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2023 Supreme(Ori) 566

IN THE HIGH COURT OF ORISSA AT CUTTACK
SANJAY KUMAR MISHRA, J.
ICICI Lombard General Insurance Company Ltd. Sambalpur – Appellant
Versus
Susama Sahoo and Others – Respondents
W.P. (C) No. 34077 of 2022
Decided On : 03-11-2023

Advocates Appeared:
For the Appellant : G.P. Dutta
For the Respondent: S. Mohapatra

Dismissal of application to set aside an ex-parte award in a motor accident claim cannot solely rely on delay when a prior concession was made by the opposing party, warranting examination of justice and fairness.

Headnote:(A) Motor Vehicles Act, 1988 - Section 163-A - Writ Petition challenging the dismissal of application under Order-9 Rule-9 C.P.C. for setting aside ex-parte award - The court emphasized that mere delay does not warrant rejection if the parties have previously stipulated for restoration, as this can result in a miscarriage of justice. (Paras 2, 10, 18, and 21)

(B) Delay - Petition dismissed solely on grounds of long delay - The court indicated that explanation for delay must be considered, especially when the opposing party had previously conceded to a restoration. (Paras 12, 20)

Facts of the case:
The Petitioner, an insurance company, challenged the dismissal of its application to set aside an ex-parte award in a motor accident claim, which had directed it to pay the claimants Rs.19,82,068/- with interest. After failing to take necessary steps, its application was dismissed for default.

Findings of Court:
The order dismissing the application was set aside, allowing the insurance company to contest the claim, subject to the payment of Rs.1,00,000/- as costs to the claimants, with specific directions for proceeding with the original motor accident claim tribunal case.

Issues: The primary issues included whether the dismissal of the application for setting aside the ex-parte award was justified given the circumstances, including the lack of written objection from the claimants.

Ratio Decidendi: The court held that failure to enter appearance due to the fault of a lawyer should not prejudice the party, particularly when the opposing party had previously agreed to set aside the award under certain conditions.

Result: Writ Petition allowed, and the order dated 30.11.2022 was set aside subject to payment of costs.

Table of Content
1. factual background of the case. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. court's analysis of procedural fairness. (Para 9 , 10 , 15 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
3. arguments regarding procedural delays. (Para 11 , 12 , 13 , 14 , 16 , 17 , 18)
4. final conclusions and orders. (Para 30 , 31 , 32)

JUDGMENT :

SANJAY KUMAR MISHRA, J.

1. The Writ Petition has been preferred by the Petitioner/Insurance Company challenging the Order dated 30.11.2022 (Annexure-1) passed by the District Judge-Cum-MACT, Boudh, in I.A. No.01 of 2022 (arising out of I.A. No.04 of 2015 corresponding to MAC No.11 of 2011).

2. The factual matrix, which led to filing of the Writ Petition is that the present Opposite Party Nos.1 to 3 (claimants before the court below) filed a claim application on 27.12.2011 under Section 163 -A of the Motor Vehicles Act, 1988, shortly M.V. Act, before the 3rd Motor Accident Claim Tribunal-Cum-Additional District & Sessions Judge, which was registered as MAC No.11 of 2011.

3. Though notice was duly served on the Petitioner/Company, it failed to appear before the Tribunal. Hence, an ex-parte award was passed against the Petitioner/Company on 14.07.2014, thereby allowing the claim application of the Opposite Party Nos.1 to 3. It was directed to pay a sum of Rs.19,82,068/- to the Opposite Party Nos.1 to 3 (claimants before the court below) with 7% interest per annum from the date of filing the claim application till the date of actual payment. When an execution case was filed for non-compliance of the said award, on getting notice from the Tribunal and knowing about the said ex-parte award, the Petitioner/Company filed an application under Order-9 Rule-13 C.P.C. for setting aside the ex-parte award, which was registered as I.A. No.4 of 2015.

4. The Opposite Party Nos.1 to 3 (claimants before the court below) entered appearance and the learned Counsel for the said Opposite Parties made a submission before the Court below on 14.07.2017 that they have no objection to the prayer for setting aside the ex-parte award, subject to payment cost of Rs.1,00,000/-. However, the matter got adjourned to 17.08.2017 for further hearing in the said matter.

5. Thereafter, the matter proceeded further. When the matter was posted to 04.12.2017, on the said date it came to the notice of the court below that the service of the notices on Opposite Party Nos.4 & 5 (Opposite Party Nos.1 & 2 in M.A.C. No.11 of 2011) has not been made sufficient till the said date. Hence, instead of proceeding further to consider the prayer made in I.A. No.04 of 2015, the court below directed the present Petitioner (Opposite Party No.3 before the court below) to take steps against the said Opposite Party Nos.4 & 5 for their appearance, being the owners of the offending vehicles.

6. However, as the Petitioner did not comply the said order dated 04.12.2017 enabling the Tribunal to issue notice to the said Opposite Party Nos.4 & 5 for their appearance, I.A. No.04 of 2015 was dismissed for default on 26.07.2018.

7. Knowing about the said dismissal order dated 26.07.2018, again a Petition was filed under Order-9 Rule-9 read with Section 151 of the C.P.C. by the present Petitioner Company, which was registered as I.A. No.01 of 2022, praying therein to set aside the dismissal order dated 26.07.2018 passed in I.A. No.04 of 2015 along with an application for condonation of delay, enabling the Petitioner/Company to contest the M.A.C. No.11 of 2011.

8. Though no written objection was filed in response to prayer made in I.A. No.01 of 2022, learned Counsel for the Opposite Party Nos.1 to 3 (claimants before the court below) orally objected to the said prayer on the ground that there is a gross delay in filing the said petition and delay has not been properly explained.

9. Ultimately, vide Order dated 30.11.2022, I.A. No.01 of 2022 was dismissed on the ground of long delay and not explaining the said delay properly in a convincing manner so as to enable the Tribunal to

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