The Permanent Lok Adalat has jurisdiction to decide cases involving disputes between an Insurance company and third party claimants, and the Insurance company is liable to pay the third party claim.

( 1 ) HEARD the parties for final disposal.

( 2 ) THE judgment dated 16-9-2006 passed by the Permanent Lok Adalat, Ranchi has been challenged in this writ petition under article 227 of the Constitution of India.

( 3 ) MR. Alok Lal, appearing for the petitioner insurance Company submitted as follows:-Permanent Lok Adalat had no jurisdiction to decide this case in which the Insurance company disputed the claim. In support of this contention, he relied on the judgments of the Supreme Court-State of Punjab v. Phulan Rani [ (2004) 7 SCC 555 : (AIR 2004 sc 4105)] and State of Punjab v. Ganpat Raj (2006 AIR SCW 4585) : (AIR 2006 SC 3089 ). The contract of insurance was only between the Insurance Company and the insurer and, therefore, the Insurance company is not liable to pay third party claim raised by the respondents and the same will not come in the "insurance service" as defined under S. 22-A (b) (vi) of "public utility service" under the Legal Services Authorities act, 1987 (for short "the Act" ). The owner, driver and insurer of the standing truck with which the Car in question dashed are also liable, but they were not made parties.

( 4 ) MR. Ashutosh Anand, appearing for respondent nos. 1 to 3 submitted as follows:-The said judgments are not applicable in the present case as they relate to the scope of Lok Adalat constituted under Section 19 of the Act, whereas under Section 22-C (8)of the Act, powers have been given to permanent Lok Adalat to decide the dispute where the parties fail to reach an agreement. Referring to the written statement of the insurance Company filed before the Lok adalat, he submitted that the Insurance company simply tried to shift onus on the respondents-claimants, whereas it was its duty to co-operate in good faith with the permanent Lok Adalat in conciliation of the dispute and to produce the evidence and other related documents before it as required under Section 22-C (6) of the Act. He relied on the order dated 11-5-2006 passed in W. P. (C) No. 1102 of 2006 (United india Insurance Co. Ltd. v. Mahanand rawani and another) and submitted that in the said case also, it was contended that permanent Lok Adalat has no jurisdiction to entertain the application under Section 166 of the Motor Vehicles Act, 1988 and to decide the motor accident claim cases for grant of compensation, but the said writ petition was dismissed holding that in the permanent Lok Adalat, the matters relating to accident claim can be filed and the Permanent lok Adalat has jurisdiction to decide the case. He further submitted that the said order was confirmed by the Division bench on 26-3-2007 in L. P. A. No. 281 of 2006 upholding the view of the learned single Judge. He further submitted that the Insurance company having paid the own damage claim of the vehicle, is bound to pay the third party claim which is also included in the insurance policy. Contradicting the argument of Mr. Alok lal, that the owner, driver and the insurer of the standing truck were not made parties, he submitted that firstly no such ground was taken by the Insurance Company before the Permanent Lok Adalat. Moreover, referring to the Division Bench judgment ofOriental Insurance Company limited v. Smt. Parveen Juneja [2002 (2)TAC 163 (P and H)], he submitted that this is not a case of contributory negligence. The deceased was a passenger in the vehicle and he was not driving the Car. This is not a case of apportionment. This is a case of composite negligence. The clalm cannot be defeated on the ground that the owner, driver and insurer of the standing truck, were not made parties by the clalmants. In support of such argument, he further drew analogy from the concluding portion of paragraph 6 of the judgment in Municipal Corporation of Greater Bombay v. Laxman Iyer and another, (2003) 8 SCC 731 : (AIR 2003 SC 4182 ). He also relied on the Full Bench judgment of Madhya Pradesh High Court in sushila Bhadoriya and others v. M. P. State road Transport Corp