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1997 Supreme(MP) 278

Dipak Misra, J.
New India Assurance Co. Ltd.
vs
Smt. Prabha Jain And Ors.
Decided On : 6 May, 1997

An insurance company is entitled to recover the amount paid under section 140 of the Motor Vehicles Act, 1988, if it is exonerated from liability in the final award passed by the Motor Accident Claims Tribunal.

Headnote:

MOTOR VEHICLES ACT, 1988 - SECTION 140, 149 - INTERIM RELIEF - RECOVERY OF AMOUNT PAID - INSURANCE COMPANY ENTITLED TO RECOVER AMOUNT PAID UNDER SECTION 140 IF EXONERATED FROM LIABILITY IN FINAL AWARD.

Fact of the Case:

Insurance company challenged the award passed by the Motor Accident Claims Tribunal, Chhindwara, directing it to pay compensation under section 140 of the Motor Vehicles Act, 1988 (Act) to the claimants for the death of Dr. Santosh Jain, who was driving his own car and met with an accident. The Tribunal had earlier dismissed the main application filed under section 166 of the Act, holding that the claimants were not entitled to any compensation.

Finding of the Court:

The court held that the insurance company was entitled to recover the amount paid under section 140 of the Act as it had been exonerated from liability in the final award passed by the Tribunal. The court relied on the provisions of section 149(4) of the Act, which provides for the refund of the amount deposited by the insurance company towards no-fault liability if the Tribunal finds that the insurance company is not liable to compensate the insured.

Issues: Whether the insurance company was entitled to recover the amount paid under section 140 of the Act, even though the main application filed under section 166 of the Act was dismissed.

Ratio Decidendi: The court held that the interim relief granted under section 140 of the Act is subject to the final adjudication of the main application filed under section 166 of the Act. If the insurance company is exonerated from liability in the final award, it is entitled to recover the amount paid under section 140 of the Act.

Final Decision: The court allowed the appeal filed by the insurance company and set aside the award passed by the Tribunal directing it to pay compensation under section 140 of the Act.

ORDER

Dipak Misra, J.

1. The insurer, New India Assurance Company Ltd. calls in question the propriety of the award dated 30th September, 1994 passed in Claim Case No. 18/93 by the Motor Accident Claims Tribunal, Chhindwara.

2. The facts as have been unfolded from the materials on record are that the respondents as claimants filed an application under section 166 of the Motor Vehicles Act, 1988 (hereinafter referred as Act') forming the subject matter of claim case No. 18/93 claiming compensation for the death of Dr. Santosh Jain. It was put forth in the application that the deceased was himself driving his Fiat car bearing registration No. MP-02/4444 on 7th June, 1993 from Narsinghpur to Chhindwara. The vehicle dashed against a tree and as a consequence thereof said Dr. Santosh Jain was injured and ultimately met his end. Along with the application preferred under section 166 of the Act, an application under section 140 of the Act was submitted claiming compensation under the said provision. The said application was resisted by the Insurance Company specifically advancing a plea that it had not insured any occupant of the said car and the deceased was himself the owner and was driving the vehicle in question and, therefore, no liability could be fastened on the insurer in absence of any special contract to that effect. Without scrutinising the legal liability of the insurer the Tribunal allowed the application preferred under section 140 of the Act directing the Insurance Company to pay an amount of Rs. 25,000/- to the appellant: The said interim award was challenged before the Court on M. A. No. 830/94. While the said appeal was pending for adjudication before this Court, the Tribunal took up the matter instituted under section 166 of the Act and came to hold that the claimants were not entitled to any compensation and accordingly rejected their application. However, while dismissing the main application the Tribunal held that the submission of the Insurance Company that in view of the dismissal of the application under section 166 of the Act, it was entitled to recover the awarded amount under section 140 of the Act was not tenable in law. The affirmation of the interim award passed under section 140 of the Act is the cause of grievance of the present appellant.

3. I have heard Mr. Ruprah, learned counsel for the appellant and Mr. Diwakar for the claimants/respondents. On a perusal of the record it is clear as day that the objections raised at the time of passing of the award under section 140 of the Act were not considered and, therefore, the same was called in question in this Court in M. A. No. 830/94. As in the meantime the main award was passed the appeal preferred before this Court was rendered infructuous. This fact is apparent from the order dated 25-2-1997 passed in this appeal. It is distinctly perceptible that while disposing of the main application the Tribunal has exonerated the Insurance Company from the liability. The question that falls for consideration is whether exoneration at the stage of final adjudication would entitle the Insurance Company to recover the amount paid while complying with the award passed under section 140 of the Act.

4. On reading of the relevant provisions of the Act, it is quite clear that the earlier provision 92-A as well as section 140 of the present Act relates to grant of an interim relief. Victims of an accident who approach the Tribunal for getting compensation, the inquiries contemplated under this provision only relate to 'prima facie' view of the matter and detailed inquiry at that stage is not called for. In fact, the same is contrary to the intention of the statute. But an interim order or interim relief granted is subject to the final adjudication. This Court in the case of Mohd. Mas v. Bodhani Bai, 1991 MPLJ 119, 1991 ACJ 371 while dealing with the scope of section 92-A and the plea of Insurance Company and the ultimate liability of the Insurer held as follows :-

"The further








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