2018 Supreme(Gau) 1709
IN THE HIGH COURT OF GAUHATI
UJJAL BHUYAN, J.
ICICI Lombard General Insurance Co. Ltd. - Petitioner
Versus
State of Assam and Others - Respondents
WP(C) No. 5328 of 2017
Decided On : 24-07-2018
For the Petitioner: Mr. G.N. Sahewalla, Mr. M. Sahewalla and Mr. A. Chetia
For the Respondents: Mr. D. Mazumdar, Mr. S.R. Baruah and Mr. M.P. Sharma
Headnote:
Constitution of India –Article 226 –Motor Vehicles Act, 1988 –Sections 168, 169, 158, 166, 165 –Issue to investigate accident cases –By filing this petition petitioner seeks a direction to respondent No. 2, i.e., Director General of Police to re-investigate all the road accident cases pending in the Motor Accident Claims Tribunals which are being proceeded on the basis of General Diary (‘GD’) Entry – Further prayer made is for a direction to the Motor Accident Claims Tribunals not to entertain any claim for compensation on the basis of General Diary (GD) Entry and to seek appropriate police investigation into the road accidents on the basis of which claims have been made –Held, Insofar the claim cases already pending before the Tribunals, which have been registered on the basis of GD Entries, Court is of the view that having regard to the beneficial nature of the legislation, i.e., the Act, it would be wholly inequitable to direct remand of those claim petitions to the concerned police stations –As discussed above, the Tribunal has got ample powers to verify the genuineness of the claims – It is the duty which is vested in the insurance companies and it is expected that having regard to the beneficial objective of the statute, insurance companies will discharge their duties in the true spirit of the Act, so that genuine claim petitions are not frustrated and are disposed of at the earliest, giving at least some solace to the victims of road accidents and family members of deceased –Writ Petition disposed of
ORDER :
1. This case was heard on 12.7.2018 and today is fixed for delivery of orders.
2. Heard Mr. G.N. Sahewalla, learned senior counsel, assisted by Mr. M. Sahewalla, learned counsel for the petitioner and Mr. D. Mazumdar, learned senior counsel and Additional Advocate General, Assam, assisted by Mr. S.R. Baruah, learned Government advocate, Assam, for the respondents. Also heard Mr. M.P. Sharma, learned counsel appearing for the Gauhati High Court.
3. By filing this petition under article 226 of the Constitution of India, petitioner seeks a direction to respondent No. 2, i.e., Director General of Police, Assam, to re-investigate all the road accident cases pending in the Motor Accident Claims Tribunals in the State of Assam, which are being proceeded on the basis of General Diary (‘GD’) Entry. Further prayer made is for a direction to the Motor Accident Claims Tribunals not to entertain any claim for compensation on the basis of General Diary (GD) Entry and to seek appropriate police investigation into the road accidents on the basis of which claims have been made.
4. Petitioner is the ICICI Lombard General Insurance Company Ltd., having its registered office at Mumbai with Branch office at Guwahati. Petitioner is engaged in the business of providing insurance coverage for motor accidents, etc. Basic grievance of the petitioner is that in the State of Assam, information relating to motor accidents are entered by the Police in the respective Police Stations in the General Diary (GD), where after, the GD Entry is forwarded to the concerned Motor Accident Claims Tribunal (‘Tribunal’), on the basis of which the claims are registered. It is contended that forwarding of GD Entry to the Tribunals is not in conformity with the law. Besides, there is no corresponding police investigation into such cases of motor accidents. Therefore, it is contended that unless there is proper investigation leading to registration of FIRs no cognizance should be taken by the Tribunals. Only FIRs should be forwarded by the Police Stations to the Tribunals and not the GD Entries. Therefore, all the claim cases, which are now pending before the respective Tribunals on the basis of GD Entries should be investigated again by the Police and only after registration of FIRs, those claim petitions may be taken up. It is contended that such prayer is not only legitimate in view of the legal position governing the field but would also go a long way in weeding out fake claims. Petitioner is a trustee in-charge of public money and when the Tribunals award compensation to victims of motor accidents, compensation is paid out of public money. Therefore, it is important that necessary precaution should be taken and there should be proper investigation before such claims are entertained.
5. Notice in this case was issued on 30.8.2017.
6. Though no affidavit has been filed by the State, a short written statement has been filed by the learned Government advocate on behalf of the State. Response of the State is that in all the claim proceedings, the Insurance Company is invariably one of the parties. Insurance Companies prove the falsity of the claim if the claim is not genuine. Insurance Companies have ample opportunities under law to establish falsity of a claim, if it is indeed a false claim. If an Insurance Company has any grievance regarding non-performance of duty enjoined upon the Police Officer to register FIR and to conduct investigation, the same can be brought to the notice of the Tribunal. Under sections 168 and 169 of the Motor Vehicles Act, 1988 (briefly, “the Act”, hereinafter), Tribunal has to hold inquiry into the claim made by the claimant, following summary procedure. The procedure has to be inquisitional and it is the duty of the Tribunal to ascertain the truth of the claim in order to render justice. Tribunal is not powerless to find out a false claim and, thereafter, to pass necessary orders.
7. Detailed submissions have been made by Mr. Sahewalla and Mr