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1997 DIGILAW 454 (MP)

United India Insurance Co. Ltd. v. Indra

1997-08-01

B.R.ARORA

body1997
JUDGMENT B.R. Arora, J. 1. This appeal is directed against the award dated 7.2.1994 passed by the Judge, Motor Accidents Claims Tribunal, Tonk, by which the learned Judge of the Tribunal awarded a sum of Rs. 25,000 as compensation for 'no fault liability' under Section 140 of the Motor Vehicles' Act. 2. The contention of learned Counsel for the appellant is that on 20.4.1993 no policy covering the insurance of the vehicle in question was issued in favour of the owner of the vehicle and policy was only for the period with effect from 21.4.1993 to 20.4.1994 and, therefore, the insurance company is not liable to indemnify the insured and the learned Judge of the Tribunal was not justified in directing the appellant to pay an amount of Rs. 25,000 against 'no fault liability'. 3. Section 140 of the Act deals with the liability to pay compensation in certain cases on the principle of 'no fault liability'. At the stage of awarding the compensation, the court has only to see whether the accident took place with a motor vehicle? So far as the liability of the insurance company to pay compensation at this stage is concerned, the court is further required to see whether the vehicle is insured. In the present case, there is no dispute that the accident took place with a motor vehicle and there was an insurance policy covering the risk. The payment was made on 20.4.1993 and the policy and the covering note show that the insurance shall be for the period from 21.4.1993 to 20.4.1994. What will be the effect of the payment made on 20.4.1993 and whether the policy covers the insurance of the motor vehicle with effect from 20.4.1993, is the matter of evidence which will be decided by the Tribunal at the time of final hearing of the case. But so far as the payment under Section 140 of the Act is concerned both the requirements of the law stand satisfied as the accident took place with a motor vehicle and the vehicle is covered with an insurance policy. In this view of the matter the learned Judge of the Tribunal was right in directing the insurance company to make payment of compensation of Rs. 25,000 for 'no fault liability' under Section 140 of the Motor Vehicles Act, 1988. In this view of the matter the learned Judge of the Tribunal was right in directing the insurance company to make payment of compensation of Rs. 25,000 for 'no fault liability' under Section 140 of the Motor Vehicles Act, 1988. No illegality has been committed by the learned Judge of the Tribunal in awarding the compensation. 4. In the result, I do not find any merit in this appeal and the same is hereby dismissed.