Case Note & Summary
The present appeal was filed by Bajaj Allianz General Insurance Co. Ltd. (the original respondent No.2) challenging the order dated 16.10.2010 passed by the Motor Accident Claims Tribunal below Exhibit 5 in M.A.C.P. No.389/2009. By that order, the Tribunal allowed the application under Section 140 of the Motor Vehicles Act, 1988 (No Fault Liability) and directed the insurance company to pay interim compensation to the claimants. The claimants, who are the legal heirs of deceased Mohd. Ayyub Mohd. Hanif, contended that the deceased was a butcher aged 35 years earning Rs.10,000/- per month. On 14.12.2005 at about 7.00 p.m., while he was returning from village Umra to Usman Nagar on a bicycle, he was dashed from behind by a motorcycle bearing registration No. MH-26/P-9068 near Mahadeo Khandi in Shiradhon village, Tq. Kandhar, Dist. Nanded. The deceased sustained head injury and expired on 16.12.2005. The claimants alleged that the accident occurred due to the negligence of the driver/owner of the motorcycle (respondent No.1) and that the vehicle was insured with the appellant insurance company. The claimants filed a petition under Section 166 of the Motor Vehicles Act and also sought interim compensation under Section 140. The owner of the motorcycle filed a written statement denying all averments including the fact of accident and negligence. The insurance company also filed a separate written statement denying the involvement of the insured vehicle in the accident. The Tribunal, without recording any finding on the prima facie involvement of the vehicle, allowed the application under Section 140 and directed the insurance company to pay interim compensation. Aggrieved, the insurance company filed the present appeal. The High Court observed that under Section 140 of the Motor Vehicles Act, the Tribunal must be satisfied that the accident has resulted in death or permanent disablement due to the use of a motor vehicle. In the present case, the involvement of the insured vehicle was seriously disputed by both the owner and the insurance company. The Tribunal did not record any satisfaction regarding the involvement of the vehicle. The High Court held that the order granting interim compensation was passed without application of mind and without considering the objections raised by the insurance company. Accordingly, the High Court allowed the appeal, set aside the impugned order, and remanded the matter to the Tribunal for fresh consideration of the application under Section 140 after giving an opportunity to both sides to adduce evidence on the issue of involvement of the vehicle. The High Court directed the Tribunal to decide the application afresh within three months from the date of receipt of the order.
Headnote
A) Motor Vehicles Act - No Fault Liability - Section 140 - Interim Compensation - The Tribunal allowed an application under Section 140 of the Motor Vehicles Act, 1988 directing the insurance company to pay interim compensation to the claimants. The insurance company appealed contending that the involvement of the insured vehicle was disputed and no prima facie evidence was adduced. The High Court held that before awarding compensation under Section 140, the Tribunal must be satisfied about the involvement of the vehicle in the accident. Since the Tribunal did not record such satisfaction, the order was set aside and the matter remanded for fresh consideration. (Paras 1-10) B) Motor Vehicles Act - Prima Facie Case - Section 140 - Burden on Claimants - The claimants must establish at least a prima facie case that the accident occurred due to the use of the insured vehicle. Mere filing of the claim petition is insufficient. The insurance company is entitled to contest the involvement of the vehicle at the interim stage. (Paras 5-9)
Issue of Consideration
Whether the Motor Accident Claims Tribunal was justified in allowing the application under Section 140 of the Motor Vehicles Act, 1988 for interim compensation without first determining the prima facie involvement of the insured vehicle in the accident
Final Decision
The appeal is allowed. The impugned order dated 16.10.2010 passed by the Motor Accident Claims Tribunal below Exhibit 5 in M.A.C.P. No.389/2009 is set aside. The matter is remanded to the Tribunal for fresh consideration of the application under Section 140 of the Motor Vehicles Act, 1988 after giving an opportunity to both sides to adduce evidence on the issue of involvement of the vehicle. The Tribunal is directed to decide the application afresh within three months from the date of receipt of the order.
Law Points
- No fault liability under Section 140 Motor Vehicles Act
- 1988 requires prima facie evidence of accident involvement
- Insurance company can contest liability at interim stage if involvement of vehicle is disputed
- Tribunal must record satisfaction about accident involvement before awarding interim compensation
