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2017 DIGILAW 2151 (JHR)

National Insurance Company Ltd. v. Shubhda Sriniwas Rao

2017-12-13

AMITAV K.GUPTA

body2017
ORDER : Learned counsel for the appellant prays for and is permitted to carry out necessary correction in page nos. 3 & 6 of the memo of appeal, in course of day. 2. Learned counsel for the appellant is aggrieved from the judgment and award dated 5.10.2013, passed by the District Judge-II-cum-Motor Vehicles Accident Claims Tribunal, Jamshedpur, in Compensation Case No. 124 of 2008, whereby the appellant was directed to pay the compensation amount of Rs. 23,13,296/- with interest @ 6% payable, from the date of filing of the application, within two month failing which it has to pay interest @ 10% till realization or payment of the award. 3. Learned counsel, for the appellant/National Insurance Company Limited, has submitted that the court below has failed to appreciate that the owner of the vehicle did not appear and the appellant/insurance company had taken a specific plea that the truck bearing registration No. WB-41B-5885 was being plied without a valid permit. It is submitted that supplementary affidavit containing the reports of the surveyor and the letter of the transport authority of West Bengal, reveals that the aforesaid vehicle was being plied on a fake permit. That in such circumstances, the court below should have fastened the liability on the owner or given the right of recovery to the insurer-appellant. 4. Learned counsel for the respondents/claimants, has submitted that the question raised in the present appeal regarding validity of permit was also raised in the court below and an application under Section 170 of the Motor Vehicles Act was filed which was allowed, but the appellant/insurance company did not produce any documents in support of the said plea. That the appellant is stopped from raising such a plea at this stage. That till date respondents/claimants have not received any amount of the awarded compensation, save and except Rs. 50,000/- as an interim compensation. 5. Having heard learned counsel for the appellant/insurer on the limited question that the offending vehicle was being plied without the valid road permit which amounts to violation of the terms and conditions of policy by the owner, this Court is of the considered view that the documents of the West Bengal authorities filed at this stage to establish the violation of the statutory provision and permitting recovery of the compensation amount by the Insurer from the owner is not acceptable. The Insurer had sufficient opportunity to lead the evidence in the court below which it has failed to do so and granting such liberty will lead to prolonging the case. 6. On perusal of the impugned order it is evident that the learned lower court has referred to the decision of Hon'ble the Supreme Court in the case of Swam Singh (para-10 & 15 of the judgment) and recorded its findings that the appellant/insurer despite being provided with the opportunity failed to produce any chit of paper to establish that there was no valid road permit. The legality of this finding has been disputed by the appellant before this Court by producing the papers availed from the West Bengal Authority. At this stage such plea is not acceptable. 7. The appellant/National Insurance Company is directed to pay the awarded compensation amount, less the amount paid as interim compensation, to the respondents/ claimants with interest @ 7% in terms of the order of the court below by 30.3.2018 failing which awarded compensation shall carry an interest @ 9% payable by the appellant from the date of this order till realization. 8. With the aforesaid observation and direction, the impugned order is modified to the extent that the interest payable will be 7%. 9. Registry is directed to refund the statutory amount in favour of the appellant on proper identification. 10. In the result, the appeal stands dismissed.