REPORTABLE

IN THE SURPEME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO(s). 682 OF 2011

(@ SLP (C) No.12743/2010)

ORIENTAL INSURANCE CO.LTD. Appellant(s)

VERSUS

DHANBAI KANJI GADHVI & ORS. Respondent(s)

O R D E R

Leave granted.

This appeal is directed against the judgment

dated 15.1.2010 rendered by the learned Single Judge of

the High Court of Gujarat at Ahmedabad in Special Civil

Application No.9400 of 2006 by which the order dated

23.12.2005 passed by the Motor Accident Claims Tribunal

(MACT) Bhuj, Kachchh in M.A.C.P. No.759/97 permitting

the respondents, who had already obtained compensation

under Section 163A of the Motor Vehicles Act 1988 (`the

Act' for short), to proceed with the application filed

under section 166 of the Motor Vehicles Act 1988, is

affirmed.

The respondents are the original claimants. On

17.6.97, the deceased viz. Kanji Keshavbhai Gadhvi was

riding his two wheeler i.e. Luna. When he reached near

IFFCO, the driver of taxi bearing No.GJ-12-C-9484 who

was coming from the opposite direction dashed the

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taxi with the Luna as result of which Kanjibhai lost his

life. Therefore, the respondents who are legal

heirs of the deceased respondent filed MACP No.759 of

1997 under Section 166 of the Motor Vehicles Act against

the driver and owner of the taxi as well as against the

petitioner who is insurer of the taxi and claimed

compensation of Rs.7,50,000/-. The respondents had

thereafter filed an application at Exhibit 6 under

section 163A of the Act and claimed compensation of Rs.

3,93,500/- on the principle of no fault liability.

The Tribunal had partly allowed the application

filed by the respondents under Section 163A of the Act

and ordered the petitioner to pay a sum of Rs.2,65,500/-

with 12% interest vide judgment dated 18.10.2000. The

case of the petitioner is that the petitioner had

deposited the said amount and the respondents have

already withdrawn and invested the amount of

compensation as directed by the Tribunal.

The present petitioner filed an application

with a prayer that the application filed under Section

166 which was pending be rejected in view of the

decision of this Court in Oriental Insurance Co. Ltd.

Vs. Hansrajbhai V. Kodala & Ors. (2001) 5 SCC 175.

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The Tribunal by order dated 25.6.2002 granted

stay of further proceedings of the petition filed under

Section 166 of the Act till further orders. In the

meanwhile, the petitioner challenged the award passed by

the Tribunal under Section 163A of the Act by filing

First Appeal No.3019 of 2007. The appeal was dismissed

on the ground of delay.

The respondents thereafter filed an application

with a prayer that they be permitted to proceed with the

petition filed under Section 166 of the Motor Vehicles

Act and they were ready to give undertaking to give

credit of the amount awarded to them as compensation in

the claim petition filed under Section 163A of the Act.

The Tribunal by an order dated 23.12.2005 permitted the

respondents to proceed with the petition filed under

Section 166 of the Act. The Tribunal also directed that

amount already disbursed in favour of the respondents

and invested by them, pursuant to the award made under

Section 163A shall be adjusted to the final award to be

passed under Section 166 of the Motor Vehicles Act.

Feeling aggrieved, the petitioner preferred

Special Civil Application No.9400 of 2006 before the

High Court.

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The learned Single judge of the High Court has

rejected the same by judgment dated 15.1.2010 giving

rise to the instant appeal.

This Court has heard the learned counsel for

the parties.

This Court has perused the impugne