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2019 Supreme(Ori) 288

IN THE HIGH COURT OF ORISSA, CUTTACK
A.K. Rath, J.
State Manager, ICICI Lombard General Insurance Company Ltd., Bhubaneswar - Appellant
Vs.
Sarita Agrawal And Others - Respondents
Motor Accident Claims Appeal No. 470 of 2011
Decided On : 11-01-2019

Advocates Appeared:
Jayasankar Mishra, Adv., S.S. Sahoo, Adv.

The main legal point established is that the provisions of Order 9 Rule 13 CPC apply to the proceeding under Section 166 of the M.V. Act, and the tribunal cannot enhance the award without further evidence.

Headnote:

Motor Vehicles Act - Compensation - Section 166 - Rule 20 of Orissa Motor Vehicles (Accidents Claims Tribunal) Rules, 1960 - [Section 166, Rule 20]

Fact of the Case:

The claimants filed for compensation under Section 166 of the Motor Vehicles Act for the death of a family member in a car accident. The insurer contested the liability, and the tribunal initially awarded Rs. 18,97,000, which was later set aside and increased to Rs. 19,85,500.

Finding of the Court:

The court found that the provisions of Order 9 Rule 13 CPC apply to the proceeding under Section 166 of the M.V. Act, and the tribunal committed a manifest illegality in enhancing the award without further evidence.

Issues: The issues included the liability of the insurer, the application of Order 9 Rule 13 CPC, and the justification for enhancing the award amount.

Ratio Decidendi: The court held that the provisions of Order 9 Rule 13 CPC apply to the proceeding under Section 166 of the M.V. Act, and the tribunal's enhancement of the award without further evidence was a manifest illegality.

Final Decision: The award amount was reduced to Rs. 18,97,000 from Rs. 19,85,500, and the appeal was allowed to that extent.

JUDGMENT :

A.K. Rath, J.

Aggrieved by and dissatisfied with the award dated 04.11.2010 passed by the learned M.A.C.T., Kalahandi-Nuapada, Bhawanipatna in M.A.C. No. 01 of 2008, the insurer has filed the present appeal.

2. Claimants-Respondent nos.1 to 6 filed an application under Section 166 of the Motor Vehicles Act (in short, 'the M.V. Act') for compensation before the learned Tribunal. The case of the claimants was that the Manohar Lal, husband of claimant no.1, father of claimant nos.2 to 6, was travelling in an indica car bearing registration No.OR-08-C-7923 from Saintala to Sambalpur. On the way, the vehicle met with an accident, as a result of which, he succumbed to the injuries. The deceased was forty one year old at the time of accident. He was a business man and earning more than Rs. 3.6 lakhs per annum.

3. Though notice was issued to the owner of the vehicle, opposite party no.1, but he had chosen not to contest the case and as such set ex parte. Opposite party no.2, insurer filed a written statement denying liability. It was stated that the deceased was travelling in a private car. The insurer had violated the terms and conditions of the policy. It is exonerated from liability. Parties led evidence. On an anatomy of pleadings and evidence on record, learned Tribunal awarded the amount of Rs. 18,97,000/-. While matter stood thus, the opposite party no.1 filed CMA No. 17 of 2009 under Order 9 Rule 13 CPC to set aside the ex parte award. Learned Tribunal set aside the award on 23.07.2009. Thereafter opposite party no.1 filed a written statement stating therein that the deceased was a hired passenger in his car. The vehicle was validly insured with the insurer- opposite party no.2. The insurer has paid damages to him for the damages of the vehicle.

4. Stemming on the pleadings of the parties, learned Tribunal framed three issues. Parties led evidence, oral and documentary. On an assessment of the evidence on record and pleadings, learned Tribunal awarded Rs. 19, 85,500/- with interest @ 6% per annum from the date of claim application and directed the insurer to pay the same.

5. Heard Mr. Jayasankar Mishra, learned counsel for the appellant and Mr. Sasanka Sekhar Sahoo, learned counsel for the respondent nos.1, 4, 5 and 6. None appears for respondent no.2 and respondent no.3.

6. Mr. Mishra, learned counsel for the appellant submits that any person, aggrieved by an award of the Claims Tribunal, may file an application under Section 173 of the M.V. Act before the High Court.

In the event the appeal is filed before this Court, he has to deposit Rs. 25,000/- or fifty percent of the amount so awarded. Learned Tribunal awarded the amount of Rs. 18,97,000/- with 6% interest and directed the owner to pay the same. Thereafter, the owner of the vehicle filed an application under Order 9 Rule 13 CPC to set aside the ex parte award. Learned Tribunal set aside the ex parte award and observed that the amount shall be paid by the insurer and the same shall be recovered from the owner of the vehicle. The provisions contained in Order 9 Rule 13 CPC does not apply to a proceeding under Sec.166 of the M.V. Act. Further after the award was set aside, on the self-same evidence, learned Tribunal awarded Rs. 19,85,500/-. There is no rhyme or reason to enhance the award amount from Rs. 18,97,000/- to Rs. 19,85,500/-.

7. Per contra, Mr. Sahoo, learned counsel for the respondent nos.1, 4, 5 and 6 submits that the deceased was the sole bread earner of the family. The family received a set back after the death. Initially, the award was passed, but the same was set aside at the behest of the owner. The award amount is just and proper.

8. Section 173 of the M.V. Act provides that any person aggrieved by an award of a Claims Tribunal may, within ninety days from the date of the award, prefer an appeal to the High Court. It further provides that no appeal by the person who is required to pay any amount in terms of such award shall be entertained by the High Cou

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