United India Insurance Company ... vs Hiteshkumar Bhikhabhai Parmar
2021 Latest Caselaw 16695 Guj

     C/FA/1904/2021                             ORDER DATED: 25/10/2021



           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
                    R/FIRST APPEAL NO. 1904 of 2021
                                 With
              CIVIL APPLICATION (FOR STAY) NO. 1 of 2021
                                  In
                    R/FIRST APPEAL NO. 1904 of 2021
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                  UNITED INDIA INSURANCE COMPANY LTD
                                  Versus
                    HITESHKUMAR BHIKHABHAI PARMAR
================================================================
Appearance:
MR MAULIK J SHELAT(2500) for the Appellant(s) No. 1
for the Defendant(s) No. 1
MR MOHSIN M HAKIM(5396) for the Defendant(s) No. 1
NOTICE UNSERVED(8) for the Defendant(s) No. 3
SERVED BY AFFIX(N)(7) for the Defendant(s) No. 2
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 CORAM:HONOURABLE MR. JUSTICE A.G.URAIZEE

                            Date : 25/10/2021
                             ORAL ORDER

1. Heard Mr. Maulik J. Shelat, learned advocate for the appellant and Mr. Mohsin M. Hakim, learned advocate for the respondent No.1.

2. The appellant-Insurance Company has preferred the present appeal under Section 173 of the Motor Vehicle Act, 1988 ("M.V. Act" for short) to assail the judgment and award dated 31.01.2018 passed by the Motor Accident Claims Tribunal (Main) Vadodara @ Savli in MACP No.389/2015 (Old MACP No.1951/2001).

3. Mr. Shelat, learned advocate submits that the appellant had contended in its written submission that the offending vehicle was not insured with the appellant as cheque dated 12.09.2001 for the premium was dishonored on 19.09.2001 and the insured was intimated about the same by registered AD letter dated 19.11.2001. He submits that the accident had occurred on 16.12.2001, and

C/FA/1904/2021 ORDER DATED: 25/10/2021

therefore, before the happening of the accident the insured was informed about the cancellation of the insurance policy. He, therefore, submits that on the date of the accident there was no valid and effective insurance policy in existence, and therefore, the tribunal has committed an error in holding the appellant-Insurance Company liable to pay compensation. He, therefore, urges that the appeal may be allowed and appellant - Insurance Company may be exonerated from its liability to pay the compensation.

4. Mr. Hakim, learned advocate has supported the impugned judgment of the tribunal. He submits that the insurance policy was for the period from 13.09.2001 to 12.09.2002. He, therefore, submits that at the time of the accident the offending vehicle was covered under the insurance policy. He, therefore, submits that the tribunal has not committed any error in fastening the liability of payment of compensation on the appellant - Insurance Company.

5. Having heard learned advocate for the appellant and having perused the impugned judgment and award, this Court is not inclined to entertain the appeal solely on the ground of smallness of amount of compensation awarded by the Tribunal. This Court has refrained from the examining the submission of learned advocates for the appellant regarding the non effective insurance policy on account of its cancellation due to dishonor of cheque of premium as the appeal is dismissed solely on the ground of smallness of amount of compensation. It is further clarified that non entertaining the appeal shall not in any manner be construed as the opinion of Court on the merits

C/FA/1904/2021 ORDER DATED: 25/10/2021

of the appeal and disposal of this appeal shall not operate as precedent.

6. The dismissal of the present appeal shall not preclude the appellant - Insurance Company from instituting any suit to recover the amount of compensation from the driver and owner of the offending vehicle on the ground that the offending vehicle was not covered under any effective insurance policy. However, the suit, if any, instituted by the appellant - Insurance Company shall be decided by the Court concerned independently in accordance with law.

7. The appeal, accordingly, stands dismissed solely on the ground of smallness of the quantum of compensation awarded by the Tribunal.

Order in Civil Application

1. The applicant has deposited the amount of compensation with interest and proportionate costs in the tribunal.

2. Since the main appeal is disposed of by this Court, stay of the impugned judgment and award is hereby vacated and tribunal is directed to disburse the amount of compensation in favour of the the claimant in terms of the award. Rule is discharged.

(A.G.URAIZEE, J)

Manoj