Case Note & Summary
The appeal was filed by The Oriental Insurance Co. Ltd. challenging an interim award dated 17.6.2013 passed by the Motor Accident Claims Tribunal-2, Nagpur under Section 140 of the Motor Vehicles Act, 1988 in Claim Petition No.928 of 2012. The claimants, Sewakdas @ Shivaji Sahare and Yamunabai, are the parents of the deceased Akash, who died as a pillion rider on a motor cycle when a tipper (MH-40-N-9463) dashed against the motor cycle. The Tribunal, considering the prima facie case including police papers, awarded Rs.50,000/- with interest at 7.5% p.a. from 21.9.2012 (date of petition) till realization. The Insurance Company appealed, arguing that based on evidence to be led, it may be exonerated from liability as the owner/driver of the offending vehicle is liable. The High Court observed that the contention can be examined at final hearing, but at the interim stage, the amount under Section 140 is payable on prima facie case. The Court dismissed the appeal, directed the Insurance Company to pay the awarded amount within four weeks, and granted liberty to recover the amount from the owner/driver if ultimately exonerated at final hearing.
Headnote
A) Motor Accident Claims - Interim Compensation - Section 140 Motor Vehicles Act, 1988 - Prima Facie Case - The Tribunal awarded interim compensation of Rs.50,000/- with interest at 7.5% p.a. from the date of petition to the dependents of the deceased pillion rider who died in a motor accident involving a tipper. The Insurance Company appealed contending that it may be exonerated after trial. The High Court held that at the interim stage, the amount under Section 140 is payable on prima facie case and the Insurance Company's contentions can be examined at final hearing. The appeal was dismissed with direction to pay the awarded amount and liberty to recover from the owner/driver if ultimately exonerated. (Paras 1-5)
Issue of Consideration
Whether the Insurance Company can be exonerated from liability to pay interim compensation under Section 140 of the Motor Vehicles Act, 1988 at the stage of interim award.
Final Decision
The appeal is dismissed. The appellant Insurance Company is directed to pay the awarded amount of Rs.50,000/- with interest at 7.5% p.a. from 21.9.2012 till realization to the claimants within four weeks. The Insurance Company is at liberty to recover the amount from the owner/driver of the offending vehicle if ultimately exonerated at the final hearing.
Law Points
- Interim award under Section 140 Motor Vehicles Act is payable on prima facie case
- Insurance company cannot avoid liability at interim stage
- Right of recovery reserved for final adjudication
