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2025 Supreme(Jhk) 1404

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
Arun Kumar Rai, J.
National Insurance Company Limited - Appellant
Versus
Usha Devi wife of Late Satrughan Sharma and ors. - Opposite party
M.A. No. 271 of 2016
Decided On : 31-07-2025


Advocates:
Advocate Appeared:
For the Appellant :Mr. Amaresh Kumar, Advocate
For the Respondent:Mr. Jitesh Kumar, Advocate

The Motor Vehicles Act mandates that interim compensation must be awarded to dependents without regard to the deceased's third-party status, affirming its welfare-oriented purpose.

Headnote:(A) Motor Vehicles Act, 1988 - Section 140 - Compensation claim - Appellant challenged the award of interim compensation of Rs. 50,000/- to the deceased’s dependents - The court observed that the deceased was required to be viewed as an insured party under the policy for Personal Accident cover - The insurer's argument regarding the deceased’s status as a third party not applicable to claims under Section 140 - Emphasis on the welfare-oriented nature of the Motor Vehicles Act justifying the award. (Paras 8, 10, 15, 16)

(B) Claim - Before appellate court, issues of insurance liability and third-party status should not bar just compensation - Tribunal found no infirmity in awarding Rs. 50,000/- as interim relief. (Paras 18, 19)

Facts of the case:
The deceased Satrughan Sharma perished in a road accident caused by an unidentified vehicle while riding his motorcycle. Claimants sought interim compensation under Section 140 of the M.V. Act against both the owner and insurer of the motorcycle. (Paras 3-5)

Findings of Court:
The Tribunal's interpretation and award of interim compensation were found justifiable; the insurance company’s argument against liability was dismissed. (Paras 13-15)

Issues: The main issues involved the liability of the insurance company under Section 140 and the determination of whether the deceased was a third party.

Ratio Decidendi: The court ruled that while the issue of third-party status is significant, the interim relief provided under Section 140 stands justified due to the beneficial nature of the M.V. Act aiming to secure fair compensation. (Paras 16-17)

Result: Appeal dismissed.

Table of Content
1. circumstances surrounding the fatal accident. (Para 3 , 4 , 5 , 6)
2. insurance company's liability and relevant case law. (Para 8 , 9 , 10)
3. analysis of tribunal's findings and ongoing inquiries. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17)
4. affirmation of tribunal's award and compliance directives. (Para 18 , 19 , 20 , 21)

JUDGMENT :

Arun Kumar Rai, J.

1. Heard Mr. Amaresh Kumar, learned counsel appearing on behalf of the appellant and Mr. Jitesh Kumar, learned counsel for the respondent no.1 (claimant).

2. The instant Miscellaneous Appeal has been preferred on behalf of appellant-The National Insurance Company Ltd., against the award dated 06.01.2016 passed in Compensation Case No. 67 of 2013, whereby the District Judge III-cum- Motor Vehicles Accident Claim Tribunal, Jamshedpur has allowed the application filed under Section 140 of MOTOR VEHICLES ACT , 1988 (in short, M.V. Act) and awarded compensation of Rs 50,000/- to be paid within 30 days and in case of failure to do so interest @ 12% from the date of award till realization.

Factual matrix of the case

3. Brief facts of the case are that, the deceased Satrughan Sharma was an ex-employee of the Tata Steel. On 11.08.2010 at about 12:00 noon while he was going towards Ghatshila from his Hero Honda Motorcycle bearing registration no. JH05 AA 2390 from his house, an unknown car, being driven in a rash and negligent manner, hit him, causing him to suffer serious injuries. Deceased was brought to T.M.H. hospital and during the treatment he succumbed to injuries.

4. On the basis of fardbeyan of informant, an F.I.R. has been registered at MGM (Mango) Police Station being P.S. Case no.342/2010 dated 17.08.2010 under Sections 278 /304-A of IPC against driver of unknown vehicle. During investigation, Maruti car bearing registration no. BR 16A/0040 was identified as offending vehicle.

5. An application under Section 140 of M.V. Act has been filed before the Motor Vehicles Accident Claim Tribunal, Jamshedpur for interim compensation by the dependents of deceased against owner of offending car, driver of the said car and appellant- Insurance Company being insurer of the Hero Honda motorcycle bearing registration no. JH05AA 2390 which was being driven by the deceased.

6. Record of the Tribunal reveals that, certified copy of the F.I.R., death certificate of the deceased, certificate of registration of Hero Honda motorcycle bearing registration no. JH05AA 2390, post mortem report of the deceased and the insurance policy of Hero Honda motorcycle bearing registration no. JH05AA 2390 have been brought on record by the dependents of the deceased.

7. After considering the materials available on record, learned Tribunal passed the award dated 06.01.2016 directing the appellant-Insurance Company to pay Rs. 50,000/- as interim compensation under Section 140 of M.V. Act.

8. Learned counsel for the Insurance Company vehemently argued that it is claimant’s case that, it is the fault of Maruti car on account of which accident took place which resulted into the death of Satrughan Sharma and learned Tribunal has despite directing the insurer or owner of Maruti car asked the insurance company of the motorcycle bearing registration no. JH05AA 2390 to pay Rs.50,000/- which is erroneous and not in consonance with law in view of judgment of Hon’ble Supreme Court in Ramkhiladi and another vs. United India Insurance Company and another reported in (2020) 2 SCC 550 , as the deceased is not the third party and he is second party. While arguing the matter, learned counsel further submitted that no liability of insurance company would arise under Section 147 of M.V. Act, but has very fairly conceded that as per insurance policy, the deceased is entitled for Rs.1 Lac as Personal Accident cover was there which makes entitlement of the driver/owner for Rs.1 Lac in case of death, but not under M.V. Act rather, claimant ought to have approached consumer forum for the same.

9. Per contra, learned counse

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