NEW INDIA ASSURANCE CO.LTD. Vs. SUNITA DEVI

JUDGEMENT

(1.) REFERENCE may be made to the order dated 21.4.2006 which reads as under: This appeal is an example to show as to how the National Insurance Company and their lawyers behave in the matter of payment of compensation. There had been collision between the Trekker and a Truck. The truck was insured with the National Insurance Company and the Trekker was insured with the New India Assurance Company. Three claim cases were filed before the Tribunal. One of the Tribunals disposed of one claim case holding that the accident took place due to gross rash and negligent driving of the Truck driver and accordingly the entire liability was saddled with the National Insurance Company. The National Insurance Company satisfied the award without challenging the same in appeal. Another Tribunal disposed of two remaining claim cases and held that both the drivers of the Trekker and Truck were negligent and accordingly the compensation amount was apportioned at the ratio of 50% and 50% respectively. The appellant New India Assurance Company challenged the said award by filing M.A. No. 296 of 2003. A Division Bench of this Court allowed the appeal and held that there was a specific finding recorded by the Tribunal in the earlier case that the accident took place due to rash and negligent driving of the Truck driver. The Tribunal also considered the fact that one award has been fully satisfied by the National Insurance Company. Accordingly, the appeal was allowed and the National Insurance Company was directed to pay the amount. The instant appeal is another appeal. Although, the officers of National Insurance Company and its panel lawyers are present in Court but they are insisting the Court to comply with the formalities of issuance of notice to the Insurance Company. We very seriously deprecate the attitude of the National Insurance Company. Although, in view of the fact that one of the awards has been satisfied by the National Insurance Company and another judgment of the Division Bench in M.A. No. 296 of 2003 has not been challenged by it, the Company should have fully conceded before the Court for passing the same judgment in this appeal. By not doing so, the Court will comply with the formality of issuance of notice and by the time the appeal will again be taken up for final hearing, it may take number of years and in the event, appeal is allowed, the Insurance Company will have to pay double of the amount now awarded by the Claims Tribunal. It is worth to mention here that the claimants, who are the widow and her minor son and|, daughter, aged about three years and eight years, have been dragged upto this Court and they have appeared in this appeal but because of the attitude of the National Insurance Company, we are. not able to give any relief to the claimant without complying with the formalities of issuance of notice. We, therefore, hold that if the appeal ultimately succeeds and the entire liability is fastened on the National Insurance Company then the amount of compensation shall carry interest at the rate of 22% per annum. Issue notice to respondent No. 7 by registered post, for which requisites must be filed within one week. Let a copy of this order be sent to Chairman of the National Regulatory Authority.

(2.) TODAY Mr. Ghose, learned Counsel appearing for respondent No. 7 National Insurance Company Limited, pressed an application dated 6.1.2006 (IA. No. 1634 of 2006) filed on behalf of respondent No. 7, wherein prayer has been made to allow the respondent -National Insurance Company Limited to deposit the entire amount of compensation for which the appellant -New India Assurance Co. Ltd. has been held liable by the Tribunal. Mr. Ghose further submitted that a direction be issued to the appellant to reimburse the interest on the principal amount from 2003 to 2006.

(3.) IN view of the prayer made in the interlocutory application, the appeal itself is disposed of by modifying the judgment and award to the extent that the respondent No. 7 National Insurance Company Limited shall pay the compensation amount as per the judgment and award.