Bombay High Court Dismisses Insurance Company's Appeal in Motor Accident Claim Under Section 163A MV Act — Pay and Recover Direction Upheld. The Court held that the Insurance Company must pay compensation to the third-party claimant and recover from the insured owner, as the deceased was an occupant of an autorickshaw hit by the insured motorcycle.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The case arises from a claim petition under Section 163A of the Motor Vehicles Act, 1988, filed by the legal heirs of Devendra Jotirao Wankhede, who died in a motor accident on 29-09-2008. The deceased was an occupant of an autorickshaw bearing registration No.MH27/P5208, which was dashed by a Hero Honda Motor Cycle bearing registration No.MH27/AE9464 near Village Tondgaon. The motor cycle was owned by respondent No.5, Ganesh s/o Bhumaka Mavaskar, and insured with the appellant, ICICI Lombard General Insurance Co. Ltd. The Motor Accident Claims Tribunal, by its award dated 23-09-2013, held the owner liable to pay compensation of Rs.3,68,000 to the claimants (respondent Nos.1 to 4) with interest at 6% per annum from the date of filing of the petition. The Tribunal further directed the Insurance Company to deposit the amount and then recover it from the owner. The Insurance Company appealed, challenging the direction to pay and recover. The High Court framed two issues: whether the direction to pay and recover is liable to be interfered with, and whether the compensation amount is correct. The Court noted that the deceased was a third party (occupant of autorickshaw) and the motor cycle was insured. Relying on the principle of pay and recover, the Court held that the Insurance Company is liable to pay compensation to third parties and then recover from the insured owner. The Court also found no reason to interfere with the quantum of compensation. Accordingly, the appeal was dismissed.

Headnote

A) Motor Accident Claims - Pay and Recover - Section 163A Motor Vehicles Act, 1988 - The Tribunal directed the Insurance Company to deposit compensation and recover from the owner of the offending vehicle. The High Court upheld this direction, holding that the Insurance Company is liable to pay compensation to third parties and then recover from the insured owner. (Paras 1-3)

B) Motor Accident Claims - Compensation - Section 163A Motor Vehicles Act, 1988 - The Tribunal awarded Rs.3,68,000 as compensation for the death of an occupant of an autorickshaw in a collision with a motorcycle. The High Court did not interfere with the quantum of compensation. (Paras 1-3)

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Issue of Consideration

Whether the Tribunal's direction to the Insurance Company to deposit compensation and recover from the owner is liable to be interfered with, and whether the compensation amount of Rs.3,68,000 is correct.

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Final Decision

The appeal is dismissed. The award of the Motor Accident Claims Tribunal is confirmed.

Law Points

  • Pay and recover
  • Section 163A Motor Vehicles Act
  • 1988
  • Occupant of autorickshaw
  • Third party
  • Liability of insurer
  • Recovery from owner
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Case Details

2016 LawText (BOM) (03) 145

First Appeal No.29 of 2014

2016-03-17

R.K. Deshpande

Shri A.J. Pophaly for Appellant, Shri P.R. Agrawal for Respondent Nos.1 to 4

ICICI Lombard General Insurance Co. Ltd.

Mathurabai wd/o Devendra Wankhede and others

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Nature of Litigation

First appeal against the award of Motor Accident Claims Tribunal in a claim petition under Section 163A of the Motor Vehicles Act, 1988.

Remedy Sought

The appellant Insurance Company sought to set aside the direction to deposit compensation and recover from the owner.

Filing Reason

The Insurance Company challenged the Tribunal's direction to pay compensation and recover from the owner.

Previous Decisions

The Motor Accident Claims Tribunal awarded compensation of Rs.3,68,000 with interest at 6% per annum and directed the Insurance Company to deposit and recover from the owner.

Issues

Whether the direction to the Insurance Company to deposit compensation and recover from the owner is liable to be interfered with? Whether the Tribunal was right in awarding compensation of Rs.3,68,000?

Submissions/Arguments

The appellant Insurance Company argued that the direction to pay and recover should be set aside. The respondents/claimants supported the Tribunal's award.

Ratio Decidendi

In a claim under Section 163A of the Motor Vehicles Act, 1988, the Insurance Company is liable to pay compensation to third parties and then recover the amount from the insured owner of the offending vehicle.

Judgment Excerpts

In a claim petition filed under Section 163A of the Motor Vehicles Act, 1988, registered as M.A.C.P. No.174 of 2008, the Motor Accident Claims Tribunal, by its award dated 23-9-2013, has held the respondent No.5... liable to pay the compensation of Rs.3,68,000/- to the respondent Nos.1 to 4/claimants on account of death of one Devendra Jotirao Wankhede, with interest at the rate of 6% per annum from the date of filing of the petition till its realization. The Tribunal has further directed the appellant-Insurance Company to deposit an amount of compensation payable to the claimants and then to recover the said amount from the respondent No.5, the owner of the vehicle.

Procedural History

The claim petition (M.A.C.P. No.174 of 2008) was filed under Section 163A of the Motor Vehicles Act, 1988. The Motor Accident Claims Tribunal passed an award on 23-09-2013. The Insurance Company filed First Appeal No.29 of 2014 before the Bombay High Court, Nagpur Bench, which was dismissed on 17-03-2016.

Acts & Sections

  • Motor Vehicles Act, 1988: 163A
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