SHASHI BHUSHAN SINGH Vs. ORIENTAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) The two interlocutory applications have been filed by the owner of the vehicle for holding that the direction issued by the Joint Registrar (Judicial) by his order dated 18.10.2005 to pay Rs. 25,000/- as specified under the proviso to Section 173 of Motor Vehicles Act for maintaining the appeal is not warranted by law and further to recall/modify the order dated 9.3.2006 of this Court by which the appellant was directed to pay the statutory amount under the proviso to Section 173 of the Motor Vehicles Act.

(2.) In the present matter, the Tribunal has in its judgment and award held that although the Insurer-Oriental Insurance Company respondent No. 1 is liable to pay compensation to the claimants being third party but it is entitled to recover its paid amount from the insured-opposite party No. 1 - appellant, who has not been able to prove that the vehicle was being driven by a driver having valid licence at the time of accident. The admitted position is that the Insurance Company has deposited the amount under the award. The owner has come to this Court against the said award so far as recovery of the amount paid by the Insurer from him is concerned.

(3.) Learned Counsel for the appellant submits that under Section 173 of the Act and its proviso any person aggrieved by an award may prefer an appeal to the High Court but no appeal by the person who is required to pay any amount in terms of such award amount shall be entertained unless he has deposited with it Rs. 25,000/- or 50% of the amount whichever is less. It is submitted by learned Counsel that the provision to pay any amount in terms of such award has to be read as payment of the amount to the claimants. It is submitted that the main purpose of the Act is to give benefit to the claimant and the said purpose being satisfied on the awarded amount being deposited by the insurance company, the interest of the claimant shall not be affected by the decision of the appeal one way or the other.