BAJAJ ALLIANZ INSURANCE CO LTD Vs. MADHAVA NAIR

JUDGEMENT

(1.) The petitioners who are the Insurance Companies, in all these writ petitions are challenging the jurisdiction of the Permanent Lok Adalats to entertain and adjudicate the claim petitions under the Motor Vehicles Act, against them by the "third parties", i.e., a person who is not a party to the Contract of Insurance.

(2.) For a proper appreciation of the legal issues involved in the case, the factual background is of utmost importance. Therefore, the facts in one of these petitions is set down as hereunder:

(3.) The petitioner contends that, the Legal Services Authorities Act, 1987 (hereinafter for short referred to as 'the Act') was enacted to constitute Legal Services Authorities to provide for free and competent legal services to the weaker section of the society and to ensure that opportunities for securing justice are not denied to any citizen by reason of economic or other disabilities and to organize Lok Adalats to secure the operation of the legal system that promotes justice on a basis of equal opportunity. Chapter VI-A was inserted by Act 32/2002 w.e.f. 11.6.2002 for pre-litigation conciliation and settlement. The said Chapter is not applicable to the claims under the provisions of M.V. Act, as the award passed by the Permanent Lok Adalat is final. The Permanent Lok Adalat by passing the impugned order has assumed jurisdiction. It has proceeded on the assumption that the policy of insurance procured by the owner of a motor vehicle and the service also would include a claim made by the beneficiary under a policy of insurance procured by the insured. The Permanent Lok Adalat proceeds to hold that the Apex Court in the case of United India Insurance Co. Ltd., v. Ajay Sinha and Anr., reported in, CDJ 2008 SC 996 has not laid down any ratio decidendi. Therefore, the petitioner has preferred this Writ Petition challenging the impugned order. After service of notice, the respondents entered appearance.