2012 Supreme(J&K) 699
JAMMU & KASHMIR HIGH COURT
Mansoor Ahmad Mir, J.
Oriental Insurance Co.Ltd. -Appellant
Versus
Sarishta Kurnari & Ors. -Resopndent
CIMA No. 432/2010
Decided On : 29-12-2012
Mr. Amrit Sarin, Advocate for the Appellant.
Mr. Sudesh Sharma, Advocate, for the Respondent.
The court emphasized that claims under Section 140 of the Act cannot be defeated on the ground that the owner has committed a breach or the insurer has a defense under Section 149, and that the Tribunal is required to satisfy itself on specific points while determining the petition under Section 140.
Headnote:
Motor Vehicles Act - Interim Compensation - Section 140
Fact of the Case:
The appeal is against an interim order granting compensation under Section 140 of the Motor Vehicles Act, 1988. The appellant-insurer argued that the driver of the offending vehicle did not have a valid driving license at the relevant time.
Finding of the Court:
The court found that the Tribunal rightly passed the impugned order and held the insurer-appellant liable for the interim compensation.
Issues: The main issue was whether the insurer's defense under Section 149 of the Act could be considered at the time of determining the application for interim compensation under Section 140.
Ratio Decidendi: The court held that the defense projected by the appellant-insurer in terms of Section 149 of the Act cannot be pressed into service at the time of determining the application under Section 140 for grant of interim award on no-fault liability.
Final Decision: The appeal was dismissed, and the court directed the registry to release the interim awarded amount in favor of the claimants-respondents.
2. 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."
3. This provision mandates how to grant interim compensation by making interim award on the basis of no fault liability.
4. While considering the application for grant of interim compensation, the Tribunal has to take into consideration the contents contained in the claim petition, FIR, post-mortem 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.
5. My view is fortified by the judgment of this Court in National Insurance Co. Ltd. v. Nasib Chand, 2011 (II) SLJ 623; 2010 (4) JKJ [HC] 41. It is apt to reproduce paras 3, 6, 18 & 19 herein.
"3. The crux of the matter is whether the defence projected £Rd taken by the appellant-insurer in terms of Section 149 of the Act can be pressed into service at the time of determination of application under Section 140 of the Act for grant of interim award on no fault liability .The answer is negative for the following reasons.
6. Claims under Se