Bombay High Court Allows Appeal by Insurance Company in Motor Accident Claim Case — Remands Matter for Fresh Consideration on Liability of Insurer of Vehicle. The Court held that the Tribunal erred in deleting the insurer of the offending vehicle without proper notice and opportunity, and remanded the case for fresh adjudication.

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The appeal arises from a judgment and award of the Motor Accidents Claims Tribunal, Salcete, Margao, in Claim Petition No.86/2000. The accident occurred on 2nd March 2000, when a Mahindra jeep bearing temporary registration number MH-15-TRE-969 dashed against the motorcycle of Jose A. Dias, who died in the accident. The claim petition was filed by the widow and two minor children of the deceased. The Tribunal directed respondents no.1 (driver), 3 (dealer), and 4 (appellant, New India Assurance Co. Ltd.) to pay compensation of Rs.4,68,650/- with interest at 9% p.a. jointly and severally. The appellant challenged the award on the ground that the vehicle was insured with United India Assurance Co. Ltd. (original respondent no.5) and that the Tribunal had wrongly deleted that insurer from the claim petition. The appellant submitted that if the deletion was found to be erroneous, the matter should be remanded. The learned counsel for the original claimants (respondents no.1 and 2) and the dealer (respondent no.5) supported the appellant on this point. The court considered the submissions and found that the Tribunal had deleted the United India Assurance Co. Ltd. without notice to the appellant and without giving an opportunity to contest. The court held that the deletion was improper and that the matter required remand for fresh adjudication on the liability of the correct insurer. The court set aside the impugned judgment and award and remanded the claim petition to the MACT for fresh disposal in accordance with law, after giving notice to all parties including the United India Assurance Co. Ltd. The court directed the parties to appear before the MACT on 10th February 2014.

Headnote

A) Motor Accident Claims - Liability of Insurer - Deletion of Party - The Tribunal deleted the insurer of the offending vehicle (United India Assurance Co. Ltd.) from the claim petition without notice to the appellant (another insurer) and without giving opportunity to contest. Held that such deletion was improper and the matter requires remand for fresh adjudication on the liability of the correct insurer. (Paras 2-5)

B) Motor Accident Claims - Temporary Registration - Liability - The offending vehicle bore a temporary registration number issued by the RTO, Mumbai. The Tribunal held the dealer and the appellant (insurer of the dealer) liable. The appellant contended that the vehicle was insured with United India Assurance Co. Ltd. and that the Tribunal erred in deleting that insurer. Held that the issue of which insurer is liable needs fresh determination. (Paras 3-5)

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Issue of Consideration

Whether the Tribunal was justified in deleting the United India Assurance Company Ltd. (original respondent no.5) from the claim petition without notice and without giving opportunity to the appellant (New India Assurance Co. Ltd.) to contest the liability, and whether the matter should be remanded for fresh consideration.

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Final Decision

The appeal is allowed. The impugned judgment and award of the MACT, Salcete, Margao, in Claim Petition No.86/2000 is set aside. The claim petition is remanded to the MACT for fresh disposal in accordance with law, after giving notice to all parties including the United India Assurance Co. Ltd. The parties are directed to appear before the MACT on 10th February 2014. No order as to costs.

Law Points

  • Motor Vehicles Act
  • 1988
  • Section 149
  • Section 166
  • Section 170
  • liability of insurer
  • temporary registration
  • deletion of party without notice
  • remand
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Case Details

2014 LawText (BOM) (01) 99

First Appeal No.166 of 2009

2014-01-17

T.V. Nalawade, J.

Shri E. Afonso for Appellant; Shri D. Pangam for Respondents No.1 & 2; Shri Y.V. Nadkarni with Ms. D. Shirgam for Respondent No.6; Shri V. Palekar for Respondent No.5

The New India Assurance Co. Ltd.

Miss Clancy Arcanjia Dias & Ors.

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Nature of Litigation

First appeal against judgment and award of Motor Accidents Claims Tribunal in a claim petition for compensation arising from a fatal motor accident.

Remedy Sought

The appellant (New India Assurance Co. Ltd.) sought to set aside the Tribunal's award and to remand the matter for fresh consideration, contending that the correct insurer (United India Assurance Co. Ltd.) was wrongly deleted from the claim petition.

Filing Reason

The appellant challenged the Tribunal's decision holding it liable to pay compensation, arguing that the offending vehicle was insured with United India Assurance Co. Ltd. and that the Tribunal had erroneously deleted that insurer without notice.

Previous Decisions

The Motor Accidents Claims Tribunal, Salcete, Margao, in Claim Petition No.86/2000, directed the driver, dealer, and New India Assurance Co. Ltd. to pay compensation of Rs.4,68,650/- with interest at 9% p.a. jointly and severally.

Issues

Whether the Tribunal was justified in deleting the United India Assurance Company Ltd. from the claim petition without notice to the appellant and without giving opportunity to contest. Whether the matter should be remanded for fresh adjudication on the liability of the correct insurer.

Submissions/Arguments

The appellant submitted that the vehicle was insured with United India Assurance Co. Ltd. and that the Tribunal wrongly deleted that insurer; if the deletion was erroneous, the matter should be remanded. The learned counsel for the original claimants and the dealer supported the appellant on the point of remand. The other respondents did not oppose the remand.

Ratio Decidendi

The Tribunal's deletion of a party (insurer) without notice to the other parties and without giving opportunity to contest is improper. When the liability of the correct insurer is in question, the matter should be remanded for fresh adjudication after impleading all necessary parties.

Judgment Excerpts

During arguments, the learned Counsel for appellant submitted that original respondent no.5, The United India Assurance Company Ltd. was liable to pay the compensation as the vehicle was insured by the owner with this Insurance Company and if it is found that respondent no.2 from the Claim Petition was wrongly deleted, the matter be remanded back. The decision of the Tribunal is challenged only by respondent no.4, The New India Assurance Company Ltd. The challenge is on the ground that the vehicle was bearing Temporary Registration Number issued by the RTO, Mumbai.

Procedural History

The claim petition (No.86/2000) was filed before the MACT, Salcete, Margao, which awarded compensation against the driver, dealer, and New India Assurance Co. Ltd. The New India Assurance Co. Ltd. filed First Appeal No.166/2009 before the High Court of Bombay at Goa, challenging the award. The High Court heard the appeal and reserved judgment on 16th January 2014, pronouncing it on 17th January 2014.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 149, Section 166, Section 170
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