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1999 Supreme(MP) 649

High Court Of Madhya Pradesh
D. M. DHARMADHIKARI,usha SHUKLA
ORIENTAL INSURANCE CO.LTD - Appellant
Versus
GOPAL SINGH - Respondents
M. A. 217 Of 1997
Decided On : 09/06/1999

Advocates Appeared:
Amrit Ruprah, ASHOK LALVANI, N.S.Rupesh, SANJAY KUMAR AGARWAL

The deposit of interim compensation under section 140 of the Motor Vehicles Act, 1988, merges in the final award under section 166, and therefore, the payment of interim compensation can be considered as a deposit for the purpose of preferring an appeal under section 173.

Headnote:

MOTOR VEHICLES ACT, 1988 - SECTION 173 - INSURANCE COVERAGE - DEPOSIT OF INTERIM COMPENSATION - INTERPRETATION - MAINTAINABILITY OF APPEAL - ENHANCEMENT OF COMPENSATION.

Fact of the Case:

In a motor accident case, the insurance company challenged the liability for compensation on the ground of no insurance coverage at the time of the accident. The claimants sought enhancement of compensation for the deaths of two persons in the accident.

Finding of the Court:

The court held that the deposit of interim compensation under section 140 of the Motor Vehicles Act, 1988, merges in the final award under section 166, and therefore, the payment of interim compensation can be considered as a deposit for the purpose of preferring an appeal under section 173. The court also held that the insurance company was liable for compensation as the vehicle was insured at the time of the accident.

Issues: 1. Whether the deposit of interim compensation under section 140 of the Motor Vehicles Act, 1988, can be considered as a deposit for the purpose of preferring an appeal under section 173? 2. Whether the insurance company was liable for compensation in the absence of insurance coverage at the time of the accident?

Ratio Decidendi: 1. The court interpreted section 173 of the Motor Vehicles Act, 1988, and held that the expression "unless he has deposited with it" should be read in conjunction with the expression "in the manner directed by the High Court". This means that the High Court has the discretion to direct that the interim compensation already paid in the Tribunal would be the requisite deposit for the purpose of preferring an appeal. 2. The court examined the evidence and found that the insurance company had issued a cover note granting insurance coverage for the vehicle from midnight of 28th April 1990 to midnight of 28th April 1991. The accident occurred on 29th April 1990 at about 6.30 a.m., which was within the period of insurance coverage. Therefore, the insurance company was liable for compensation.

Final Decision: The court dismissed the appeals filed by the insurance company and allowed the appeals filed by the claimants, enhancing the compensation for the deaths of the two persons.

D. M. DHARMADHIKARI, J.

( 1 ) THIS appeal and the connected appeal Misc. Appeal no. 218 of 1997 between the same parties under section 173 of the Motor Vehicles act, 1988 preferred by the insurance company has been filed against the common award dated 2. 1. 1997 passed in two Claim petition Nos. 77 and 78 of 1990 respectively arising out of the same accident by the First Addl. Motor Accidents Claims tribunal, Katni and is being decided by this common judgment with connected appeal M. A. No. 306 of 1997, Gopal Singh v. Rajendra Kumar Joli and M. A. No. 307 of 1997, Gopal Singh v. Rajendra Kumar joli, filed by the claimants in the two claim cases. The appellant insurance company in this appeal and in connected M. A. No. 218 of 1997 filed by it, prays for a direction that it be absolved from the liability for payment of compensation on the ground that on the date and time of accident, there was no insurance coverage. The other two connected appeals M. A. Nos. 306 and 307 of 1997 have been filed by the claimants seeking enhancement of compensation awarded for two deaths in the accident.

( 2 ) ON 29. 4. 1990 in the early hours of morning at about 6. 30 Nanhi alias Durgesh, wife of claimant Gopal Singh with her daughter Shweta and son Abhishek were going in Fiat car No. UAI 3142 from jabalpur to Kanpur. In the course of their journey, at some place within the jurisdiction of Katni court, truck No. MKA 1004 coming from opposite direction collided with the car resulting in death of Nanhi alias Durgesh aged 32 years and child abhishek aged 4 years. The truck was owned by Rajendra Kumar Joli, respondent No. 3, driven by Ravi Kumar Sahni, respondent No. 4 and insured by the appellant insurance company.

( 3 ) IN the two separate claim petitions filed by the claimant Gopal Singh and his daughter Shweta for death of Nanhi and abhishek, the Claims Tribunal rejected the plea taken by the insurance company that there was no insurance coverage to the truck involved in the accident on the date and time mentioned above. On examining the contents of the insurance cover note and scrutinising the oral evidence led on behalf of the insurance company, the claims Tribunal held the insurance company liable jointly with owner and driver for payment of compensation,

( 4 ) ON the basis of evidence led by the claimants, the Claims Tribunal awarded a total sum of Rs. 73,200 for the death of abhishek and a sum of Rs. 70,200 for the death of Nanhi alias Durgesh.

( 5 ) WE shall first take up for decision misc. Appeal Nos. 217 and 218 of 1997 filed by the insurance company seeking its exoneration from the liability towards compensation. In the appeals preferred by the insurance company, we shall first take up for consideration the preliminary objection raised against the appeals on behalf of the owner and driver of the truck involved in the accident.

( 6 ) MR. Sanjay K. Agarwal, the learned counsel appearing for the respondents, raising a preliminary objection as to the 'maintainability of the appeals filed by the insurance company submits that over and above the interim compensation of rs. 28,526 in each of the two appeals, no further amount as required by the provisions of section 173 of the Act, as a precondition of preferring appeal has been deposited by the insurance company and the appeals, therefore, deserve to be summarily dismissed on the above ground of non-deposit of the requisite amount under the Act as a pre-condition of preferring the appeal.

( 7 ) LEARNED counsel Mr. N. S. Ruprah appearing for the insurance company in the two appeals preferred by it invites attention of this court to the order-sheets dated 17. 3. 1997. This court by order dated 17. 3. 1997 passed in each of the two appeals on the statement made on behalf of the insurance company that 'interim compensation in the sum of Rs. 28,526 had already been paid'; admitted the appeal and stayed the recovery of the balance amount of compensation awarded by the tribunal in each of the two claim




















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