High Court Of Madhya Pradesh
T. N. SINGH
UNITED INDIA INSURANCE COMPANY LTD., GWALIOR - Appellant
Versus
SUKHIABAI - Respondents
M. A. 108 Of 1990
Decided On : 05/07/1991
MOTOR VEHICLES ACT - S. 140, 149, 168, 170, 173 - INSURANCE - LIABILITY OF INSURER - APPORTIONMENT OF NO FAULT LIABILITY - JURISDICTION OF CLAIMS TRIBUNAL - INHERENT JURISDICTION - RESTITUTION.
Fact of the Case:
In a motor vehicle accident involving two vehicles, the Claims Tribunal passed an interim award under S. 140 of the Motor Vehicles Act, 1988, holding the insurer of one of the vehicles liable to pay compensation to the injured claimant. The insurer challenged the award on the ground that the Tribunal failed to apportion the "no fault liability" between the owners of the two vehicles involved in the accident.
Finding of the Court:
The court held that the Claims Tribunal was not required to apportion the "no fault liability" at the stage of passing the interim award under S. 140. The liability under S. 140 is a joint and several liability of the owners of the vehicles involved in the accident, and the insurer of one of the vehicles is statutorily liable to discharge that liability under S. 149. However, the court clarified that the insurer would have the right to claim exoneration or reimbursement from the owner of the insured vehicle or from the owner of the other vehicle involved in the accident, if it is found that the entire liability under S. 140 was not its own.
Issues: 1. Whether the Claims Tribunal was required to apportion the "no fault liability" between the owners of the two vehicles involved in the accident at the stage of passing the interim award under S. 140 of the Motor Vehicles Act, 1988? 2. Whether the insurer had the right to claim exoneration or reimbursement from the owner of the insured vehicle or from the owner of the other vehicle involved in the accident?
Ratio Decidendi: 1. The court interpreted S. 140 of the Motor Vehicles Act, 1988, and held that the provision does not require the Claims Tribunal to apportion the "no fault liability" between the owners of the vehicles involved in the accident at the stage of passing the interim award. The liability under S. 140 is a joint and several liability of the owners of the vehicles, and the insurer of one of the vehicles is statutorily liable to discharge that liability under S. 149. 2. The court relied on the inherent jurisdiction of the Claims Tribunal to adjust equities between parties while disposing of the claim for compensation under S. 168 of the Act. The court held that the insurer would have the right to claim exoneration or reimbursement from the owner of the insured vehicle or from the owner of the other vehicle involved in the accident, if it is found that the entire liability under S. 140 was not its own.
Final Decision: The court dismissed the appeal filed by the insurer and upheld the interim award passed by the Claims Tribunal. The court directed the insurer to deposit the balance amount of the award within two weeks, which would be disbursed to the claimant. The court also clarified that the insurer would be entitled to claim adjustment of inter se liability vis-a-vis the owner of the other vehicle involved in the accident when the final award under S. 168 of the Act is passed.
( 1 ) IN this appeal u/s. 173, Motor Vehicles Act, 1988, for short, the Act, the Award passed by Claims Tribunal under S. 140 is challenged by the Insurer on a short ground. The question is, if it was incumbent on the said Tribunal to apportion or "specify" in the impugned award the "no fault liability" arising out of accident in which two motor vehicles were used so that the entire amount is not required to be paid by the Insurer who is required to discharge that liability of owner of one of the vehicles only.
( 2 ) WHEN the appeal came up for admission, I entertained doubt if it could be admitted as the appellant is required as per S. 173 to make deposit of Rs. 25,000/ - or 50% of the amount awarded, whichever is less. In the instant case, claimant/respondent No. 1 has been awarded Rs. 7,500/ -. Although my attention was drawn to this Court's decision in Jaswant Rao v. Kamlabai, AIR 1990 Madh Pra 354, rendered at the Indore Bench and it was pointed out that the impugned award being passed on 10-1-1989, no deposit need be made as the new Act came into force only from 1-7-1989, I failed to persuade myself to accept the law laid down to be correct. Happily, appellant having duly deposited Rs. 3,750/-, being 50% of the amount of the award, I am relieved of the anxiety. Otherwise, it might have been necessary for me to make a reference to Full Bench for reconsideration of the law laid down in the D. B. decision in aforesaid Jaswant Rao's case (AIR 1990 Madh Pra 354 ). I may, however, still observe that inspiration for that decision came from a chain of other decisions of this Court on the scope of S. 6, General Clauses Act, 1897 (referred in S. 217 (4) of the Act ). But, all those decisions have been overruled recently in Babulal's case AIR 1990 Madh Pra 317 (FB ).
( 3 ) ON facts, it is undisputed that two vehicles were involved in the accident and the claimant who sustained injury and has got an interim award for that, was travelling in bus No. C. P. H. 8440, owned by respondent No. 3, Madhya Pradesh State Road Transport Corporation, for short, the "corporation". The bus collided with truck bearing registration No. CIW 7432 owned by respondent No. 2, but the truck is admittedly insured with the appellant. Shri Johri, appellant's counsel, contended that case of collision prima facie made it a case of contributory negligence of the vehicles involved in the accident and that had to be determined by the Tribunal when passing award finally u/s. 168 of the Act. Still, even at the stage of making interim award u/s. 140, the Tribunal was not excused of its duty to apportion "no fault liability" between the owners of the two vehicles involved in the accident and that duty was ingrained in the provision under which the award was passed and that the expression used in S. 140 (1), "jointly and severally" explicitly referred to that duty.
( 4 ) COUNSEL for the Corporation (respondent No. 3), Shri Khot, conceded that he failed to lay hand on any reported decision in regard to the controversy mooted in the appeal. However, he cited certain decisions to which I shall advert in due course. For the present, however, I must state at once that the impugned award follows substantially the statutory mandate. The sum awarded is made payable by non-applicants Nos. 2 and 3, namely, the Insurer and the Corporation; the other non-applicant, Bhagwandas, who was owner of the truck insured with the appellant has been left out. In any case, that minor flaw in the award does not invalidate it for the reason that the owner's liability is passed on statutorily to the Insurer in terms of S. 149 (1) of the Act and as such, the Tribunal did not act illegally or arbitrarily or without jurisdiction in naming the Insurer as the person who had to discharge the liability under the award because he had to discharge the same in terms of the said provision.
( 5 ) IN my view, there is material difference between the phraseology used by the Legislature in Ss.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.