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1985 Supreme(P&H) 382

PUNJAB & HARYANA HIGH COURT
M.M.Punchhi, J.
Oriental Insurance Co.Ltd., Chandigarh
Versus
Sitla Parshad
First Appeal First Order No. 978 of 1984,
Decided On : AUGUST 7, 1985

The Insurance Company is liable to indemnify the owner of the vehicle for the interim compensation paid to the claimant under Section 92A of the Motor Vehicles Act, subject to the owner reimbursing the Insurance Company in the event the Insurance Company gets absolved of the liability.

Headnote:

MOTOR VEHICLES ACT - SECTION 92A - INTERIM COMPENSATION - LIABILITY OF INSURANCE COMPANY - OWNER OF VEHICLE NOT LIABLE TO PAY COMPENSATION - INSURANCE COMPANY ENTITLED TO RECOVER AMOUNT PAID FROM OWNER.

Fact of the Case:

The respondent, Sitla Parshad, filed a claim application under the Motor Vehicles Act before the Tribunal for compensation due to an injury sustained in a motor accident. The Tribunal awarded interim compensation of Rs.7,500/- to the respondent under Section 92A of the Act, directing the Insurance Company, the appellant, to make payment.

Finding of the Court:

The court held that Section 92A of the Motor Vehicles Act creates a fixed liability of a quantified sum even when no fault is found. The Insurance Company is liable to indemnify the owner of the vehicle for the interim compensation paid to the claimant under Section 92A, subject to the owner reimbursing the Insurance Company in the event the Insurance Company gets absolved of the liability.

Issues: Whether the Insurance Company is liable to pay interim compensation under Section 92A of the Motor Vehicles Act, even if the owner of the vehicle is not liable to pay compensation.

Ratio Decidendi: The court relied on the decision in Oriental Fire and General Ins. Co. Ltd. V/s. Beasa Devi (AIR 1985 Punj and Har 96) to hold that Section 92A of the Motor Vehicles Act provides for an immediate aid to the hapless and helpless victims of motor accidents. The Insurance Company is required to pay the interim compensation to the claimant forthwith, and thereafter investigate and inquire into the correctness of any objections raised by the Insurance Company or the owner of the offending vehicle.

Final Decision: The court dismissed the appeal filed by the Insurance Company, holding that the Insurance Company is liable to pay interim compensation under Section 92A of the Motor Vehicles Act, even if the owner of the vehicle is not liable to pay compensation.

Judgment

1. This first appeal against order raises an interesting question of law.

2. As a result of a motor accident Sitla Parshad, the respondent herein, received an injury, so as to cause disablement of a limb. He filed a claim application under the provisions of the Motor Vehicles Act before the Tribunal appointed under the Act. During the course thereof, the Tribunal passed an order on August 30, 1984, under S.92A of the Motor Vehicles Act, awarding interim compensation of Rs.7,500/- to the respondent, directing the Insurance Company, the appellant, to make payment thereof. It is to challenge that order that this appeal has been filed.

3. The primary contention of Mr. Gandhi, learned counsel for the Insurance-Company-appellant is that in the meantime the parent claim application has also been decided by the Tribunal, though incidentally against the appellant, and when an appeal has been preferred by it in this Court, it would be fair that the hearing of this appeal is deferred till that appeal is decided. The prayer is pregnant with the fear that if the present order gets confirmed, it might have the effect of holding for good the Insurance Company as liable to pay damages. But for the apprehension expressed, Mr. Gandhi has been unable to urge anything as to why S.92-A of the Act is not attracted which fixes liability on the owner of the vehicle without fault in certain cases. And undisputedly, present is a case of disablement attracting that provision. He cannot be allowed to say that the Insurance Company is not to indemnify, even though in an interim way, the owner for such a liability in view of a decision of this Court in Oriental Fire and General Ins. Co. Ltd. V/s. Beasa Devi 1985 Acc CJ 1 : (AIR 1985 Punj and Har 96). The Bench has observed in that regard as follows (at P. 101):-

" We are of the view that provision of S. 92A is a piece of beneficial and ameliorative legislation providing for an immediate aid to the hapless and helpless victims of the motor accidents. The moment it is either admitted by the owner of the vehicle that his vehicle was involved in the accident or from the evidence adduced on the record, the Tribunal positively holds that vehicle of the owner in question was involved in that accident, if he denied that fact and then if the Tribunal comes to a further prima facie conclusion that the vehicle was insured, then the Tribunal without inquiring into correctness of other objections that may be raised by the insurance company would be entitled to make the award under S.92-A and require the insurance company to pay the given amount to the claimants forthwith and thereafter investigate and inquire into the correctness or otherwise of the other objections that are raised either by the insurance company or by the owner of the offending vehicle.

10. In the event of the Tribunal coming to the conclusion for valid reasons that the owner of the vehicle was not liable to pay any compensation on the principle of fault liability, then obviously no compensation is to be awarded on that score to the claimants under S.110-B. Similarly, in the event of the Tribunal holding that the insurance company had proved such objections as under law avoided its responsibility to indemnify the owner of the offending vehicle totally, then the Tribunal in the final award by virtue of provisions of sub-sec.(4) of S.96 would direct the owner of the offending vehicle to pay to the insurance company the amount which the insurance company had paid to the claimants in pursuance of the award made under S.92-A of the Act."

At this juncture, it would be worthwhile to reproduce here S.92-A :-

"92-A. Liability to pay compensation in certain cases on the principle of no fault.- (1) Where the death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicles, the owner of the vehicle shall, or, as the case may be, the owners of the vehicles shall, jointly and severally, b







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