IN THE HIGH COURT OF GAUHATI
Iqbal Ahmed Ansari, J.
United India Insurance Co. Ltd.
Vs.
Kalitara Sarkar and Ors.
MAC Appeal Nos. 15 and 16 of 2002
Decided On: 08.05.2007
MOTOR VEHICLES ACT - NO FAULT LIABILITY - APPEALABILITY OF ORDER - ORDER DIRECTING PAYMENT OF COMPENSATION UNDER SECTION 140 OF THE MOTOR VEHICLES ACT, 1988 - WHETHER APPELLATE - SECTION 173 OF THE ACT OF 1988.
Fact of the Case:
Two appeals arose out of the same accident and raised essentially identical questions of law. The owner of the offending vehicle and the insurer thereof appeared in the proceedings. As no objection was raised by the owner and the insurer of the said vehicle with regard to the claim for compensation of 'No Fault Liability' amounts, the Tribunal passed orders, directing, inter alia, payment of the said sum of Rs. 50,000/- by the insurer to the claimants in each of the said two cases. After the said orders were passed, petitions were filed by the insurer, in both the said claim cases, stating, inter alia, that the vehicle No. AMZ 6850, which was allegedly involved in the said accident, was not duly covered by the insurance policy and, hence, the liability of payment of Rs. 50,000/- be shifted to the owner of the said vehicle. Pending disposal of the said two petitions, the written statements were filed by the insurer and, thereafter, upon hearing the learned Counsel for the parties, the learned Tribunal directed the insurer, to make payment of the 'No Fault Liability' amount of Rs. 50,000/- as had been directed by the order, dated 18.08.1998, aforementioned. The orders, dated 9.10.2001, aforementioned are, now, under challenge in the present appeal.
Finding of the Court:
The Court held that an order for compensation, made under Section 140 or under Section 166 is an award and such an award is appealable under Section 173.
Issues: Whether an order directing payment of compensation, under Section 140 of the Motor Vehicles Act, 1988 (in short 'the MV Act'), which is popularly known as 'No Fault Liability' amount, is appellate under Section 173 of the Act of 1988.
Ratio Decidendi: The Court observed that the scheme of the MV Act recognizes, amongst others, two types of claims, one under Section 166 and the other under Section 140. An order for compensation, made under Section 140 or under Section 166 is an award and such an award is appealable under Section 173.
Final Decision: The appeals failed and were dismissed. It was made clear that the Appellants, as insurer, would remain entitled to the determination of the question as to whether the insurance coverage, in question, was obtained, as indicated hereinabove, by playing fraud on the insurer and, depending upon the finding, which may be reached on this aspect of the case by the claims Tribunal, further direction for payment of compensation to the claimants shall be made by the Tribunal.
I.A. Ansari, J.
1. The fate of these two appeals largely depend on the question as to whether an order directing payment of compensation, under Section 140 of the Motor Vehicles Act, 1988 (in short 'the MV Act'), which is popularly known as 'No Fault Liability' amount, is appellate under Section 173 of the Act of 1988. As both these appeals have arisen out of the same accident and raised essentially identical questions of law, both these appeals have been heard together and are being disposed of by this common judgment and order. The material facts and various stages, which have led to the present appeals, may, in brief, be set out as follows:
(i) While MAC Case No. 27/1998 arose out of an application seeking compensation of a sum of Rs. 7,48,000/- the application having been made under Section 166 of the Act of 1988, by the mother, brother and sisters of Nabiruddin, who, according to the claimants, had died in the motor vehicular accident, which took place due to rash and negligent driving, on 28.01.1998, at Lachitnagar, Changsari, of a Mini Bus, bearing Registration number AMZ 6850. The MAC Case No. 28/1998 arose out of an application, seeking a sum of Rs. 8,00,000/-, the application having been made, under Section 166 of the Act of 1988, by the mother of deceased Naba Kumar Sarkar, who had died in the same accident as did Nabiruddin.
(ii) The claimants, in both the claim cases, also filed separate applications under Section 140 of the MV Act seeking compensation of a sum of Rs. 50,000/- as 'No Fault Liability' amount for the death of the said two deceased.
(iii) In both the said claim cases, the owner of the offending vehicle, namely, Director of Tourism, Government of Assam and the insurer thereof, namely, M/s United India Insurance Company Limited, appeared in the said proceedings. As no objection was raised by the owner and the insurer of the said vehicle with regard to the claim for compensation of 'No Fault Liability' amounts, learned Member, Motor Accident Claims Tribunal, Darrang, Mangaldoi, passed orders, on 18.08.1998, in each of the said two cases, directing, inter alia, payment of the said sum of Rs. 50,000/- by the insurer to the claimants in each of the said cases. The direction for payment of the 'No Fault Liability' having been made before the written statements could be filed.
(iv) After the said orders were passed, petitions were filed by the insurer, in both the said claim cases, stating, inter alia, that the vehicle No. AMZ 6850, which was allegedly involved in the said accident, was not duly covered by the insurance policy and, hence, the liability of payment of Rs. 50,000/- be shifted to the owner of the said vehicle.
(v) Pending disposal of the said two petitions, the written statements were filed by the insurer and, thereafter, upon hearing the learned Counsel for the parties, the learned Tribunal directed the insurer, on 09.10.2001, to make payment of the 'No Fault Liability' amount of Rs. 50,000/- as had been directed by the order, dated 18.08.1998, aforementioned. The orders, dated 9.10.2001, aforementioned are, now, under challenge in the present appeal.
2. I have heard Mr. A. Phukan, learned Counsel for the insurer-Appellant, and Mr. C. Choudhury, learned Counsel, appearing on behalf of the claimant-Respondent. None has appeared on behalf of the owner Respondent. I have also heard Mr. B.C. Das, learned Senior counsel, as Amicus Curiae.
3. Appearing on behalf of the Appellant, Mr. Phukan has submitted that in the present case, the Appellant, as insurer, had insured, on the request of the Director of Tourism, Govt. of Assam, their Vehicle No. AMY 3860 (Swaraj Majda), and this policy commenced, on 31.03.1997, for a period of one year. However, after about 10 months from the date, when the Vehicle No. AMY 3860 stood insured, a letter, dated 12.02.1998, was received by the insurer from the Director of Tourism, Govt. of Assam, informing the insurer that the vehicle No. AMY 3860, which had been given th
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