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National Insurance Company Limited vs Myaben Rameshbhai Masani & 2S

High Court Of Gujarat|29 February, 2012
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JUDGMENT / ORDER

1. This appeal is directed against the judgement and award dated 17.05.2011 passed by learned Motor Accident Claims Tribunal (Aux.), Morbi in Motor Accident Claims Petition No. 99 of 2007, wherein the Tribunal has awarded a sum of Rs. 2,61,500/- along with interest at the rate of 7.5% per annum from the date of application till realization.
2. The claimants filed the claim petition under the provisions of Section 163-A of the M.V. Act to get compensation on structured formula basis and claimed Rs. 3,64,500/- on account of accidental death of one Rameshbhai Masani, who expired due to injuries sustained in the vehicular accident occurred on 27.06.2004 wherein the two offending vehicles i.e. Motorcycle No. GJ-3AD-1422 and Bajaj M80 No. GJ-3BB-5462 were involved.
3. Mr. Shelat, learned Advocate for the appellant submitted that the deceased was not the registered owner of the insured motorcycle and being driver of motorcycle his risk was not covered under the policy in question which was an ACT Policy. He submitted that the risk of owner cum driver was covered under the policy and not driver of motorcycle who was not owner of the insured vehiclce and therefore the Tribunal clearly fell in error while passing the impugned award.
4. It is by now well settled law that application under section 163-A of the Motor Vehicles Act cannot be treated at par with an application under Section 140 of the Act. Under Section 140 of the Act only fixed compensation is payable whereas it is not the case in an application under Section 163- A of the Act. As per the law laid down by the Apex Court, award under Section 163-A is an alternative to an award under Section 166 of the Act and therefore application under Section 163-A cannot be disposed of in a summary manner without considering the issue of liability of the Insurance Company and also other issues.
5. In the case of National Insurance Company Ltd. Vs. Sinitha and Others, reported in 2011(13) SCALE 85, it is held that it is open to the owner or insurance company, as the case may be, to defeat a claim under Section 163-A of the Act by pleading and establishing a 'fault' ground.
6. I have gone through the judgement of the Tribunal. The Tribunal has proceeded on the basis that under Section 163-A of the Act involvement of particular identified vehicle is only required to be proved. It appears that the Tribunal has not considered the facts and law mentioned hereinabove. Resultantly, the Tribunal is required to reconsider the matter in view of the aforesaid facts and ratio laid down by the Apex Court.
7. In the premises aforesaid, the following order is passed:
(i) The judgement and award impugned in the present appeal is hereby quashed and set aside.
(ii) The matter is remanded to the Tribunal to consider the same afresh in light of the discussion made hereinabove.
(iii) The Tribunal shall hear and decide the matter as early as possible and in any case within a period of two years from the date of receipt of writ of this order.
(iv) The amount invested in Fixed Deposit, as directed by this Court, shall be continued in Fixed Deposit and the claimants shall be entitled for the periodical interest on the said Deposit only up to the date of this judgment and order.
(v) It is, however, made clear that interest accruing on the said Fixed Deposit shall be accumulated and will be adjusted at the time of the final award.
(vi) The amount awarded & already withdrawn by the claimant, pursuant to the impugned award, will be adjusted at the time of the final award.
(vii) The amount shall be disbursed as per the final decision of the Tribunal.
(viii) Since the matter is pending since long, the Tribunal is directed to dispose of the case as expeditiously as possible and in any case not later than two years from the date of receipt of the writ of this Court.
(ix) It is observed that this Court has not entered into the merits of the matter and the Tribunal shall consider the same afresh, without being influenced by the fact that this Court has quashed its earlier judgment and award.
8. The Appeal is allowed to the aforesaid extent. R & P, if lying with this Court to be sent back forthwith.
(K.S.JHAVERI, J.) Divya//
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Title

National Insurance Company Limited vs Myaben Rameshbhai Masani & 2S

Court

High Court Of Gujarat

JudgmentDate
29 February, 2012
Judges
  • Ks Jhaveri
Advocates
  • Mr Maulik J Shelat