2009 (3) GCD 2085 (Guj)
Hon’ble Mr. Justice H.K. Rathod
United India Insurance Co. Ltd.
Versus
Rushika Amrutji Thakore & Ors.
First Appeal No. 2199 of 20061—Decided on 07/07/2008
Motor Vehicles Act, 1988 (Central Act 59 of 1988) — Sections 140, 166 and 163-A — Scope of Section 140 — Application under Section 140 is an independent proceedings and it is maintainable even in absence of Section 163-A or 166 application — Section 140 does not provide for interim/ad hoc compensation because compensation paid under this section is final.
Held :
Section 140 (Chapter X)) provides for fixed sum of compensation in cases of no fault liability. It is independent of Section 161 (payment of compensation in cases of hit and run motor accidents), Section 163-A (payment of compensation on structured formula basis/fault liability - Chapter XI) and Section 166 (fault liability - Chapter XII). Application for compensation under Section 140 is maintainable without there being application for compensation under Section 163-A or under Section 166 and disposable accordingly, and compensation awarded shall be final. But, where two applications are filed under Section 140 and 163-A or under Section 140 and under Section 166, compensation awarded under Section 140 shall be reduced from the amount of compensation awarded under Section 163-A or under Section 166 provided the compensation awarded under the latter provisions are higher, otherwise, compensation paid under Section 140 would be final. Further, where claim is preferred only under Section 140 and not any other provision, compensation awarded under Section 140 shall be final. Section 140 does not provide for interim/ad-hoc compensation because compensation paid under this Section is final. ‘Interim/ad-hoc compensation’ is used when apart from application under Section 140 there is also application under Section 163-A or under Section 166, since the amount of compensation paid under Section 140 is made deductible. Where in addition to application for compensation under Section 140 there is application under other provisions on principle of fault liability, application under Section 140 shall be disposed of in the first place, since expeditious disposal of application under Section 140 is the basic theme of this beneficial piece of legislation. But, where claimant has filed application under Section 140, but not under any other provision claiming compensation on fault liability principle, application is maintainable and compensation awardable, but not recoverable from the claimant. The insurance company is not entitled to seek trial on merit of any legal defences available to it under Section 149(2) of the Act. Remedy of insurance company is against the owner of the vehicle invoking defences available to it, but not against the claimant. [Para 9]
Law Laid Down :
Where claimant has filed application under Section 140, but not under any other provision claiming compensation on fault liability principle, application is maintainable and compensation awardable, but not recoverable from the claimant.
Case Law Analysis :
Yallwwa (Smt.) and Others Versus National Insurance Co. Ltd. and Another, 2007 (6) SCC 657 [Para 4];; New India Assurance Co. Ltd. vs. Babubhai Purshottambhai Harijan & Ors., 2006 (1) GLH 695 [Para 5].—Relied on
H.K.Rathod, J.—Heard learned Advocate Mr. Hasmukh Thakkar on behalf of the appellant United India Insurance Co. Ltd. And Mr. V.B. Malik, learned Advocate for the respondents claimants in each appeal. These First Appeals are admitted on 13.7.2006. Today, with consent of both the learned advocates, taken up for final hearing.
2. In the present First Appeals, the appellant has challenged the order passed by Motor Accident Claims Tribunal in MACP filed by the respondents claimants under Section 140 of the Motor Vehicles Act, 1988. The accident occurred on 1st October, 2004 at about 3.30 at Nava Mota sim near Garnala and police complaint was lodged against the driver at Khedbrahma Police Station. Respondents had received injury in the said accident, therefore, application was filed under Section 140 of the Motor Vehicles Act, 1988 claiming amount on No Fault Liability. Tribunal has issued notice to the appellant insurance company, driver and owner of the vehicle in question. All the three respondents filed their respective replies before the Claims Tribunal. Thereafter, the Tribunal has heard the learned Advocates appearing for the parties. Application was made for interim compensation claimed under Section 140 of the Motor Vehicles Act, 1988 based on No Fault Liability. Respondent has produced panchanama, insurance policy, RC Book of the vehicle, injury certificate and certificate of permanent disability and relevant X-Ray on record. At the time when the application was heard by the Claims Tribunal, the Insurance Company had not raised contention that against the Insurance Company, such application under Section 140 of the Motor Vehicles Act, 1988 is not maintainable. The Insurance Company has also not raised objection against having insurance policy of the vehicle in question, means, not disputed insurance policy of the vehicle in question. Therefore, the Claims Tribunal has considered relevant provisions of Section 140 of the Motor Vehicles Act, 1988 and after examining the relevant documents produced on record by the respondents, came to the conclusion that the respondents are entitled for compensation based on No Fault Liability being interim measure. Therefore, accordingly, order was passed by the Claims Tribunal against all the respondents namely driver, owner and insurance company of the vehicle in question. The Tribunal has also directed to invest 70 per cent of the said amount in Nationalized Bank in Fixed Deposit Receipt and 30% of the amount is ordered to be paid to the claimant by account payee cheque. Said order was passed by the Claims Tribunal on 23rd January, 2006. Before the Claims Tribunal, an application under Section 166 of the Motor Vehicles Act, 1988 was also filed by the claimants. The application under Section 140 of the Motor Vehicles Act, 1988 was filed vide Exhibit 5 before the Claims Tribunal on 30th October, 2004. From one accident, six motor accident claims petitions were filed from MACP No. 1200 of 2004 to 1205 of 2005. Present appeals have been filed by the appellant insurance company against the order passed by the Claims Tribunal below application Exhibit 5 dated 23rd January, 2006. Matter was examined by the Claims Tribunal and thereafter, reasoned order was passed after considering the documents on record not disputed by the advocate for the appellant insurance company. Appellant Insurance company had not raised any contention before the claims tribunal about the liability and had also not raised contention that such application is not maintainable against the Insurance Company. Therefore, the Claims Tribunal has decided the application under Section 140 of the Motor Vehicles Act, 1988 on the basis of the documents which are on record and granted the amount of interim compensation on the basis of No Fault Liability with a direction to the appellant insurance company to deposit the said amount before the Claims Tribunal. Thereafter, a purshis was filed by the respondents claimants before
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