1995 (2) GLR 1111 [Para 7];; Mahendrakumar Kalyanjibhai vs. Haresh Bipinchandra Pathak & Anr., 1998 (2) GLR 1199 [Para 8];; United India Insurance Co. Ltd. vs. Immam Aminasab Nadaf & Ors., 1990 ACJ 757 [Para 8];; Gujarat State Road Transport Corporation, Ahmedabad vs. Ramanbhai Prabhatbhai & Anr., AIR 1987 SC 1690 [Para 10];; Munshiram D. Anand vs. Pravinsinh Prabhatsinh Anand Society, Navagamgedh, Jamnagar, AIR 1997 Guj 60 [Para 10];; National Insurance Co. Ltd. vs. Jothu Ram & Ors., 1998 (3) GLR 2261 (SC) [Para 11];; M/s. Oriental Insurance Co. Ltd. vs. Sarju Ram & Ors., AIR 2001 Pat 47 [Para 13].-Reiled on

       Conclusion :

       Compensation awarded under no fault liability is final claimable by insurer from insured - Therefore, Court found no infirmity with the impugned order.

       Decided in Favour of :

       Respondent

       Appeal Dismissed

BHAWANI SINGH, J.

( 1 ) THIS Appeal, by New India Assurance Company Limited, is directed against the Award whether reporters of Local Papers may be allowed to see the Judgment" Yes passed by the Motor Accident Claims Tribunal (Aux.), Vadodara, dated 22. 9. 2005, below Exh. 7, MAC Petition No. 1411 of 2004, under Section 140, Motor Vehicles Act, 1988.

( 2 ) BRIEFLY stated, accident took place on 6. 2. 2004. Balubhai parshottambhai Harijan (claimant) had gone to house of Bhailalbhai valjibhai Parmar at Tilakwada. At 8:00 p. m. , he left for his house. He waited for bus at Tilakwada three roads but he boarded Truck No. GJ-1- t-4257 which came in the meanwhile. Truck was being driven rashly, negligently and at excessive speed. As a result, the driver of the truck lost control at the turn near bus stand of village Naliya, and bus turned turtle. As a result of this accident, claimant suffered fractures in legs, injuries on waist, chest and other parts of the body. Reaching home, he took treatment, reported the matter to police on the next day and took further treatment at private hospital as an indoor patient. At the time of accident, he was earning more than Rs. 1,500/- per month from labour work. He was subjected to operation for legs and treatment of other injuries, due to which, he suffered serious pains. During treatment, he had to take medicines and special diet. He had to spend on transportation and attendant. After discharge from hospital, he had to take rest for long time. Because of injuries, he could not do labour work, therefore lost income. He underwent long treatment, physical pain, mental agony and incapacity to do usual work. He suffered permanent disability, therefore, could not do work as before. Total compensation of Rs. 1,25,000/- is claimed from the opponents.

( 3 ) WITH the claim petition, application under Section 140, Motor vehicles Act, 1988, is filed for Rs. 25,000/- on the basis of facts stated in the claim petition.

( 4 ) OPPONENT-3 filed reply to claim petition and application under Section 140 denying the claims, stating interalia that both, claim petition and interim application are not maintainable in law, therefore liable to be dismissed. Averments with regard to age, occupation, address, income, nature of injuries of claimant, date, time and place of accident are denied. Registration number of offending vehicle, address of driver, owner and insurer are not admitted seeking strict proof thereof, particularly, with regard to taking place of accident by truck No. GJ-1-T- 4257 on 6. 2. 2004 around 9:00 p. m. on the turning near bus stand situated on the way going from Tilakwada to Dabhoi because First Information report was lodged on 7. 2. 2004, meaning thereby, incident of accident is fabricated. Averments that claimant had gone to Tilakwada to the house of Bhailalbhai Valjibhai Parmar and when he was returning home, took lift in truck No. GJ-1-T-4257 and accident took place as alleged due to driving of truck carelessly and negligently by the driver losing control over the steering and truck over-turning, as a result thereof, injuries suffered by the claimant, are also denied. It is stated that injuries are not accidental. Otherwise, after suffering them, claimant was not expected to take treatment at home and go to hospital next day after registering First information Report. Income earned by the claimant is also denied. It could not be said whether at the time of accident, vehicle was insured with the insurer, otherwise, amount claimed is exaggerated. Claimant is not entitled to interim compensation of Rs. 25,000/- with interest.

( 5 ) ON 22. 9. 2005, Claims Tribunal awarded compensation of Rs. 25,000/- with interest at the rate of 7. 5% per annum from the date of application till realization against opponents jointly and severally, to be paid to the claimant or deposit the same in the Tribunal within a period of one month from the date of order. Precisely, the impugned award is as under:"1. Heard, t




























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