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2012 Supreme(J&K) 208
JAMMU & KASHMIR HIGH COURT
Mansoor Ahmad Mir, J.
National Insurance Co.Ltd. -Appellant
Versus
Nitan Singh & ors. -Resopndent
CIMA No.307/2011
Decided On : 16-05-2012
For Appellant:Mr. Suneel Malhotra, Advocate.
For Respondents:Mr. B. R. Manhas, Advocate, for respondents 1 to 3.
Nemo for respondents 4 , 5.
CMA No.398/2012
The court emphasized the mandatory grant of interim compensation on the basis of no-fault liability as per Section 140 of the Motor Vehicles Act, and highlighted the specific procedures to be followed by the Tribunal in determining the petition under this section.
Headnote:
Motor Vehicles Act - Interim Compensation - Section 140
Fact of the Case:
The claimants sought release of half of the interim awarded amount based on the grounds presented in the appeal. The appeal was directed against the interim order/award passed by the Motor Accidents Claims Tribunal, Jammu in a claim petition, where an interim award of Rs.50,000/- was granted in favor of the claimants. The appellant-insurer argued that the impugned order should be set aside due to the driver of the offending vehicle not having a valid driving license at the relevant time.
Finding of the Court:
The court upheld the impugned order and dismissed the appeal, stating that the Tribunal had rightly passed the order and imposed liability on the insurer-appellant. The court directed the registry to release the awarded amount in favor of the claimants.
Issues: The main issue was whether the appellant-insurer's argument regarding the driver's lack of a valid driving license could set aside the interim order granting compensation to the claimants.
Ratio Decidendi: The court emphasized that the provision of Section 140 of the Motor Vehicles Act mandates the grant of interim compensation on the basis of no-fault liability, and the Tribunal is required to follow specific procedures while determining the petition under this section. The court also highlighted that the insurer's defenses in terms of other provisions contained in the Act should not be considered at the stage of granting interim compensation.
Final Decision: The appeal was dismissed, and the court directed the registry to release the awarded amount in favor of the claimants.
With the consensus of learned counsel for the parties present, I deem it proper to take up the appeal for its final disposal.
CIMA No.307/2011
2. This appeal is directed against the interim order/award dated 05.05.2012 passed by the Motor Accidents Claims Tribunal, Jammu in a claim petition, titled as Nitin Singh & others vs National Insurance Company, whereby application for grant of interim compensation in terms of Section 140 of the Motor Vehicles Act, 1988 (for short, Act) came to be allowed and interim award of Rs.50,000/- came to be passed in favour of claimants-respondents 1 to 3 (for short, impugned order).
3. The ground taken by the appellant-insurer in the memo of appeal, as argued by the learned counsel for appellant is that the driver of the offending vehicle was not having valid driving licence at the relevant point of time, thus the impugned order merits to be set aside. It is apt to reproduce Section 140 of Motor Vehicle Act herein.
“140. Liability to pay compensation in certain cases on the principle of no fault. – (1) Where death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provisions of this section.
(2) The amount of compensation which shall be payable under sub-section (1) in respect of the death of any person shall be a fixed sum of fifty thousand rupees and the amount of compensation payable under that sub-section in respect of the permanent disablement of any person shall be a fixed sum of twenty-five thousand rupees.
(3) In any claim for compensation under sub-section (1), the claimant shall not be required to plead and established that the death or permanent disablement in respect of which the claim has been made was due to any wrongful act, neglect or default of the owner or owners of the vehicle or vehicles concerned or of any other person.
(4) A claim for compensation under sub-section (1) shall not be defeated by reason of any wrongful act, neglect or default of the person in respect of whose death or permanent disablement the claim has been made nor shall the quantum of compensation recoverable in respect of such death or permanent disablement be reduced on the basis of the share of such person in the responsibility for such death or permanent disablement.
(5) Notwithstanding anything contained in sub-section (2) regarding death or bodily injury to any person, for which the owner of the vehicle is liable to give compensation for relief, he is also liable to pay compensation under any other law for the time being in force:
Provided that the amount of such compensation to be given under any other law shall be reduced from the amount of compensation payable under this section or under section 163A.”
4. This provision mandates how to grant interim compensation by making interim award on the basis of no fault liability.
5. While considering the application for grant of interim compensation, the Tribunal has to take into consideration the contents contained in the claim petition, FIR, postmortem report, report of the police, death certificate/disability certificate and, thereafter, has to make an interim award of Rs.50,000/- in case of death or Rs.25,000/- in case of permanent disability. At this stage the Tribunal has not to consider other defences as available to the insurer in terms of other provisions contained in the Act.
6. My view is fortified by the judgment of this Court in National Insurance Co. Ltd. vs Nasib Chand, 2011 (II) SLJ 623. It is apt to reproduce paras 3, 6, 18 & 19 herein.
“3. The crux of the matter is whether the defence projected and taken by the appellant-insurer in terms of Section
