Judgments
Judgments
  1. Home
  2. /
  3. High Court Of Gujarat
  4. /
  5. 2012
  6. /
  7. January

United India Insuranc Co Ltd vs Babubhai Shambhubhai Vala & 2S

High Court Of Gujarat|09 February, 2012
|

JUDGMENT / ORDER

1. This appeal is directed against the judgement and award dated 24.08.2001 passed by learned Motor Accident Claims Tribunal (Main), Bhavnagar below Ex. 5 in Motor Accident Claims Petition No. 149 of 2001, wherein the Tribunal has awarded a sum of Rs. 4,84,500/- along with interest at the rate of 9% per annum from the date of application till realization.
2. The claimants being legal heirs of the deceased filed application under Section 163-A of the Motor Vehicles Act seeking interim compensation to the tune of Rs. 485000 wherein the impugned award came to be passed which is challenged in the present appeal.
3. Mr. Thomas, learned Advocate for Ms. Jani for the appellant submitted that the Tribunal clearly fell in error while passing the impugned award in application under Section 163-A in view of the fact that the Tribunal has not considered that the income of the deceased was around Rs. 5340 per month. He has submitted that in the case of Deepal Girishbhai Soni and Others vs. United Insurance Co. Ltd. reported in 2004(5) SCC 385(= AIR 2004 SC 2107), the Apex Court has clearly held that the proceeding under Section 163-A being a social security provision, providing for a distinct scheme, only those whose annual income is up to Rs. 40000/- can take the benefit thereof. All other claims are required to be determined in terms of Chapter XII of the Act.
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 such as income, negligence etc.
5. I have gone through the judgement of the Tribunal. It appears that the Tribunal has not considered the facts and law mentioned hereinabove. The income of the deceased was more than Rs. 40,000/- per annum and therefore considering the decision of the Apex Court in the case of Deepal Girishbhai Soni (supra), the Tribunal is required to reconsider the matter more particularly in terms of Chapter XII of the Act.
6. In the premises aforesaid, the judgement and award impugned in the present appeal is hereby quashed and set aside. The matter is remanded to the Tribunal to consider the same afresh in light of the discussion made hereinabove. 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. In the meanwhile the awarded amount shall be invested in a fixed deposit by the Tribunal with any nationalized bank in the name of the Nazir of the Tribunal and the receipt thereof shall be retained with the Tribunal. The interest that may be accrued on the said deposit shall not be disbursed. The amount shall be disbursed as per the final decision of the Tribunal. The benefits conferred to the claimants shall be adjusted at the time of final award.
7. It is clarified that Court has not expressed any opinion on the merits of the case. The Appeal is allowed to the aforesaid extent.
(K.S.JHAVERI, J.) Divya//
Disclaimer: Above Judgment displayed here are taken straight from the court; Vakilsearch has no ownership interest in, reservation over, or other connection to them.
Title

United India Insuranc Co Ltd vs Babubhai Shambhubhai Vala & 2S

Court

High Court Of Gujarat

JudgmentDate
09 February, 2012
Judges
  • Ks Jhaveri
Advocates
  • Mr Vibhuti Nanavati