NATIONAL INSURANCE CO LTD Vs. YALLAWWA

JUDGEMENT

(1.) ALL these appeals are pertaining to the same accident. About 44 persons were travelling in a tractor-trailer to attend the funeral function. As a result of the accident, 9 inmates died and 27 persons were injured. The petitioners sought compensation under section 166 of motor Vehicles Act ('the Act' for short ). The application is made under section 140 of the Act to seek interim compensation. The Tribunal directed the owner and insurer to pay the compensation. Appellant is the insurer.

(2.) IT is the contention of the respondents that an appeal under section 173 of the Act, would not lie against an order under section 140 of the Act. In this regard, the decision of the Divisional Controller, Maharashtra state Road Trans. Corpn. v. Bapu Onkar chaudhari, 2004 ACJ 35 (Bombay), is relied on. In the said decision, Bombay high Court interpreting rule 281 of the maharashtra Motor Vehicles Rules, 1989, held that an order passed under section 140 of the Act, is not an award.

(3.) THE Full Bench decision of Karnataka high Court pertains to an appeal against grant of interim compensation under section 92-A of the Motor Vehicles Act, 1939 which corresponds to section 140 of Motor vehicles Act, 1988, wherein it is held that while granting interim compensation, it is also necessary that liability of insurer is to be decided on the basis of the terms of policy while fastening the liability. The full Bench decision impliedly affirms the view that an appeal under section 173 would lie against an interim award. The rule 250 of the Karnataka Motor Vehicles rules makes it clear that an order passed under section 140 of the Act is also an award. Therefore, it becomes appealable under section 173 of the Act.