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IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
ALOK KUMAR VERMA, J.
The New India Assurance Company – Appellant
Versus
Hema Verma and Others – Respondents
Appeal From Order No. 171 of 2022
Decided On : 11-05-2024
MOTOR VEHICLES ACT - MOTOR ACCIDENT CLAIM - The court addressed the appeal under Section 173 of the Motor Vehicles Act, 1988, challenging the award of compensation for a motor accident. The parties reached a compromise, wherein the insurer agreed to pay a reduced amount, reflecting the resolution of their disputes. The court emphasized the importance of voluntary settlements in such cases, leading to the decision based on the compromise application.
Fact of the Case:
The appeal was filed by the insurer against the award of Rs. 56,65,525/- granted by the Motor Accident Claims Tribunal in favor of the claimant. The insurer contested the amount awarded.
Finding of the Court:
The court found that both parties had settled their disputes amicably and submitted a compromise application, which was verified and accepted by the court.
Issues: Whether the appeal could be decided based on the compromise reached between the parties and the implications of such a settlement on the awarded compensation.
Ratio Decidendi: The court held that voluntary settlements between parties in motor accident claims are valid and can be accepted, thereby allowing the appeal to be decided based on the terms of the compromise.
Result: The appeal was decided in accordance with the compromise, with the insurer agreeing to pay Rs. 47,59,821/- after deductions, and the statutory amount to be remitted to the Tribunal.
JUDGMENT :
ALOK KUMAR VERMA, J.
1. The present Appeal under Section 173 of the Motor Vehicles Act, 1988 has been filed by the insurer challenging the Award dated 05.04.2022, passed by learned Motor Accident Claims Tribunal/District Judge, Nainital in Motor Accident Claim Petition No. 158 of 2019, by which, learned Tribunal has awarded a total sum of Rs.56, 65,525/- along with an interest at the rate of 6 percent per annum from the date of petition till its actual payment.
2. Today, before the National Lok Adalat, Mr. Ramesh Chandra Sanguri, the Manager In-charge (Legal) is present with Mr. D.C.S. Rawat, learned counsel for the appellant/ Insurance Company.
3. Smt. Hema Verma, the respondent no. 1, is present in-person with Mr. Tarun Pandey, Advocate.
4. Both the parties submitted that they have settled their disputes, and after resolving their disputes, they have filed a Compromise Application today.
5. As per the Compromise, Insurance Company is ready to pay Rs. 47,59,821/- after deducting the amount already being paid to the claimants, if any. The said amount shall be deposited by the appellant within a period of six weeks from today. The statutory amount, deposited by the appellant, shall also be remitted before the concerned Tribunal.
6. The respondent no. 1-claimant undertakes to pay Rs. 10,00,000/- (Rupees ten lakh) to respondent no. 3-Smt. Nandi Verma.
7. Both the parties submitted that the Compromise Application has been filed with their free will and without any pressure.
8. Both the parties have requested to decide the present Appeal on the basis of the Compromise.
9. The Compromise Application, filed today, is verified.
10. Present Appeal (AO No. 171 of 2022) is decided on the basis of the compromise.
11. The Compromise Application will form part of this order.
Voluntary settlements in motor accident claims are enforceable and can lead to a resolution of disputes without further litigation.
The Court's decision was based on the compromise reached by the parties, highlighting the significance of mutual agreement in settling legal disputes.
The claimants are entitled to compensation as per the insurance contract, limited to Rs.1 Lakh, with an interest rate adjustment to 9% per annum.
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