UNITED INDIA INSURANCE CO LTD Vs. JABEEN

JUDGEMENT

(1.) AS against the award passed by the Motor Accidents Claims tribunal,'whether claimants can enter into terms with the Insurance Company in full and final settlement and if so, can the claimants resile from such compounding terms", are the points falling for consideration in this revision.

(2.) BACKGROUNDS facts in nutshell are as follows:- 2. 1. Claiming compensation for death of one Syed Nasser, respondents/claimants filed O. S. No. 1478/1996, claiming compensation of rs. 6,00,000/ -. Tribunal has awarded compensation of Rs. 5,03,470/- on 22. 01. 1999. According to the Insurance Company, the then counsel Mr. Udayakumar gave a proposal dated 08. 04. 1999, accepting the amount 30% lesser than the awarded amount in full and final settlement of the award passed. Respondents 1 to 5 have executed an undertaking that they would accept a sum of Rs. 5,00,000/-in full and final settlement of the award amount including interest and cost. Claimants filed memo for Full satisfaction of the award amount and withdrew the said amount. 2. 2. Denying execution of any compromise memo, respondents/claimants filed E. P. No. 970/2001 claiming balance amount of rs. 3,00,497. 25. Revision Petitioner/insurance Company has filed counter statement referring to the compromise memo and withdrawal of amount by the Respondents and recording of FULL SATISFACTION MEMO. 2. 3. Denying any compounding of the award and further denying knowledge of the contents of the said Memo, Respondents filed application under Section 47 CPC " E. A. No. 1165/2004. 2. 4. Detailed enquiry was conducted. Both parties adduced oral and documentary evidence. Doubting the Memo of Compromise, Court below observed that claimants would not have agreed to give up interest. Finding that there could not have been Full Satisfaction and that Insurance Company is bound to pay balance with interest, Execution Court allowed application filed under sec. 47 CPC and directed the Insurance Company to pay the balance amount of rs. 3,00,497, which is challenged in this Revision Petition.

(3.) I have carefully examined the records and given thoughtful consideration to the contentions of both parties.