DIVISIONAL MANAGER NEW INDIA Vs. SUBHAGINI SETH

JUDGEMENT

(1.) ON May 27, 1998 there was an accident between a Mini Truck bearing registration No. OR -15 -5756 and a Dumper. One Ramesh Seth was critically injured in the accident and ultimately succumbed to his injuries in the hospital on May 29, 1998. His widow and two children filed application for compensation before the 2nd. Motor Accident Claims Tribunal, Sambalpur, claiming that deceased Ramesh was the helper of the Mini Truck. In the said claim case the claimant filed application under Section 140 of the Motor Vehicles Act (in short, 'the Act') for interim compensation. By judgment and order dated April 15, 2000, the Tribunal granted interim compensation of Rs. 50,000/ - to be equally shared by the Insurer of the Mini Truck and the Dumper. New India Assurance Company, the Insurer of the Dumper has filed this appeal against the aforesaid interim award dated April 15, 2000.

(2.) MR . P. Ray, Learned Counsel for the Appellant - Insurance Company has strenuously urged that the Insurance Company is not liable to satisfy the interim award under Section 140 of the Act unless the Insurer is held liable to satisfy the award in the main claim case. He further submits that when the Insurer raisesdefences available to it. Tribunal should adjudicate upon those defences before directing the Insurance Company to satisfy the interim award. In support of his submission Mr. Ray refers to the absence of any provision like Section 147 of the Act in Chapter -10. According to him in view of Section 144 of the Act, Chapter -10 has the overriding effect and the liability of the Insurer under Section 147 of the Act cannot be extended to the liability under Section 140 of the Act. 'Overriding effect' does not mean that any other provision contained any other chapter cannot be invoked. 'Overriding effect' implies, in case of any conflict with any other provision in any other chapter, provisions of Chapter -10 will have precedence over such conflicting provisions. Moreover, definition of 'liability' in Section 145(c) of the Act demolishes the submission of Mr. Ray. Liability has been defined in Section 145(C) of the Act as :

(3.) THUS it is true that if the Insurer is found not liable to satisfy the main award, it cannot be held liable to satisfy the interim award but that does not mean that the Insurance Company cannot be directed to satisfy the interim award unless the main claim case is finally decided. Such view is opposed to the very purpose and object behind the enactment of Section 140 of the Act. In Oriental Insurance Co, Ltd. v. Hansrajbhai v. Kodala and Ors., 2001 (2) TAC 312 (SC) Supreme Court has observed ;