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The Branch Manager, National Insurance Company Limited Vs. Periyathambi and Others - Court Judgment

LegalCrystal Citation
CourtChennai Madurai High Court
Decided On
Case NumberC.M.A(MD)No. 397 of 2014 & M.P.(MD).No. 2 of 2014
Judge
AppellantThe Branch Manager, National Insurance Company Limited
RespondentPeriyathambi and Others
Excerpt:
motor vehicles act, 1988 - section 173 - .....is decided against the owner and in favour of the insurer. before release of the amount to the insured, owner of the vehicle shall be issued a notice and he shall be required to furnish security for the entire amount, which the insurer will pay to the claimants. the offending vehicle shall be attached, as a part of the security. if necessity arises the executing court shall, take assistance of the concerned regional transport authority. the executing court shall pass appropriate orders in accordance with law as to the manner in which the insured, owner of the vehicle shall make payment to the insurer. in case there is any default it shall be open to the executing court to direct realization by disposal of the securities to be furnished or from any other property or properties of the.....
Judgment:

(Prayer:Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988 against the Order and Decreetal Order dated 22.03.2013 and made in M.C.O.P.No.675 of 2010, on the file of the Motor Accidents Claims Tribunal / Principal District Judge, Pudukottai.)

1. The appellant/Insurance Company Limited has filed the present C.M.A(MD)No.397 of 2014, challenging the award passed in M.C.O.P.No.675 of 2010, dated 22.03.2013, on the file of the Motor Accidents Claims Tribunal/Principal District Judge, Pudukottai.

2. The accident took place on 07.11.2007 near Meemisal Bus stop. Unfortunately, it is a case of fatal accident and the deceased was died instantly on the spot. The heirs of the deceased filed the application for compensation before the Motor Accident Claims Tribunal/Principal District Court, Pudukottai and the Tribunal by considering the facts and circumstances of the case and the other aspects relating to the claim application, passed an award granting Rs.2,85,000/- as total compensation.

3. The present appeal filed by the appellant/Insurance Company solely on the ground that the driver, who was driving the vehicle was not possession the valid driving licence and accordingly the appellant/Insurance Company is to be exonerated from liability. The exoneration of liability is not permissible and the principles laid down by the Hon'ble Supreme Court of India in the case of Oriental Insurance Company Limited vs. Nanjappan and others reported in(2004) 13 SCC 224is applied which is extracted below:

8.Therefore, while setting aside the judgment of the High Court we direct in terms of what has been stated in Baljit Kaur's case (supra) that the insurer shall pay the quantum of compensation fixed by the Tribunal, about which there was no dispute raised, to the respondent-claimants within three months from today. For the purpose of recovering the same from the insured, the insurer shall not be required to file a suit. It may initiate a proceeding before the concerned Executing Court as if the dispute between the insurer and the owner was the subject matter of determination before the Tribunal and the issue is decided against the owner and in favour of the insurer. Before release of the amount to the insured, owner of the vehicle shall be issued a notice and he shall be required to furnish security for the entire amount, which the insurer will pay to the claimants. The offending vehicle shall be attached, as a part of the security. If necessity arises the Executing court shall, take assistance of the concerned Regional Transport authority. The Executing Court shall pass appropriate orders in accordance with law as to the manner in which the insured, owner of the vehicle shall make payment to the insurer. In case there is any default it shall be open to the Executing court to direct realization by disposal of the securities to be furnished or from any other property or properties of the owner of the vehicle, the insured. The appeal is disposed of in the aforesaid terms, with no order as to costs.

4. Accordingly, the award passed by the Tribunal in MCOP.No.675 of 2010, dated 22.03.2013, is confirmed and the Civil Miscellaneous Appeal is disposed of.

5. The learned counsel appearing for the appellant / Insurance Company represented that the entire award amount has already been deposited and the respondents / claimants are permitted to withdraw the entire award amount with accrued interest and cost by filing necessary application before the Tribunal. No costs. Connected miscellaneous petition is closed.


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