Case Note & Summary
The case arises from a motor accident claim petition (M.A.C.P. No.1621/2009) filed before the Motor Accident Claims Tribunal, Panchmahals at Godhara. The Tribunal awarded compensation of Rs. 1,03,440/- to the victim of the road accident. The Oriental Insurance Company Ltd., the appellant, challenged the award under Section 173 of the Motor Vehicles Act, 1988, primarily on the ground that the Tribunal erred in considering the written statement at Exh:42 and in passing a pay and recovery order despite the policy being a liability-only policy without premium for a risk policy rider. The Insurance Company sought to be exonerated from liability. The High Court, after hearing the appellant's counsel and perusing the record, observed that the Tribunal had properly appreciated evidence and exonerated the insurance company from paying compensation but directed it to pay and recover from the owner. The Court noted that the claimant being a third party, the Insurance Company is duty-bound to satisfy the award under Section 150 of the Act as the policy was not in dispute. However, the Court found that the compensation amount of Rs. 1,03,440/- was meager and the award appeared just and reasonable. Therefore, the Court disposed of the First Appeal solely on the ground of the smallness of the amount, without expressing any opinion on the merits or the question of law raised. The Court clarified that the dismissal would not operate as res judicata and would not affect other proceedings arising from the same accident or award. The appeal was dismissed with no order as to costs, and the awarded amount was directed to be disbursed to the claimants.
Headnote
A) Motor Accident Claims - Compensation - Smallness of Amount - First Appeal dismissed on ground of meager compensation amount - Court held that where the compensation awarded is just and reasonable and the amount is small, no interference is warranted, and the appeal may be disposed of without deciding merits or legal questions (Paras 5-6). B) Motor Accident Claims - Pay and Recovery - Liability of Insurance Company - Tribunal's order directing insurance company to pay and recover from owner upheld - Court held that insurance company is duty bound to satisfy award under Section 150 of Motor Vehicles Act, 1988 as policy is not in dispute, and claimant being third party (Paras 3-4). C) Civil Procedure - Res Judicata - Not Applicable - Court clarified that dismissal of appeal on ground of smallness of amount does not operate as res judicata and will not bar other proceedings arising from same accident or same judgment and award (Para 5).
Issue of Consideration
Whether the First Appeal against a compensation award of Rs. 1,03,440/- should be entertained given the meager amount involved, and whether the Tribunal's order of pay and recovery was correct.
Final Decision
First Appeal dismissed. No order as to costs. Record and proceedings and amount, if any, lying before the Court to be transmitted to the concerned Tribunal. Entire awarded amount to be disbursed and released in favour of claimants after due verification by RTGS or NEFT.
Law Points
- Motor Vehicles Act
- 1988
- Section 173
- Section 150
- pay and recovery
- smallness of amount
- res judicata not applicable
