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2006 DIGILAW 1256 (JHR)

New India Assurance Co. Ltd. v. Dukhani Devi

2006-10-18

DILIP KUMAR SINHA, M.Y.EQBAL

body2006
JUDGMENT 1. Perused the office note wherein it has been pointed out that till date statutory amount has not been deposited. 2. The instant appeal has been tiled by the appellant-Insurance Company against the judgment and award dated 16.06.2005 passed by Motor Accident Claims Tribunal, Kanchi awarding compensation of Rs. 50,000/- under no fault liability under Section 140 of the M.V. Act, 1988. The memo of appeal was filed on 12.09.2005. More than one year has passed but till date statutory amount has not been deposited. 3. We have come across number of such appeals pending for more than a year for removing the defects including deposit of statutory amount as provided under Section 173 of the M.V. Act. In order to minimize the pendency of such appeals and also for speedy and expeditious disposal of appeals, it is necessary to decide the issue as to when and in which manner the statutory amount shall be deposited. 4. Before expressing our opinion, we would like to quote Section 173 of the M.V. Act, 1988 which reads as under: 173. Appeals (1) Subject to the provisions of Sub-section (2), any person aggrieved by an award of a Claims Tribunal may, within ninety days from the date of the award, prefer an appeal to the High Court. Provided that no appeal by the person who is required to pay any amount in terms of, such award shall be entertained by the High Court unless he has deposited with it twenty five thousand rupees or fifty percent of the amount so awarded whichever is less, in the manner directed by the High Court. Provided further that the High court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. (2) No appeal shall lie against any award of a Claims Tribunal, if the amount in dispute in the appeal is less than ten thousand rupees. 5. It is also worthwhile to quote Rule 27 of Bihar Motor Vehicles Accident Claims Tribunal Rules, 1961 which reads as under: 27. Appeals. (2) No appeal shall lie against any award of a Claims Tribunal, if the amount in dispute in the appeal is less than ten thousand rupees. 5. It is also worthwhile to quote Rule 27 of Bihar Motor Vehicles Accident Claims Tribunal Rules, 1961 which reads as under: 27. Appeals. - (1) Subject to the provisions of sub-rule (2) any person aggrieved by an award of a Claims Tribunal may, within ninety days from the date of the award prefer an appeal to the High Court : Provided that no appeal by the person who is required to pay any amount in terms of such award shall be entertained by the High Court unless he has deposited with it twenty five thousand rupees or fifty percent of the amount so awarded, whichever is less, in the manner directed by the High Court: Provided further that the High Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time. (2) No appeal lie against any award of a Claims tribunal if the amount in dispute in the appeal is less than ten thousand rupees. 6. From bare reading of the aforesaid provisions it is manifestly clear that proviso to Sub-section (1) of Section 173 makes it mandatory on the part of the appellant to deposit 25000/- rupees or 50% of the amount so awarded whichever is less along with the memo of appeal. No time has been fixed for deposit of aforementioned statutory amount for the reason that the said amount shall have to be deposited along with the memo of appeal. The aforesaid provision is very clear to say that the High Court shall not entertain the appeal unless the appellant deposits, with the memo of appeal, the aforementioned amount. 7. Notwithstanding the mandatory requirement of law, as noticed above, we have come across a number of cases, where invariably the memo of appeals against the judgment and award are presented without any receipt of deposit of the amount or without any bank draft. On the contrary, the memo of appeal is filed and the same is listed before the Lawazima Board for compliance of the mandatory requirement of law. 8. On the contrary, the memo of appeal is filed and the same is listed before the Lawazima Board for compliance of the mandatory requirement of law. 8. Rule 27 of the Rules quoted hereinabove also clarities that the statutory amount as provided in the proviso to Section 173 of the Act shall be deposited in the manner directed by this Court. 9. In the aforesaid premises and also in order to expedite the disposal of appeals arising out of judgment and award it is necessary to issue necessary directions in this regard. We, therefore, think it proper to issue directions in the matter of deposit of the statutory amount as contemplated under Section 173 of the Act and Rule 27 of the Rules, as under: (i) The memo of appeal challenging the judgment and award passed by the Motor Vehicles Claims Tribunal under Motor Vehicles Act, 1988 shall contain a bank draft of Rs. 25,000/ or half of the amount awarded whichever is less, so that the appeal could be entertained by the High Court. (ii) If such draft of the statutory amount is not attached with the memo of appeal, then a separate application shall be filed by the appellant for seeking leave of the court to deposit the said amount within the time that may be allowed by the court but in no case the appellant shall be allowed time more than 30 days for deposit of the statutory amount from the date when the memo of appeal is presented in court. (iii) if the memo of appeal will not contain the bank draft of the statutory amount or in absence of any leave of the court allowing time for deposit of the said amount, then it shall be deemed that no appeal has been filed or entertained by the High Court. 10. It is made clear that the aforesaid direction shall have perspective effect. So far the instant case is concerned, learned Counsel for the appellant is allowed two weeks time to remove the defect including deposit of statutory amount. 11. Let a copy of this order be immediately communicated to the Registry and the concerned Section of the appeal to strictly follow the aforesaid directions. A copy of this order be also handed over to Mr. G.C. Jha, learned Counsel for the appellant who, in turn, will communicate the Insurance Company. 11. Let a copy of this order be immediately communicated to the Registry and the concerned Section of the appeal to strictly follow the aforesaid directions. A copy of this order be also handed over to Mr. G.C. Jha, learned Counsel for the appellant who, in turn, will communicate the Insurance Company. The matter may also be placed before the Full Court for consideration whether these directions are necessary to be incorporated in the Jharkhand High Court Rules.