The Single Bench of the Bombay High Court consisting of Justice V.G.Bisht set aside an order given by the Motor Vehicle Claim Tribunal and directed the Insurance Company to pay the compensation to the respondents/claimants along with accrued interest after recovering it from the owner of the vehicle (respondent no.6).

Facts

This first appeal was preferred by the New India Assurance Company Limited (original respondent) against the judgment and order by the M.A.C.T thereby directing the appellant and others to pay jointly and severally to the claimant a sum of Rs.7,11,000/- towards compensation together with simple interest thereon at rate of 6% p.a. from the date of petition till realization of entire amount within two months from the passing of the judgment and order.

Contentions Made

Appellant: As far as the amount of award is concerned, it was not disputed. However, the learned Tribunal should have considered that on the date of accident, the driver was not holding a valid driving license, and, in such circumstances, it ought to have ordered that the appellant is entitled to recover the amount of award from the owner of the vehicle of the offending truck, which was rejected by the learned Member.

Respondent: It admitted the position of law and had no objection if it was so ordered by the Court.

Observations of the Court

Relying on Parminder Singh vs. New India Assurance Company Ltd. & Ors and Shamanna & Anr vs. Divisional Manager, Oriental Insurance Company Limited & Ors, the Bench observed that:

“From the impugned judgment and order at hand it is more than clear that on the date of accident the driver of the offending vehicle was having no valid driving license. This being so, the learned Member, M.A.C.T., could not have overlooked that infirmity while fixing the responsibility of the respondents. It seems that the learned Member also did not keep in mind the above dictum of the Hon'ble Apex Court and for that simple reason the finding of the learned Member is not sustainable in law.”

Judgment

The impugned judgment and order, in so far as amount of award is concerned, the same was affirmed. Further, in so far as direction given to the appellant directing to pay the sum of Rs.7,11,000/- towards compensation together with simple interest is concerned, is set aside, and the appeal is partly allowed. The Bench directed that the appellant Insurance Company shall pay the compensation to the respondents/claimants along with accrued interest and the appellant Insurance Company shall recover the same from the respondent no.6.

Case Name: Smt. Manisha Sanjay Nikam and Ors. vs The New India Assurance Co. Ltd. Through Mumbai Legal Hub

Citation: FIRST APPEAL NO.172 OF 2019

Bench: Justice V.G.Bisht

Decided on: 17th February 2022

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Ayesha