Case Note & Summary
The case involves an appeal by the claimants (legal representatives of the deceased) against the order of the Motor Accident Claims Tribunal, Pune, which exonerated the Insurance Company (ICICI Lombard General Insurance Co. Ltd.) from paying compensation on the ground that the driver of the offending vehicle did not hold a valid driving license at the time of the accident. The Tribunal held that there was a breach of policy conditions and directed the owner of the vehicle to pay the compensation. The claimants appealed, contending that the Tribunal's finding of breach was improper. The Insurance Company argued that the claimants are not aggrieved persons under Section 173 of the Motor Vehicles Act, 1988 and cannot challenge the exoneration. The Court, after hearing both sides, held that the claimants are indeed aggrieved persons under Section 173 as they are entitled to compensation and the exoneration of the insurer affects their right to recover the amount from the insurer. The Court set aside the Tribunal's order exonerating the Insurance Company and remanded the matter back to the Tribunal for fresh consideration on the issue of breach of policy conditions, directing the Tribunal to give an opportunity to the claimants to lead evidence on the driving license issue. The appeal was allowed.
Headnote
A) Motor Vehicles Act - Appeal - Aggrieved Person - Section 173 of Motor Vehicles Act, 1988 - Claimants are aggrieved persons under Section 173 and can challenge the Tribunal's order exonerating the Insurance Company from liability - The Court held that the claimants have a right to appeal against the exoneration of the insurer as it affects their right to recover compensation from the insurer (Paras 7-8).
Issue of Consideration
Whether the claimants can be considered as aggrieved party under Section 173 of the Motor Vehicles Act, 1988 to challenge the exoneration of the Insurance Company from paying compensation.
Final Decision
The appeal is allowed. The impugned order of the Motor Accident Claims Tribunal, Pune, exonerating the Insurance Company is set aside. The matter is remanded back to the Tribunal for fresh consideration on the issue of breach of policy conditions. The Tribunal shall give an opportunity to the claimants to lead evidence on the driving license issue. The Insurance Company is directed to pay the compensation amount to the claimants and then recover the same from the owner of the offending vehicle in accordance with law.
Law Points
- Claimants are aggrieved persons under Section 173 of Motor Vehicles Act
- 1988
- Insurance Company cannot be exonerated without proper evidence of breach of policy conditions
- Owner's failure to contest does not bar claimants from challenging exoneration
Case Details
2023 LawText (BOM) (04) 74
First Appeal No.410 of 2016
Mr. Niketan Nakhawa for Appellants, Mr. Rajesh Kanojia a/w Ms. Nikita Singh i/b Res Juris for Respondent No.2
Shubhash Waman Baviskar, Swapnil Subhash Baviskar, Sanket Subhash Baviskar
Adinath Hambirrao Budhwant, ICICI Lombard General Insurance Co. Ltd.
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Nature of Litigation
Appeal against order of Motor Accident Claims Tribunal exonerating Insurance Company from paying compensation.
Remedy Sought
Claimants sought to set aside the Tribunal's order exonerating the Insurance Company and to hold the insurer liable to pay compensation.
Filing Reason
The Tribunal held that the driver of the offending vehicle did not hold a valid driving license, constituting breach of policy conditions, and exonerated the Insurance Company.
Previous Decisions
The Motor Accident Claims Tribunal, Pune, passed an order exonerating the Insurance Company from liability and directing the owner to pay compensation.
Issues
Whether the claimants are aggrieved persons under Section 173 of the Motor Vehicles Act, 1988 and can challenge the exoneration of the Insurance Company.
Whether the Tribunal's finding of breach of policy conditions was proper.
Submissions/Arguments
Appellants: The Tribunal's observation that there was breach of policy conditions is improper; the Insurance Company should be held liable.
Respondent-Insurance Company: Claimants are not aggrieved persons under Section 173; only the owner can challenge the order; the Tribunal rightly exonerated the insurer.
Ratio Decidendi
Claimants are aggrieved persons under Section 173 of the Motor Vehicles Act, 1988 and have the right to appeal against an order exonerating the Insurance Company. The Tribunal must give the claimants an opportunity to lead evidence on the issue of breach of policy conditions before exonerating the insurer.
Judgment Excerpts
The issue involved in this Appeal is exoneration of the Insurance Company from paying compensation.
Claimants cannot be considered as aggrieved party against the Insurance Company as the Claimants are only entitled for compensation in respect of accident caused and they are not suppose to see from whose pocket they are getting compensation.
As per Section 173 of Motor Vehicles Act, the Claimants cannot be considered as aggrieved party as against the Insurance Company.
Procedural History
The Motor Accident Claims Tribunal, Pune, passed an order exonerating the Insurance Company from liability. The claimants filed an appeal before the High Court of Judicature at Bombay challenging the exoneration. The High Court heard the appeal and passed the present judgment.
Acts & Sections
- Motor Vehicles Act, 1988: Section 173
