NATIONAL INSURANCE CO LTD Vs. REETA PORWAL

JUDGEMENT

(1.) -This appeal has been preferred by the insurance company from the judgment and order dated 31.8.1988, passed by concerned Motor Accidents Claims Tribunal, Agra. The contention of the appellant is that although the awarded amount is Rs. 2,15,000 but the insurance company has a limited liability in accordance with law, i.e., the Motor Vehicles Act, 1939 (hereinafter referred to as the old Act) to the extent of Rs. 1,50,000. Both, the insurance company and the claimants, are present before this Court but in spite of service of notice the owner is not present.

(2.) A preliminary objection has been raised by the learned counsel appearing for the claimants-respondents before this Court that the appeal is not maintainable in view of Section 110 (2A) of the old Act which is parallel to Section 170 of the Motor Vehicles Act, 1988 (hereinafter referred to as the new Act). In other words, no permission has been granted to the insurance company to contest the claim, therefore, the appeal cannot be maintainable, in view of the ratio of the recent judgment of this Court in Oriental Insurance Company Limited v. Smt. Manju and others, 2007 (4) ADJ 101 : 2007 (2) AWC 1927, following the judgment of three Judge-Bench of Supreme Court in National Insurance Co. Ltd., Chandigarh v. Nicolleta Rohtagi and others, AIR 2002 SC 3350 : 2003 (1) AWC 23 (SC). On the other hand, argument as advanced by the learned counsel appearing for the claimants-respondents is that Section 96 of the old Act is equivalent to Section 149 of the new Act and as per Section 149 (2), if there is any breach of policy, in that case, the insurance company can prefer an appeal irrespective of right of contest, which point is also covered by both the judgments, i.e., Smt. Manju (supra) and Nicolleta Rohtagi (supra).

(3.) LEARNED counsel appearing for the claimants-respondents says that this arguable point could have been raised before the Tribunal earlier or even now, upon notice to the owner so that the claimants should not be made to suffer under benevolent piece of legislation. This is an appeal of 1988. This Court cannot wait indefinitely. We have been told that the principal amount of Rs. 1,50,000 has already been deposited which has been withdrawn by the claimants, therefore, the rest amount on account of interest is directed to be deposited upon calculation within a period of fortnight from this date, which will be released in favour of the claimants within a period of one week thereafter.