ORIENTAL INSURANCE CO LTD Vs. AMRITBAI

JUDGEMENT

(1.) -This writ petition has been filed by the petitioner, Oriental Insurance Co. Ltd., challenging the award dated 1.8.2008 passed by the Lok Adalat and the order dated 10.12.2008 passed by the Tribunal rejecting the petitioner's application for setting aside the award.

(2.) BRIEF facts are that the respondents, who are the widow and minor children of deceased Jagdish Kachnar, had filed the claim petition before the Motor Accidents Claims Tribunal, Indore stating that the deceased Jagdish met with an accident on 23.10.2007 involving motor cycle bearing No. MP 09-LL 5583. The petitioner was arrayed as respondent No. 3 in the claim petition as insurer of the vehicle. The matter was placed before the Lok Adalat held on 1.8.2008 and on the basis of the compromise arrived at between the parties, Lok Adalat passed the award dated 1.8.2008 amounting to Rs. 4,00,000. The petitioner, insurance company thereafter filed an application before the Tribunal praying for setting aside the award on the ground that later on insurance company found one investigation report in its file on the basis of which the insurance company could not be held liable. The Tribunal by the impugned order dated 10.12.2008 rejected the application. Aggrieved with the award passed by the Lok Adalat and the order of the Tribunal dated 10.12.2008, the petitioner has filed the present writ petition.

(3.) THE award dated 1.8.2008 was passed by the Lok Adalat in terms of the provisions of the Legal Services Authorities Act, 1987. Under section 21 of the Act such an award is final and binding and it is like a decree of the court. Section 21 of the Act provides that: