ORIENTAL INSURANCE CO LTD Vs. VEERAMMA

JUDGEMENT

(1.) In this appeal presented under Section 173 of the Motor Vehicles Act, 1988, the following important questions arises for consideration:- (1) Whether in an appeal presented under Section 173 of the Motor Vehicles Act, 1988, an appellant presenting the appeal is required to deposit Rs. 25,000/- or 50% of the amount awarded by the Tribunal, whichever is less, if only directed by the High Court? and (2) How the deposit should be made?

(2.) Section 173 of the Act reads:-"173. Appeals:- (1) Subject to the provisions of sub-section (2), any person aggrieved by an award of a Claims Tribunal may, within ninety days from the date of the award, prefer an appeal to the High Court: Provided that no appeal by the person who is required to pay any amount in terms of such award shall be entertained by the High Court unless he has deposited with it twenty-five thousand rupees or fifty per cent, of the amount so awarded, whichever is less, in manner directed by the High Court: Provided further that the High Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. (2) No appeal shall lie against any award of a Claims Tribunal if the amount in dispute in the appeal is less than ten thousand rupees." While sub-section (1) confers a right of appeal to the High Court on any person aggrieved by an award made by the Motor Accidents Claims Tribunal, the first proviso imposes a condition to the effect that such an appeal shall not be entertained, unless the appellant has deposited with it Rs. 25,000/- or 50% of the amount so awarded, whichever is less, in the manner directed by the High Court.

(3.) After this appeal was filed, appeal paperswere returned to the learned counsel calling upon him to make the deposit in view of the proviso to Section 173(1) of the Act. The learned counsel returned the papers stating that the question of depositing arises if only the High Court directs that such a deposit should be made. He further stated that in a case where the Insurance Company pleads that it was not liable to pay the amount awarded in view of Section 147 of the Act, it is not necessary for the Insurance Company to make the deposit.