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2023 Supreme(Megh) 18

IN THE HIGH COURT OF MEGHALAYA AT SHILLONG
W.Diengdoh, J.
New India Assurance Co. Ltd - Appellant
Versus
Dresilla Mawroh - Respondent
MAC App. No. 1 of 2022, MAC App. No. 2 of 2022, MAC App. No. 3 of 2022
Decided On : 31-05-2023

Advocates appeared:
S.Jindal, Advocate, Rakesh Singh, Advocate, A.Khan, Advocate

The insurer is liable for compensation regardless of alleged fraud concerning the insurance policy, which must be proven by the insurer.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 140, 166, 168, 147(3) and 149(1) - Appeal against compensation order - The appellant challenged the MACT's award on the grounds of non-adherence to natural justice and fraud. The MACT awarded Rs.9,28,000 to one claimant for death, and smaller amounts for injuries sustained in a motor vehicle accident. The appellant contended the insurance policy was invalid due to the owner's previous death. (Paras 6, 10, 36)

(B) Natural Justice - The appellant's counsel argued the appellant was not given the opportunity for oral submissions before the MACT's judgment, which constituted a breach of natural justice. (Para 7)

(C) Validity of Insurance Policy - The court determined the policy was valid at the time of the accident, emphasizing the need for the insurer to prove any claims of fraud. The excuse of fraud could not absolve liability for compensation. (Paras 29, 36)

Facts of the case:
The case involved a motor vehicle accident occurring on 20/4/2006 resulting in death and injuries. The MACT awarded compensation based on the findings regarding fault. (Paras 3-5)

Findings of Court:
The court found that the liability for compensation must be borne by the Insurance Company despite claims of fraud regarding the insurance policy. The award granted by the MACT was upheld. (Paras 34-38)

Issues: The main issues were the validity of the insurance policy at the time of the accident and whether natural justice was afforded to the appellant in the proceedings. (Paras 11-12, 25)

Ratio Decidendi: The court held that the insurance policy was valid and thus the insurer was liable for compensation, irrespective of the alleged fraud which was not sufficiently proved. The need for evidence to support claims of fraud was emphasized. (Paras 28-30)

Result: The appeal was dismissed and the compensation awarded was upheld, with an order for payment directed to the claimant. (Para 39)

Table of Content
1. factual background of the accident and claims. (Para 3 , 4 , 5 , 6)
2. arguments concerning adherence to natural justice. (Para 7 , 8 , 9 , 10 , 11)
3. discussions on the case law and principles of fraud. (Para 12 , 13 , 14)
4. defense arguments relating to compensation liability. (Para 15 , 16 , 21)
5. legal principles on compensation and fraud defenses. (Para 18 , 36)
6. final analysis and directive for compensation payment. (Para 34 , 37 , 38 , 39)

JUDGMENT

1. Not being satisfied by the common judgment and order dtd. 30/7/2021 passed by the learned Member, Motor Accident Claim Tribunal, East Khasi Hills District, Shillong in MAC Case Nos. 95, 96 and 97 of 2006 respectively, the appellant/New India Assurance Co. Ltd. has now approached this Court with this appeal, inter alia, with a prayer that the said impugned judgment be set aside or be modified.

2. Since a common judgment and award was passed by the learned MACT, though three separate appeals were filed by the appellant, it would be prudent and convenient for this Court to consider the pleadings and argument of the parties and to pass a common judgment accordingly.

3. Facts admitted by the parties herein is that on 20/4/2006 a motor vehicle accident occurred at about 7.00 pm or so, at a place called Ur -Masi -U -Joh, Smit in the East Khasi Hills District involving a Bus bearing registration No. ML-05-2775.

4. The cause of the said accident was due to rash and negligent driving of the driver of the said bus who, in spite of warnings of the passengers drove the same at a very high speed and on reaching the place of occurrence, the bus overturned and in the process a number of passengers sustained injuries and death also occurred.

5. The husband of Claimant No. 1 in MAC No. 97 of 2006 died as a result of the said accident, while the Claimant in MAC No. 95 of 2006 as well as the Claimant No. 1 in MAC No. 96 of 2006 sustained injuries on their person. These three along with other claimants have accordingly approached the learned MACT seeking award of just compensation for the loss incurred etc.

6. The learned MACT while adjudicating on the claims of the parties herein, having recorded the evidence and on appreciation of the same along with all relevant materials on record, passed the impugned judgment and order awarding compensation of Rs.9, 28, 000.00 to the Claimants in MAC No. 97, Rs.62, 123.00 to the claimants in MAC No. 95 and Rs.42, 806.00 to the claimants in MAC No. 96. The said award also carried an interest of 9% p.a. from the date of filing of the application till 31/1/2020 when the cases were first posted for judgment.

7. Mr. S. Jindal, learned counsel for the appellant/New India Assurance Co. Ltd. has assailed the said impugned judgment and order by raising a preliminary issue of non-adherence to the principle of natural justice by the learned Tribunal inasmuch as in the impugned judgment, at para 17 it is noticed that the learned Tribunal has recorded that the counsels have relied on the written argument filed by them and accordingly, the matter was posted for judgment. However, as far as the appellant is concerned, no written argument was ever filed since it was prayed before the Tribunal for oral submission to be made which fact was ignored in the impugned judgment. It is the submission of the learned counsel that the appellant was not heard before the impugned judgment was passed.

8. It is also submitted that at para 56 of the impugned judgment the learned Tribunal had noticed the earlier order dtd. 25/4/2008 passed in the case wherein on an application for grant of interim relief, the Tribunal has allowed the prayer and has accordingly granted interim relief of Rs.50, 000.00 to the respondent No. 1/claimant in MAC No. 97. However, on an application for review of the same, has accordingly, vide order dtd. 2/9/2008 reviewed the order dtd. 25/4/2008 and has held that the appellant/Insurance Company is not liable to pay interim relief. If the appellan

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