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2025 Supreme(HP) 1391

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
AJAY MOHAN GOEL, J.
Datta Ram and Others – Appellants
Versus
United India Insurance Company Limited – Respondent
CMPMO No. 669 of 2023
Decided On : 09-09-2025 

Advocates Appeared:
For the Appellant : Ganesh Barowalia
For the Respondent: Lalit Kumar Sharma

Insurer's execution for recovering compensation from vehicle owner after appellate pay-and-recover direction is subject to 12-year limitation from appellate order; MV Act does not exempt it.

Headnote:(A) Constitution of India - Article 227 - Motor Vehicles Act - Execution proceedings by insurer after paying compensation to claimants - Right to recover from vehicle owners without filing separate suit via execution before MACT upheld as per appellate order - However, subject to 12-year limitation period from date of appellate order under which pay-and-recover right granted - Execution filed beyond 12 years held time-barred - Section 174 recovery certificate procedure does not override limitation. (Paras 8, 9, 10, 11, 13)

(B) Limitation Act - Execution of judgments/decrees/orders - 12-year period applies to insurer's recovery execution post appellate modification - No evidence of stay by higher court extends limitation - Vigilance required to file within time. (Paras 10, 12)

Facts of the case:
Original claim petition under Section 166 for death in motor accident allowed by Tribunal awarding compensation. Insurer's appeal modified by High Court directing insurer to pay claimants first and recover from vehicle owners without separate suit through execution before MACT. Insurer filed execution after more than 12 years from appellate order.

Findings of Court:
Execution proceedings maintainable without suit but time-barred as filed beyond 12 years from appellate order date; Tribunal erred in holding no limitation applies under MV Act.

Issues: Whether execution petition by insurer for recovery maintainable without suit; whether execution barred by limitation despite MV Act provisions.

Ratio Decidendi: Appellate order permitting recovery via execution does not exempt from 12-year limitation for executing judgments; MV Act Section 174 provides recovery mode post timely execution filing, not elimination of limitation period.

Result: Petition allowed; impugned execution order set aside holding proceedings time-barred.

Table of Content
1. claim awarded; insurance to pay and recover from owners (Para 1 , 2 , 3 , 4)
2. dispute on execution maintainability and limitation (Para 5 , 6)
3. execution maintainable without separate suit per fao (Para 7 , 8 , 9)
4. 12-year limitation bars delayed recovery execution (Para 10 , 11 , 12 , 13)
5. impugned order set aside as time-barred (Para 14)

JUDGMENT :

AJAY MOHAN GOEL, J.

1. By way of this petition filed under Article 227 of the Constitution of India, the petitioner has assailed order dated 03.06.2023, passed by the learned Motor Accident Claim Tribunal-1, Sirmaur District at Nahan, Himachal Pradesh, in Execution Petition No.88-Exe/10 of 2017.

2. Brief facts necessary for the adjudication of this petition are that Smt. Satya Devi and others had approached the Motor Accident Claims Tribunal by way of a claim petition under Section 166 of the Motor Vehicles Act seeking compensation on account of the death of Sh. Sahi Ram in a Motor Vehicle Accident Claims Tribunal.

3. The claim petition of Satya Devi and others was allowed by the learned Tribunal in terms of Annexure P-1 dated 30.10.1996. Learned Tribunal awarded compensation to the tune of Rs.2,49,500/- in favour of Satya Devi and others.

4. It is a matter of record and not disputed that in the appeal that was preferred against the said award by the Insurance Company, this Court modified the award passed by the learned Tribunal to the effect that the Insurance Company was called upon to pay the amount at the first instance and thereafter recover the same from the owner of the vehicle. The petitioners before this Court are the owners of the vehicle. Thereafter, the Insurance Company filed an execution petition for the execution of the award, in terms of the order passed by this Court on 27.05.2005 seeking recovery of the amount from the owners of the vehicle that was paid by the Insurance Company to the claimants. In terms of the impugned order, learned Tribunal has allowed the execution petition and petitioners herein have been fastened with the liability as is mentioned therein to indemnify the Insurance Company. Feeling aggrieved, the petitioners have approached this Court.

5. Learned counsel for the petitioners has inter alia argued that the order passed by the learned Executing Court is not sustainable in the eyes of law for the reason that the Insurance Company could not have had filed an execution petition and at the maximum it could have filed a suit for recovery against the petitioners on the strength of the order that was passed by this Court in FAO. He further submitted that besides this, otherwise also, the order under challenge is not sustainable for the reason that the execution proceedings were initiated by the Insurance Company after the expiry of limitation and this extremely important aspect of the matter has been completely ignored by the learned Executing Court while passing the impugned order.

6. On the other hand, learned counsel for the respondent referred to the order of this Court passed in FAO No.248 of 1997, dated 27.05.2005 and stated that in fact this Court in this order itself observed that the Insurance Company shall be entitled to recover this amount from the owners without filing any separate suit and by filing execution proceedings before the concerned Motor Accident Claims Tribunal. He further submitted that there is no limitation prescribed for filing execution in Motor Accident matters. Accordingly, learned counsel submitted that as there is no merit in the present petition, the same be dismissed.

7. I have heard learned counsel for the parties and have also carefully gone through the impugned order as well as other documents appended therewith.

8. In the light of the fact that this Court while disposing of FAO No.248 of 1997, in terms of order dated 27.05.2005 had observed that the Insurance Company shall be entitled to recover the amount after satisfying the compensation awarded by the Tribunal from the owner without filing any

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