New India Assurance Co. Ltd. . Surat v. Kamarali Husenmiya Saiyed
2006-12-18
AKIL KURESHI, M.S.SHAH
body2006
DigiLaw.ai
JUDGMENT : M. S. Shah, J. 1. The appellant-Insurance Company had preferred First Appeal No. 3736 of 2005 which came to bed missed by order dated 20 12 2005. While dismissing the appeal, the Court directed the Registry to transmit the amount of Rs. 25,000/- deposited by the appellant with the Registry of this Court under Section 173(1) of the Motor Vehicles Act. 1988 at the time of filing the said appeal before this Court. In spite of the said direction, on account of lack of co-ordination between the two Departments in the Registry, the amount of Rs. 25,000/- was not transmitted for as long as eight months. However, in the course of execution proceedings, the tribunal required the Insurance Company to deposit the said amount along with further interest of Rs. 7117.50 ps. for the delay in payment of Rs. 25,000/- to the claimants. The appellant Insurance Company, therefore, preferred the present Misc. Civil Application for appropriate directions. We have given certain directions and also made certain observations. It has also been brought to our notice that some times while disposing of the stay application or at the time of summary dismissal of the First Appeal, the direction for transmitting the amount deposited under the first proviso to Section 173(1) is not sought and, therefore, the amount remains idle with the Registry of this Court for a number of years until one of the parties realizes such road vertent mistakes. 2. The office has, therefore placed this report dated 27-12-2006 seeking appropriate directions. clarifications regarding the statutory provisions of Section 173(1) of the Motor Vehicles Act, 1988 requiring the appellant to deposit Rs. 25,000/- or 50% of the amount awarded by the Tribunal, which ever is less. as to the forum before which such deposit may be made. 3. Section 173(1) reads as under :- "173. Appeals.- (1) Subject to the provisions of sub-section (2), any person wag grieved 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 per cent of the amount so awarded, whichever is less.
In the manner directed by the High Court: Provided further that the High Court in any entertain the appeal after the expiry of the said period of ninety days, if it is satisfied said that the appellant wag prevented by sufficient cause from preferring the appeal in time". It is obvious that the amount of Rs. 25,000/- or the lesser amount, as the case may be, is to be treated as a part of the compensation amount awarded by the Tribunal. 4. The clarification sought by the Registry is whether the amount required to be deposited by the appellant has to be deposited with the Registry of the High Court or whether such amount may be permitted to be deposited with the office of the Tribunal which had made the award challenged in the First Appeal before this Court. The reason for seeking such clarification is that even when the amount is deposited wish Registry of this Court, while passing orders on the stay application or at the time of summary dismissal of the appeal, this Court directs the Registry to transmit the amount to the concerned Tribunal. Even at the time of granting conditional stay, this Court re quires the appellant to deposit the compensation amount awarded by the Tribunal along with proportionate costs and interest ordinarily with the concerned Tribunal which had made the award and the said Tribunal is also required to make investment/disbursement of said compensation amounts with costs and interest including the amount of Rs. 25,000/- deposited under Section 173 (1). Hence ultimately it is the Tribunal which has to deal with the amount of Rs. 25,000/- (or 50% of the amount awarded by the Tribunal, whichever is less as the case may be being deposited by the appellant at the time of filing the appeal. 5. This process of first depositing the amount with the Registry of this Court and then the Registry awaiting the orders of this court for transmission and then the Registry transmitting the said amount to the office of the Tribunal results into wastage of unnecessary and avoidable time and energy of the staff of the Registry of this Court and also of the office of the Tribunal. For the claimant also this process results into delay in receiving the amount and loss of interest on this amount for several months. 6.
For the claimant also this process results into delay in receiving the amount and loss of interest on this amount for several months. 6. It would, therefore, be to the advantage and convenience of all concerned if the amount required to be deposited under the first proviso to sub-section (1) of Section 173 is deposited by the appellant straightway with the Tribunal rather than adopting the circuitous procedure of the appellant being required to deposit the amount with the Registry of this Court, the Registry being required to accept the deposit, to en cash it, retain the money awaiting further directions of this Court on the judicial side and thereafter transmitting it to the Tribunal. 7. One may suggest that the words, "no appeal ..... shall be entertained by the High Court unless he (the appellant) has deposited with it twenty five thousand rupees or fifty per cent of the amount so awarded, whichever is less" may prima-facie indicate that the amount is required to be deposited with the High Court. but the quoted word are followed by the following words : " .... in the manner directed by the High Court In view of the above discretion given to the High Court, it is open to this Court to permit the appellant to deposit the requisite amount under the above proviso with the office of the Tribunal and to require the appellant to produce the original receipt issued by the Tribunal office before the Registry of this Court. Once the requisite amount is deposited with the Motor Accident Claims Tribunal which is under the administrative as well as judicial control of this Court, the deposit can certainly be treated as deposit made with this Court in the manner directed by this Court. In our view, this would be sufficient compliance with the statutory requirement of the appellant depositing the requisite amount with this Court in the manner directed by this Court. Ultimately, the legislative object for such statutory pre-deposit is to see that such amount deposited by the appellant can be permitted to be withdrawn by the respondent claimant or such amount may be invested in a safe investment and the interest periodically accruing thereon may be permitted to be withdrawn by the respondent claimant when pursuant to such general permission granted by this Court the amount is required to be deposited under the above statutory requirement.
This object will certainly be achieved much faster by requiring the deposit to be made with the Tribunal. 8. In view of the above discussion, we are of the view that it would be well within the powers of the Registry to obtain the orders of the Hon'ble the Chief Justice for issuing a Circular :- (a) permitting the Motor Accident Claims Tribunals in the State of Gujarat to accept the amounts being deposited by the parties preferring appeals before the High Court under the first proviso to sub-section (1) of Section 173 of the Motor Vehicles Act. 1988, and also. (b) permitting the High Court Aegistry to accept the original receipts issued by the office of the Tribunal acknowledging receipt of such amounts from the concerned appellants and to treat them as deposit of the requisite amount/s with the High Court for the purpose of the appeal/s filed by such parties before the High Court under Section 173(1) of the Motor Vehicles Act, 1988. 9. The office report accordingly stands disposed of in terms of the above clarifications observations and directions. Order accordingly.