Case Note & Summary
The case involves an appeal filed by The Oriental Insurance Co. Ltd. against an interim award passed by the Motor Accident Claims Tribunal under Section 140 of the Motor Vehicles Act, 1988. The Tribunal had directed the appellant insurer and respondent No.3 (owner of the vehicle) to pay Rs.50,000/- as 'no-fault liability' to the claimants (respondent No.1 and 2), who are the widow and son of the deceased Ashok Trivedi, along with interest at 7.5% per annum from the date of filing the petition until realization. The insurer appealed, arguing that the offending vehicle, a Tavera Jeep bearing registration No. MH-31-CV-5814, was not involved in the accident. They pointed out that the FIR initially did not disclose the vehicle's registration number, and the vehicle was seized after a long period from the date of the FIR. The respondent No.1's counsel countered that the issue of vehicle involvement is a matter of evidence to be led in the main petition, and the insurer has the burden to prove non-involvement. The High Court considered the prima facie legal position under Section 140 of the Act, which allows the Tribunal to pass an interim award when satisfied about the use of the motor vehicle in the accident. The Court noted that the Tribunal can pass an appropriate order depending upon the final award and evidence, and if it is ultimately found that the insured vehicle was not involved, the amount paid at the interim stage can be ordered to be restituted to the insurer. Therefore, the Court held that there would be no useful purpose in keeping the appeal pending and dismissed it, granting the insurer liberty to lead evidence at the final stage.
Headnote
A) Motor Vehicles Act - No-Fault Liability - Section 140 - Interim Award - The Tribunal passed an interim award of Rs.50,000/- under Section 140 of the Motor Vehicles Act, 1988, holding the insurer and owner jointly liable with interest at 7.5% per annum. The insurer appealed contending that the vehicle was not involved in the accident. The High Court held that the interim award is based on prima facie satisfaction of use of the motor vehicle in the accident, and the insurer can lead evidence at the final stage to prove non-involvement and seek restitution. The appeal was dismissed as no useful purpose would be served by keeping it pending. (Paras 1-3)
Issue of Consideration
Whether the interim award under Section 140 of the Motor Vehicles Act, 1988 can be challenged on the ground that the offending vehicle was not involved in the accident, when the insurer can raise this defence at the final stage of the main petition.
Final Decision
The appeal is dismissed. The insurer is at liberty to lead entire evidence in the main petition to prove that the offending vehicle was not involved in the accident, and the Tribunal may pass appropriate orders including restitution if the insurer succeeds.
Law Points
- No-fault liability under Section 140 Motor Vehicles Act
- 1988 is interim and does not require proof of negligence
- Tribunal can pass interim award based on prima facie satisfaction of vehicle involvement
- Insurer can lead evidence at final stage to prove non-involvement of vehicle and seek restitution
Case Details
2013 LawText (BOM) (12) 120
First Appeal No.1252 of 2013
Shri D.N.Kukday for appellant, Shri Asghar Hussain for R-1
The Oriental Insurance Co.Ltd.
Smt. Pushpa Wd/o Ashok Trivedi, Rajesh S/o Ashok Trivedi, Rajendra S/o Arjun Shende
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Nature of Litigation
Appeal against interim award under Section 140 of the Motor Vehicles Act, 1988 in a motor accident claim.
Remedy Sought
The appellant insurer sought to set aside the interim award of Rs.50,000/- as no-fault liability, contending that the offending vehicle was not involved in the accident.
Filing Reason
The insurer filed the appeal because the Tribunal passed an interim award holding the insurer and owner jointly liable to pay Rs.50,000/- with interest, despite the insurer's contention that the vehicle was not involved in the accident.
Previous Decisions
The Motor Accident Claims Tribunal passed an interim award under Section 140 of the Motor Vehicles Act, 1988, directing the appellant insurer and respondent No.3 to pay Rs.50,000/- as no-fault liability with interest at 7.5% per annum from the date of registration of the petition till realization.
Issues
Whether the interim award under Section 140 of the Motor Vehicles Act, 1988 can be challenged on the ground that the offending vehicle was not involved in the accident, when the insurer can raise this defence at the final stage of the main petition.
Submissions/Arguments
Appellant insurer argued that the vehicle registration number was not disclosed in the FIR and the vehicle was seized after a long period, so the vehicle was not involved in the accident.
Respondent No.1 argued that the issue of vehicle involvement is a matter of evidence to be led in the main petition and the insurer has the burden to prove non-involvement.
Ratio Decidendi
Under Section 140 of the Motor Vehicles Act, 1988, the Tribunal can pass an interim award based on prima facie satisfaction of the use of the motor vehicle in the accident. The insurer can lead evidence at the final stage to prove non-involvement of the vehicle, and if successful, the amount paid at the interim stage can be ordered to be restituted. Therefore, there is no useful purpose in keeping the appeal pending.
Judgment Excerpts
The appeal is in respect of interim award pursuant to order passed below Exhibit-5 whereby the appellant along with respondent No.3 were held liable to pay sum of Rs.50,000/- as 'no fault-liability' under Section 140 of the Motor Vehicles Act, 1988...
The Tribunal can pass an appropriate order depending upon final award and the evidence led before it as to whether the amount, if paid, at interim stage to the claimant, can be ordered to be restituted to the appellant insurer if at all it is found that the vehicle insured by the appellant was not involved in the accident.
Procedural History
The Motor Accident Claims Tribunal passed an interim award under Section 140 of the Motor Vehicles Act, 1988 on an application at Exhibit-5, directing the appellant insurer and respondent No.3 to pay Rs.50,000/- as no-fault liability with interest. The insurer filed First Appeal No.1252 of 2013 before the Bombay High Court, Nagpur Bench, challenging the interim award. The High Court dismissed the appeal on 20th December 2013.
Acts & Sections
- Motor Vehicles Act, 1988: 140
