Amicable settlements in compensation claims are encouraged, with courts facilitating final resolutions between parties.

Headnote:(A) Motor Vehicles Act, 1988 - Claim for compensation - Appeal against MACT award of Rs. 10,68,000/- - Settlement reached between parties for additional Rs. 7,50,000/- as full and final settlement - Insurance Company directed to deposit within 45 days. (Paras 1-3)

(B) Legal heirs - Substitution of claimants due to death of original claimant - Proper representation by legal heirs established. (Paras 1-2)

Facts of the case:
The appeal was filed by an insurance company against a MACT award. The original claimant passed away, leading to substitution by legal heirs who authorized the mother to represent them. An amount of Rs. 5,59,000/- had already been paid. (Paras 1-2)

Findings of Court:
The appeal is closed with a direction for the insurance company to deposit an additional Rs. 7,50,000/- as full and final settlement. (Paras 3)

Issues: The main issue was whether the appeal could be settled amicably and the appropriate distribution of the settlement amount. (Paras 1-3)

Ratio Decidendi: The court emphasized the importance of amicable settlement between parties and outlined the terms for the release of the settlement amount. (Paras 3)

Result: Appeal stands closed.

ORDER

14.09.2024 This is an appeal filed by the appellant-Tata AIG General Insurance Co. Ltd. (for short Insurance Company) against the judgment and award dated 09.03.2018 passed by the learned Member, Motor Accident Claims Tribunal, Morigaon (for short MACT, Morigaon) in MAC (Death) Case No. 54/2015 whereby an amount of Rs. 10,68,000/- was directed to be paid by the Insurance Company to the claimant.

Shri Subhas Debnath, Legal Manager of the Insurance Company and the claimant-Musst. Najma Begum @ Norjahan Begum along with her learned counsel, Shri AB Siddique are present today i.e., 14.09.2024 in the National Lok Adalat.

At the outset, it is informed that so far as the claimant no. 1-Md. Ismat Ali is concerned, he had passed away and was substituted by his legal heirs vide an order dated 07.06.2024. The substituted daughter-Aliza Khatun and son-Sadiqul Islam have authorised the claimant no. 2-mother to represent them. It is also informed that an amount of Rs. 5,59,000/- has already been paid to the claimants.

The parties present before this Court jointly submit that the matter has been settled between the parties and an additional amount of Rs.7,50,000/- as full and final settlement has been agreed upon.

In view of the above, the appeal stands closed with a direction that the Insurance Company shall deposit the additional amount of Rs.7,50,000/- being the full and final settlement before the Registry of this Court within a period of 45 days from today.

The claimants would be at liberty to withdraw the aforesaid amount on being properly identified by her learned counsel. The manner of release of the aforesaid amount would be in the following terms:

i) Out of the aforesaid amount of Rs.7,50,000/-, Rs.3,50,000/- is directed to be released in favour of the claimant no. 1- Musst. Najma Begum @Norjahan Begum, ii) Rs. 2,00,000/- each is directed to be released in favour of the daughter-Aliza Khatun and son-Sadiqul Islam.

The statutory deposit of Rs.25,000/- made by the Insurance Company at the time of filing of the appeal would be refunded to the Insurance Company within a period of 30 days.

Send back the LCR.

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2024 Supreme(Online)(GAU) 7706

HIGH COURT OF GAUHATIMR. JUSTICE SANJAY KUMAR MEDHI, JTATA AIG GENERAL INSURANCE CO. LTD – AppellantVersusON THE DEATH OF MD ISMAT ALI HIS LEGAL HEIRS AND 3 ORS – RespondentMACApp. / 751 / 2018

Amicable settlements in compensation claims are encouraged, with courts facilitating final resolutions between parties.

HIGH COURT OF GAUHATI
MR. JUSTICE SANJAY KUMAR MEDHI, J
TATA AIG GENERAL INSURANCE CO. LTD – Appellant
Versus
ON THE DEATH OF MD ISMAT ALI HIS LEGAL HEIRS AND 3 ORS – Respondent
MACApp. / 751 / 2018