ORIENTAL INSURANCE CO LTD Vs. MISIN JENA

JUDGEMENT

(1.) THIS appeal was filed in the year 2000 challenging the award dated 15/1/2000 passed by the learned Additional district Judge-cum-M. A. C. T. , Sambalpur in Misc. (Accident) Case No. 151/8 of 1998-99 whereby the application for interim compensation filed by the claimants under section 140 of the Motor Vehicles act was disposed of directing the insurer appellant to pay an amount of Rs. 50,000 to the claimants-respondents as no fault liability/interim compensation. In this case vide order dated 26/4/2002 notice was issued to the respondents indicating therein that the appeal shall be disposed of at the stage of hearing on admission and the notice issued on all the respondents have been served.

(2.) HEARD Mr. S. D. Das, learned senior counsel for the appellant, Mr. D. P. Sahoo, learned counsel for the respondent No. 4. None appeared on behalf of respondent nos. 1 to 3 in spite of valid service of notice.

(3.) IT is contended on behalf of appellant that the learned Tribunal has committed an illegality in directing the insurer to pay the amount of Rs. 50,000 under section 140 of the Motor Vehicles Act, even though the appellant insurer took a stand in the written statement that the driver of the offending vehicle had no valid driving licence on the date and time of accident and since the condition of the policy has been violated by the owner of the vehicle the insurer is not liable to pay the amount of compensation awarded under section 140 of the motor Vehicles Act is subject to the final decision in the main claim case. It is now well settled that a dispute with regard to breach of policy conditions by the insured is a matter to be adjudicated between the insured-owner and the insurer and that such dispute will not exonerate the insurer from indemnifying the insured to the extent of compensation awarded under the Motor vehicles Act in favour of the claimants. In the event, the appellant insurer proves breach of policy condition by the insured-owner during the course of hearing of the main claim case as required under law, it is open for the learned Tribunal to pass appropriate order for recovery of the compensation amount paid by the insurer to the claimants from the insured.