Case Note & Summary
The case involves two first appeals filed by the National Insurance Company Limited against the judgment and award dated 28.2.2011 passed by the Motor Accident Claims Tribunal, Chandrapur, in Motor Accident Claim Petition Nos.64/2006 and 65/2006. The Tribunal had allowed applications under Section 140 of the Motor Vehicles Act, 1988, awarding Rs.50,000 with simple interest at 7% per annum from the date of application till realization to the legal heirs of two deceased labourers, Bayabai w/o Shrawan Butle (aged 40) and Udhao s/o Narayan Butle (aged 46), who died in the same truck accident. The Insurance Company challenged these interim awards, arguing that the Tribunal erred in granting compensation under Section 140. The High Court, after hearing both sides, noted that the awards were interim in nature under the no-fault liability provision and that the Insurance Company had not pointed out any error in the Tribunal's order. Consequently, the court dismissed both appeals, finding no merit in them.
Headnote
A) Motor Vehicles Act - Section 140 - No-fault liability - Interim compensation - The Tribunal awarded Rs.50,000 with 7% interest under Section 140 of the Motor Vehicles Act, 1988, to the legal heirs of deceased labourers who died in a truck accident. The Insurance Company appealed, but the High Court found no error in the Tribunal's order and dismissed the appeals. (Paras 2-5)
Issue of Consideration
Whether the Motor Accident Claims Tribunal erred in granting interim compensation under Section 140 of the Motor Vehicles Act, 1988, to the legal heirs of deceased labourers who died in a truck accident, and whether the appeals against such interim awards are maintainable.
Final Decision
Both First Appeal No.861/2012 and First Appeal No.859/2012 are dismissed. No order as to costs.
Law Points
- Section 140 Motor Vehicles Act
- 1988
- No-fault liability
- Interim award
- Appeal against interim award
- No error in Tribunal's order
Case Details
2013 LawText (BOM) (11) 68
First Appeal No.861/2012 and First Appeal No.859/2012
Shri Ajay Somani for appellant, Shri J.M. Gandhi for respondent no.4 (in FA 861/2012) and respondent no.3 (in FA 859/2012)
National Insurance Company Limited
Udhao s/o Narayan Butle and others (in FA 861/2012); Shrawan s/o Narayan Butle and others (in FA 859/2012)
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Nature of Litigation
Appeals against interim awards under Section 140 of the Motor Vehicles Act, 1988, in motor accident claim petitions.
Remedy Sought
The appellant (Insurance Company) sought to set aside the interim awards of Rs.50,000 each granted by the Motor Accident Claims Tribunal.
Filing Reason
The Insurance Company challenged the Tribunal's order granting interim compensation under Section 140 of the Motor Vehicles Act, 1988, to the legal heirs of deceased labourers.
Previous Decisions
The Motor Accident Claims Tribunal, Chandrapur, allowed applications under Section 140 of the Motor Vehicles Act, 1988, and awarded Rs.50,000 with 7% interest per annum in MACP No.64/2006 and MACP No.65/2006, both dated 28.2.2011.
Issues
Whether the Tribunal erred in granting interim compensation under Section 140 of the Motor Vehicles Act, 1988?
Whether the appeals against the interim awards are maintainable?
Submissions/Arguments
The appellant Insurance Company argued that the Tribunal erred in granting the interim awards.
The respondents (legal heirs) supported the Tribunal's order.
Ratio Decidendi
The court found no error in the Tribunal's order granting interim compensation under Section 140 of the Motor Vehicles Act, 1988, as the awards were based on no-fault liability and the appeals lacked merit.
Judgment Excerpts
Heard.
It is not in dispute that both the awards under Section 140 of the Motor Vehicles Act arose out of the same incident of accident.
In the result, both the appeals are dismissed. No order as to costs.
Procedural History
The Motor Accident Claims Tribunal, Chandrapur, passed interim awards under Section 140 of the Motor Vehicles Act, 1988, on 28.2.2011 in MACP No.64/2006 and MACP No.65/2006. The Insurance Company filed First Appeal No.859/2012 and First Appeal No.861/2012 against these awards. The High Court heard the appeals and dismissed them on 20.11.2013.
Acts & Sections
- Motor Vehicles Act, 1988: Section 140
