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2005 Supreme(Gau) 800

IN THE HIGH COURT OF GAUHATI
H.N. Sarma, J.
Oriental Insurance Co. Ltd. - Appellants
Vs.
Krishna Kakati and Ors. - Respondent
WP(C) No. 7669 of 2005
Decided On: 25.11.2005

Advocates appeared:
For Appellant/Petitioner/Plaintiff: D. Baruah, M. Choudhury, R. Kaur and S. Dutta, Advs.
For Respondents/Defendant: None Appeared

Headnote:

Insurance Company - Challenge to Award - Motor Vehicles Act - Section 166, Section 149(2) - The court discussed the maintainability of a writ petition under Article 226/227 of the Constitution of India against an award of the Motor Accident Claims Tribunal (MACT) in light of the statutory right of appeal under Section 166 of the Motor Vehicles Act. The court emphasized that the right of appeal by the Insurance Company against the award of the Tribunal is restricted under Section 149(2) of the Act, and the grounds for appeal are limited. The court held that the High Court should not entertain a petition under Articles 226/227 of the Constitution when the insurer has a remedy by filing an appeal before the High Court. The court also highlighted that an insurer cannot challenge an award made by a Tribunal on the ground of quantum of compensation only, as an erroneous decision, in the absence of any other ground, is not amenable to the writ jurisdiction under Article 226 and/or 227 of the Constitution of India.

Fact of the Case:

The writ petitioner, an Insurance Company, challenged an award passed by the Motor Accident Claims Tribunal (MACT) awarding compensation to a claimant for injuries sustained in a bus accident. The petitioner contended that the compensation awarded was exorbitant and that the Tribunal acted illegally and arbitrarily.

Finding of the Court:

The court found that the writ petition filed under Article 226/227 of the Constitution of India against the award was not maintainable, emphasizing the restricted right of appeal by the Insurance Company under Section 149(2) of the Motor Vehicles Act. The court held that the High Court should not entertain a petition under Articles 226/227 when the insurer has a remedy by filing an appeal before the High Court. Additionally, the court emphasized that an insurer cannot challenge an award made by a Tribunal on the ground of quantum of compensation only.

Issues: The main issue was the maintainability of the writ petition filed by the Insurance Company under Article 226/227 of the Constitution of India against the award of the MACT.

Ratio Decidendi: The court's decision was based on the interpretation of the statutory right of appeal under Section 166 of the Motor Vehicles Act and the restricted grounds for appeal available to the Insurance Company under Section 149(2) of the Act. The court also relied on the principle that an erroneous decision, in the absence of any other ground, is not amenable to the writ jurisdiction under Article 226 and/or 227 of the Constitution of India.

Final Decision: The writ petition filed by the Insurance Company under Articles 226/227 of the Constitution of India against the award was rejected by the court. The court held that the petition was not maintainable and dismissed it.

JUDGMENT

H.N. Sarma, J.

1. Heard Mr. S. Dutta, the learned Counsel, appearing on behalf of the writ petitioner Insurance Company.

2. The challenge made in this application filed under Article 226/227 of the Constitution of India, is an award dated 6.11.1999 passed by the leaned Member, MACT, Kamrup at Guwahati in MAC Case No. 71/1997.

3. Against the aforesaid impugned award, the petitioner earlier filed a civil revision petition being CRP No. 75/2000 under Article 227 of the Constitution of India. When the said revision petition was dismissed inter alia holding not to be maintainable vide judgment and order dated 20.1.2005, this present writ petition under Article 226/227 of the Constitution of India is filed challenging the same award, seeking to invoke the writ jurisdiction of the High Court.

4. The case of the petitioner, inter alia, is that the claimant respondent himself filed the claim case being MACT Case No. 71/97 before the MACT, Kamrup at Guwahati claiming compensation for the injuries sustained by him while the bus No. AS 01/0658, in which he was the handyman, met with the accident on 8.9.1996. During the course of the trial, the learned Tribunal examined 4 witnesses including the claimant himself, whereas the Insurance Company/writ petitioner examined none. On consideration of the materials available on record, the learned Tribunal passed the impugned award dated 6.11.1999 awarding a sum of Rs. 5 lakh along with interest @ 12% per annum with effect from 18.2.1997 till realization as compensation.

5. The basic case highlighted by the Insurance Company is that the learned Tribunal acted illegally and arbitrarily in awarding the compensation to the tune of Rs. 5 lakh which is an exorbitant one that too without examining the doctor as a witness although the learned Tribunal took into consideration the necessary certificate issued by the doctor and as such it should be interfered with in exercise of the extra ordinary power of the High Court under Article 226 of the Constitution of India. It is submitted that dismissal of the earlier revision petition would not be a bar for exercising the extra ordinary jurisdiction of the High Court exercising power of judicial review.

6. At the outset, a question arose regarding the maintainability of this writ petition filed under Article226/227 of the Constitution of India. Referring to two single Bench decisions of this Court as reported in 2005 (1) GLT 569 National Insurance Co. Ltd. and Ors. v. Gauri Roy (Deb) and Ors. and (2005) 1 GLT 1 Oriental Insurance Co. Ltd. v. Rejina Begum and Ors. the learned Counsel for the petitioner has submitted that the power of judicial review under Article 226 is very much there and the same being a basic structure of the Constitution, cannot be taken away in spite existence of statutory right of appeal under Section 166 of the Motor Vehicles Act and in such a situation, this petition under Article 226/227 of the Constitution of India is maintainable. The rider of law as enunciated by the Apex Court in Sadhana Lodh v. National Insurance Co. Ltd and Anr. reported in [2003] 1 SCR 567 will come into play, in view of the decision of this Court referred to above.

7. In Sadhana Lodh (supra), the Apex Court dealing with the maintainability of a writ petition against an award of MACT on the face of existence of statutory right of appeal at paragraphs 6, 7 and 8 held as follows:

6. The right of appeal is a statutory right and where the law provides remedy by filing an appeal on limited grounds, the ground of challenge cannot be enlarged by filing a petition under Articles 226/227 of the Constitution on the premise that the insurer has limited grounds available for challenging the award given by the Tribunal. Section 149(2) of the Act see National Insurance Co. Ltd v. Nicolletta Rohtagi. This being the legal position the petition filed under Article 227 of the Constitution by the insurer was wholly misconceived. Where a statutory right to file an appeal has been pro












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