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2025 Supreme(Jhk) 1305

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
Rajesh Shankar, J.
National Insurance Company Ltd. - Petitioner
Versus
Smt. Ulashi Singh, W/o Late Kuna Singh Sardar and ors. - Respondents
W.P.(C) No. 2785 of 2008
Decided On : 17-02-2025


Advocates:
Advocate Appeared:
For the Petitioner:Mr. G.C. Jha, Advocate, Mrs. Nirupama, Advocate
For the Respondent:Mr. J.N. Upadhyay, Advocate

Permanent Lok Adalat has jurisdiction to adjudicate compensation claims under the Motor Vehicles Act after conciliation efforts fail, affirming its authority and established processes.

Headnote:(A) Legal Services Authorities Act, 1987 - Section 22

(C) - Motor Vehicles Act, 1988 - Sections 140 and 166 - Quashing of order of Permanent Lok Adalat awarding Rs.2,63,000/- as compensation for death caused in a motor vehicle accident - Permanent Lok Adalat's jurisdiction upheld as it acts within defined statutory powers and under stipulated procedures - Previous claims withdrawn do not impede the present claim - Compensation was awarded after due process of conciliation and adjudication, hence affirmed. (Paras 1, 8, 12, 16)

Facts of the case:
The writ petition was initiated to challenge an order from the Permanent Lok Adalat directing compensation for death caused in a motor vehicle accident. The petitioner contested the jurisdiction of the P.L.A, asserting prior claims filed by the claimant. (Paras 2-4)

Findings of Court:
The court found no fault in the P.L.A’s procedures or jurisdiction in awarding compensation, confirming the authority’s right to decide under the relevant statutory frameworks. (Paras 12, 16)

Issues: Whether the Permanent Lok Adalat had jurisdiction to award compensation under the Motor Vehicles Act and whether prior claims affected the current proceedings. (Paras 8, 12)

Ratio Decidendi: The court emphasized that the P.L.A can adjudicate disputes according to the processes established by the Legal Services Authorities Act, asserting that matters related to compensation claims are under its purview once conciliation fails. (Paras 9, 12)

Result: Writ petition dismissed; order of Permanent Lok Adalat upheld.

Table of Content
1. jurisdiction of pla over motor vehicle claims. (Para 1 , 2 , 4)
2. argument regarding suppression of material facts. (Para 3 , 5)
3. claimants' position on jurisdiction and filings. (Para 6 , 8 , 15)
4. adjudicatory nature of pla under relevant provisions. (Para 9 , 10 , 11 , 12)
5. final order on compensation distribution. (Para 14 , 16)
6. court modified compensation award in favor of the wife. (Para 17)

JUDGMENT :

Rajesh Shankar, J.

The present writ petition has been filed for quashing/setting aside the order dated 09.01.2008 (Annexure-1 to the writ petition) passed by the Permanent Lok Adalat, Jamshedpur (hereinafter referred to as “the PLA”) in P.L.A. Case No. 90/2007 in exercise of its power conferred under Section 22 (C) of the Legal Services Authorities Act, 1987 (hereinafter referred to as the Act, 1987), whereby the petitioner was directed to pay the awarded amount of compensation of Rs.2,63,000/- to the claimant i.e., the respondent no. 1 within one month from the said order, failing which she was made entitled to recover and realize the compensation amount through the process of law with interest at the rate of 12% per annum on account of death of her husband namely, Kuna Singh Sardar in motor vehicle accident.

2. Learned counsel for the petitioner submits that the respondent no. 1 had filed an application under Section 166 of the Motor Vehicle Act, 1988 for herself and on behalf of her two minor children i.e., the respondent nos. 2 and 3 before the P.L.A, Jamshedpur constituted under Section 22 (B) of the Act 1987 claiming compensation of Rs.3,20,000/- along with interest on account of death of her husband namely, Kuna Singh Sardar in motor vehicle accident which was said to have been taken place on 05.08.2006 caused by a truck bearing registration No. HR-38J-6871 near Village Khunti, Chandil, District Seraikella-Kharsawan. Thereafter, a case was registered as P.L.A Case No. 90 of 2007. The petitioner filed the written statement challenging the maintainability of the said case stating that the P.L.A. had no jurisdiction to entertain the cases related to Motor Vehicle Act, 1988 as the Motor Accident Claims Tribunals were separately constituted for the said purpose.

3. It is further submitted that after receipt of the notice from the P.L.A, the petitioner deputed Mr. Arun Kumar Tiwary, Advocate as Investigator who reported the petitioner vide his report dated 19.07.2007 that altogether four cases were filed by the claimant(s) at different courts for grant of compensation on account of death of Late Kuna Singh Sardar who had died in the motor vehicle accident occurred on 05.08.2006 and thus it was clear that the claimant(s) had not come to the court with clean hands.

4. It is also submitted that the claimants had suppressed the material fact that they had already filed compensation cases before the Motor Accident Claims Tribunals (M.A.C.T), Seraikella and Jamshedpur vide Compensation Case Nos. 1/2007 and 155/2006 respectively which were dismissed on 01.06.2007 and 07.07.2007 respectively. Hence, on this score alone, the claim application being P.L.A No. 90 of 2007 filed by the claimant(s) was fit to be dismissed.

5. It is further submitted that the P.L.A in its order dated 09.01.2008 completely ignored and did not even discuss the points raised by the petitioner in the written statement. It is also submitted that the P.L.A constituted under the Act, 1987 had no jurisdiction to decide the issue which was required to be adjudicated on the basis of reasoning and evidence led by the parties.

6. On the contrary, learned counsel for the respondent nos. 1, 2 and 3 submits that P.L.A Case Nos. 90 of 2007 and 92 of 2007 were filed by the claimants under Section 166 and Section 140 of the Act, 1988 respectively. P.L.A Case No. 92 of the 2007 was allowed by the P.L.A awarding compensation of Rs.50,000/- to the claimant(s) which was also paid by the petitioner. Moreover, Compensation Case No. 1 of 2007 filed by the cla

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