NEW INDIA ASSURANCE COMPANY LTD. Vs. ANWARI

JUDGEMENT

(1.) This appeal, under Section 173 of the Motor Vehicles Act, 1988, has been preferred by the appellant The New India Insurance Company Ltd. against the judgment and award dated 02.04.2010 passed in M.A.C.P. no.289 of 2008, whereby learned Tribunal has partly allowed the claim petition against the appellant Insurance Company Ltd. for a sum of Rs. 3,24,000/-along with interest @ 7 per cent per annum from the date of filing the claim petition till the date actual payment is made. However, the learned Tribunal has given recoverable rights to the appellant Insurance Company on the principle of 'pay and recover' and has granted liberty to the appellant to recover the amount from respondent no.4, the owner of the offending vehicle.

(2.) Despite service, none has appeared for respondent no.4, owner of the offending vehicle. Appeal was filed by the owner respondent no.4, but the same has also been dismissed in default by this Court. Thus, the findings recorded by the Tribunal against the respondent no.4, are hereby affirmed. Now the sole question which is left for determination of this Court is whether the tribunal has wrongly directed the appellant to first satisfy the award on the principle of 'pay and recover'.

(3.) In Manuara Khatun and others vs. Rajesh Kr. Singh and others, 2017 (4) SCC 796, the Hon'ble Apex Court has observed as follows: