ANURAG KUMAR Vs. UNITED INDIA INSURANCE CO LTD

JUDGEMENT

(1.) A short ground on which the judgment dated 07.08.2010, awarding a compensation of `11,52,850/- along with interest @ 7.5% per annum in favour of the Appellant who suffered injuries in an accident which occurred on 31.03.2009, has been challenged is that although the First Respondent United India Insurance Co. Ltd. was under obligation to satisfy its liability to pay the compensation in the first instance in case of an injury to third party, the Claims Tribunal straightway made the owner of the vehicle liable to pay the compensation.

(2.) ON the liability, the Claims Tribunal held as under:

(3.) THIS Court had the occasion to consider the statutory liability of the Insurance Company to satisfy the award under Section 149(4) of the Act. In MAC APP.329/2010 titled `Oriental Insurance Co. Ltd. v. Rakesh Kumar & Ors.' decided on 29.02.2012, this Court considered the judgments in Malla Prakasarao v. Malla Janaki & Ors.(2004) 3 SCC 343, National Insurance Company Limited v. Kusum Rai & Ors., (2006) 4 SCC 250; National Insurance Company Limited v. Vidhyadhar Mahariwala & Ors., (2008) 12 SCC 701; Ishwar Chandra & Ors. v. The Oriental Insurance Company Limited & Ors., (2007) 10 SCC 650; and Premkumari & Ors. v. Prahalad Dev & Ors., (2008) 3 SCC 193, Sohan Lal Passi v. P. Sesh Reddy, (1996) 5 SCC 21, New India Assurance Co., Shimla v. Kamla and Ors., (2001) 4 SCC 342, United India Insurance Company Ltd. v. Lehru & Ors., (2003) 3 SCC 338, National Insurance Company Limited v. Swaran Singh & Ors., (2004) 3 SCC 297, Oriental Insurance Co. Ltd. v. Zaharulnisha and Ors., (2008) 12 SCC 385, National Insurance Company Limited v. Geeta Bhat & Ors., 2008 (12) SCC 426, and National Insurance Company Limited v. Laxmi Narain Dhut, (2007) 3 SCC 700. THIS Court held that in view of the authoritative judgments of the Supreme Court in Sohan Lal Passi v. P. Sesh Reddy, (1996) 5 SCC 21 and National Insurance Company Limited v. Swaran Singh & Ors., (2004) 3 SCC 297, the Insurance Company was under obligation to satisfy the award in favour of a third party in spite of willful breach in the terms of policy. THIS Court quoted para 73, 104, 105, 106 and 107 of Swaran Singh (supra) and opined that the Insurance Company can recover the compensation paid to the third party from the insured in the same proceedings without filing a separate civil suit. Paras 104, 105 and 107 of Swaran Singh (supra) are extracted hereunder: