Case Note & Summary
The appellant, Swayambhu Construction Pvt. Ltd., filed a first appeal against the judgment and award of the Motor Accident Claims Tribunal, Bhandara, in Claim Petition No.43/2007. The Tribunal had exonerated the insurance company (respondent no.4) and saddled the entire liability on the appellant. The appellant contended that he was not given an opportunity of being heard because his mother had died, and he could not attend the proceedings. He also argued that the vehicle was insured with respondent no.4, but the Tribunal held there was a breach of the insurance policy terms. The High Court, after hearing both sides, admitted the appeal and heard it finally with consent. The court considered the cause for non-appearance and found that the appellant was deprived of an opportunity to lead evidence, particularly to rebut the defence raised by respondent no.3 (the driver). In the interest of justice, the court set aside the award to the extent it exonerated respondent no.4 and saddled liability on the appellant. The court clarified that the only issue to be decided by the Tribunal on remand is whether there was a breach of the insurance policy terms; other issues like income of the deceased, loss of dependency, multiplier, and total compensation were affirmed. The court directed that the amount deposited by the appellant with the Registry be transmitted to the Tribunal for disbursement to the claimants. If the appellant succeeds, he would be entitled to recover the amount from respondent no.4. The parties were directed to appear before the Tribunal on 26.12.2012, and the Tribunal was to decide the petition within six months.
Headnote
A) Motor Accident Claims - Denial of Opportunity of Hearing - Remand for Limited Issue - The appellant was deprived of an opportunity to lead evidence due to the death of his mother, resulting in an ex-parte award. The High Court set aside the award to the extent of the issue of breach of insurance policy terms and remanded the matter to the Tribunal for fresh consideration on that limited issue, while affirming the quantum of compensation. (Paras 3-6) B) Insurance Law - Breach of Policy Terms - Liability of Insurer - The Tribunal had exonerated the insurance company (respondent no.4) on the ground of breach of policy terms, but the appellant was not heard. The High Court held that the appellant must be given an opportunity to rebut the defence of breach, and the Tribunal must decide that issue afresh. (Paras 4-5)
Issue of Consideration
Whether the appellant was denied an opportunity of being heard before the Motor Accident Claims Tribunal, and whether the award exonerating the insurance company and saddling entire liability on the appellant should be set aside.
Final Decision
Appeal succeeds partly. The judgment and award to the extent of exonerating respondent no.4 and saddling entire liability upon the appellant is set aside. Rest of the award (fixing compensation amount) is affirmed. Matter remitted to Motor Accident Claims Tribunal, Bhandara, for decision only on the issue of breach of terms of insurance policy, after giving opportunity to parties. Appellant may file written statement. Amount deposited by appellant to be transmitted to Tribunal for disbursement to claimants. If appellant succeeds, he may recover from respondent no.4. Parties to appear before Tribunal on 26.12.2012. Tribunal to decide within six months.
Law Points
- Natural justice
- opportunity of hearing
- breach of insurance policy terms
- remand for limited issue
