On Thursday, the Supreme Court in Motor Accident compensation case titled as URMILA DEVI & ORS. vs BRANCH MANAGER, NATIONAL INSURANCE COMPANY LTD. & ANR. has held that claimant can file cross-objections in an appeal filed by the insurer against the award.

The Apex Court with its observations set aside a Patna High Court judgement in which had held that such a cross-objection by the claimant is not maintainable.

What the High Court held? 

The High Court in its verdict reasoned that as the insurer's appeal was only against the rejection of its contentions regarding breach of conditions by the insured, the claimants could not have sought cross-objection.

CASE DETAILS

In the present case, the insurer's appeal was only with respect to not absolving it from liability to pay compensation. Therefore as per the HC's ruling, unless the insurer challenges the quantum, the claimants cannot file cross-appeal for enhanced compensation.

SC PROCEEDINGS 

The Apex Court held the High Court's view to be unsustainable.

The bench comprising of CJI SA Bobde, Justices Surya Kant and BR Gavai observed: 

"A conjoint reading of the provisions of Section 173 of the M.V. Act; Rule 249 of the Bihar Motor Vehicle Rules, 1992; and Order XLI rule 22 of the CPC would reveal, that there is no restriction on the right to appeal of any of the parties."

TheTop Court also held that the distinction is drawn by the HC regarding an appeal against quantum of compensation and appeal against liability to be legally untenable.

The Court added: 

"When in an appeal the appellant could have raised any of the grounds against which he is aggrieved, we fail to understand, as to how a respondent can be denied to file cross­objection in an appeal filed by the other side challenging that part of the Award with which he was aggrieved. We find, that the said distinction as sought to be drawn by the High Court is not in tune with a conjoint reading of the provisions of Section 173 of the M.V. Act; Rule 249 of the Bihar Motor Vehicle Rules, 1992; and Order XLI rule 22 of the CPC."

In its finding, the Apex Court also noted that the appeal of the insurer had challenged the entire award.

It observed claimants were also impleaded as respondents in the insurer's appeal:

"In such Motor Accident compensation case Motor Accident compensation case circumstances, the High Court has erred in declining to consider the cross­objection of the appellants herein (the claimants) on merits."

The Top Court also took note that as per Order XLI Rule 22(4) of CPC, the cross-objection can be continued even if the appeal is dismissed for default and thus accordingly allowed the appeal.

It thus, in the end, it set aside the judgement and directed the High Court to deal with the cross-objection on merits.

The judgement was delivered by CJI SA Bobde, Justice Surya Kant and Justice BR Gavai on 30-01-2020.

Read Judgement Here:

 

 

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