1966 Supreme(Mad) 244
Madras High Court
N. ANANTANARAYANAN
South India Insurance Co., Ltd.(Head Office) Bombay - Appellant
Versus
Lakshmi - Respondent
Decided On : 08/18/1966
M. P. Subramaniam, for Petitioner; S. Jayaraman for P. Raghaviah, for Respondents.
The principles of natural justice and the inherent power under Section 151 C.P.C. have intrinsic application to all judicial or quasi-judicial tribunals, allowing the court to permit procedures even in the absence of explicit rules.
Headnote:
Inherent Power - Motor Accidents Claims Tribunal Rules - Summary
Fact of the Case:
The court discussed the applicability of the Civil Procedure Code to proceedings before the Claims Tribunal and the inherent power of the court to permit procedures in the absence of explicit rules.
Finding of the Court:
The court found that the principles of natural justice and the inherent power under Section 151 C.P.C. have intrinsic application to all judicial or quasi-judicial tribunals, even if the specific provisions may not apply.
Issues: The issues revolved around the applicability of the Civil Procedure Code to proceedings before the Claims Tribunal and the authority of the court to permit procedures not explicitly provided for in the rules.
Ratio Decidendi: The court held that the principles of natural justice and the inherent power under Section 151 C.P.C. apply to all judicial or quasi-judicial tribunals, allowing the court to permit procedures even in the absence of explicit rules.
Final Decision: The revision petitions were dismissed, and the parties were ordered to bear their own costs.
2. An authority helpful upon this point of view is M/s Groz Beckert Sabool Ltd. v. Jupiter General Insurance Co. Ltd., AIR 1965 Punj 477, which was also a proceeding for a claim for compensation for an accident, under the Motor Vehicles Act. The learned Judge held that, in the absence of a positive authority like the Civil Procedure Code, the Tribunal should have reasoned by analogy. as nearly as possible to such provisions.
3. In the present matter it is really not necessary to go so far. While there is no provision or rule, as such for the insurance company (respondent) to file an additional written statement, the insurance company is always at liberty to put forward a ground of law in defence. That is permitted, because there can be no bar or prohibition to a legal defence, precisely as it cannot be argued that a clerical error in the proceedings cannot be corrected by a party even in the absence of an explicit provision; obviously, to deny such relief would be opposed to the principles of natural justice. In the present case, in two of the claims, the proprietor of the concerned vehicle has taken the plea that, prior to the date of the accident, the vehicle was transferred to another person, so that there was no subsisting legal liability on his part.
It is not disputed before me that in accordance with the proposition of law enunciated by the Division Bench in M. Bhoopathy v. M. S. Vijayalakshmi, 1965-2 Mad LJ 466 : (AIR 1966 Mad 244), the transfer of the ownership of the vehicle will have the legal consequence of terminating the contract of insurance, so that the company is no longer liable under that policy. In the present case, therefore, it is always open to the company to urge that if such transfer be true, the company has no legal liability in respect of the claims for damages arising out of the
accident. Strictly speeking, no additional written statement to this effect is necessary, since it is a pure question of law related to a pleading of fact, which is already on the record.
4. The revision petitions are accordingly dismissed, in the light of these observations. The parties will bear their own costs.