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2020 Supreme(J&K) 583

IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Vinod Chatterji Koul, J.
New India Assurance Company Limited
Versus
Gh. Mohammad Bhat and Ors.
CMAM No.171/2009
Decided on 24.12.2020

Advocates:
Appearing Counsel:
For the Petitioner(s):Mr. Manzoor A. Dar, Advocate
For the Respondent(s):Mr. Mohsin Qadri, Advocate

A stale claim cannot be allowed to be raised belatedly without a reasonable explanation for the delay.

Headnote:

Limitation - Motor Accident Claims - Section 166 of the Motor Vehicles Act, 1988 - Section 110-A of Motor Vehicles Act, 1939 - [LIMITATION] - [MOTOR ACCIDENT CLAIMS] - [Section 110-A of Motor Vehicles Act, 1939, Section 166 of Motor Vehicles Act, 1988] - The court discussed the provisions of Section 110-A of the Motor Vehicles Act, 1939, and Section 166 of the Motor Vehicles Act, 1988, regarding the limitation for filing a claim petition for compensation arising out of an accident. It highlighted the deletion of the limitation period under Section 166(3) of the Act of 1988 and the Supreme Court's interpretation that a stale claim cannot be allowed to be raised belatedly without a reasonable explanation for the delay.

Fact of the Case:

The claim petition was filed by the respondent before the Tribunal 28 years after the accident, seeking compensation for injuries sustained in a motor vehicle accident. The Tribunal awarded compensation to the respondent, which the appellant Insurance Company sought to set aside on the grounds of delay and staleness of the claim.

Finding of the Court:

The court found that the claim petition was stale and dismissed it, setting aside the Tribunal's award. It held that a stale claim, such as the one in the present case, cannot be allowed to be raised belatedly without a reasonable explanation for the delay.

Issues: The issues included whether the claim petition was time-barred, whether it was maintainable due to non-joinder of necessary parties, and whether the insurance company could be held liable to indemnify the insured and compensate the petitioner.

Ratio Decidendi: The court's decision was based on the interpretation of the provisions of Section 110-A of the Motor Vehicles Act, 1939, and Section 166 of the Motor Vehicles Act, 1988, regarding the limitation for filing a claim petition for compensation arising out of an accident. It also relied on the Supreme Court's interpretation that a stale claim cannot be allowed to be raised belatedly without a reasonable explanation for the delay.

Final Decision: The appeal was allowed, and the Tribunal's award was set aside, leading to the dismissal of the claim petition.

Judgment

Vinod Chatterji Koul, J.—Impugned in this Appeal is Award dated 22nd June 2009, given by Motor Accident Claims Tribunal, Srinagar (for short “Tribunal”) on a claim petition, bearing File no.27/claim, titled Gh. Mohammad Bhat v. Gh. Ahmad Bhat and others, saddling appellant Insurance Company with liability to indemnify insured and pay compensation of Rs.3,18,000/- along with 6% interest from the date of institution of claim petition till final realization, on the grounds mentioned in Appeal on hand.

2. I have gone through the file and considered the matter.

3. A claim petition, as is discernible from the file, was filed by respondent no.1 before the Tribunal on 14th March 2002, with respect to an accident that had taken place on 21st February 1974 for grant of compensation in the amount of Rs.25.00 Lacs. Respondent no.1 is stated to have been hit by a vehicle (Truck) bearing Registration no.JKB/965, driven by respondent no.3, when respondent no.1 had been walking on correct side of the road near Nowpora Bridge, Srinagar, due to which he got seriously injured and during surgical procedure his right leg below knee was amputated, resulting in permanent disablement. An FIR no.42/1971 was also registered with concerned police station.

4. Upon presentation of claim petition before the Tribunal, appellant Insurance Company caused its appearance and filed its written statement stoutly resisting claim petition.

5. The Tribunal, given pleadings of parties, framed following issues for determination:

1. Whether on 21.02.1974, respondent no.2, Ramzan Sheikh, was plying Truck no.JKB/965 rashly and negligently as a result of which at Nowpora Bridge it hit the petitioner who sustained severe bodily injuries rendering him permanently disabled? OPP

2. Whether the petition being time barred, is not maintainable as the same has been filed after 28 years? OPR-3

3. Whether the petition is not maintainable due to non-joinder of necessary and proper party? OPR-3

4. Whether the offending vehicle was not having any Insurance cover and as such insurance company cannot be held liable to indemnify the insured and compensate the petitioner? OPR-3

5. Whether the driver of the offending vehicle was not holding a proper driving licence on the date of accident and as such the Insurance Company cannot be saddled with the liability? OPR-3

6. In case issue no.1 is proved in affirmative, to what amount of compensation the petitioner is entitled to, from whom and in what proportion? OPP

7. Relief?

6. Parties adduced and examined witnesses before the Tribunal. By impugned Award, the Tribunal directed appellant Insurance Company to pay compensation to respondent no.1 in the amount of Rs.3,18,000/- along with 6% interest from the date of institution of claim petition till final realisation.

7. Submission of learned counsel for appellant is that claim petition was filed before the tribunal after inordinate delay of 28 years and therefore, being stale. Another submission of learned counsel for appellant is that policy document relied upon by claimant in claim petition related to the period commencing from 12.10.1975 to 11.10.1976, whereas accident had taken place prior to that period, that is on 21st February 1974; thus, appellant Insurance Company was not to be fastened with liability to pay compensation to respondent no.1. He avers that it was pleaded before the Tribunal that even if claimant proved existence of policy during period of accident, liability of insurance company would be Rs.50,000/- only. The Tribunal is stated to have not recorded a finding vis-à-vis time barred nature of claim petition and while passing impugned Award the Tribunal did not consider these important aspects of the matter. He, therefore, seeks setting-aside of impugned Award.

8. Contention of learned counsel for respondent is that Subsection (3) of Section 166 of the Act of 1988 has been omitted by Section 53 of Motor Vehicles (Amendment), 1994, which came in force from 19th Novemb

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