Sidhique, S/o. Kunharumutty v. National Insurance Co. Ltd.
2017-02-07
P.B.SURESH KUMAR
body2017
DigiLaw.ai
JUDGMENT : P.B. Suresh Kumar, J. The petitioner herein is the petitioner in an application for compensation before the Motor Accidents Claims Tribunal, Tirur. A sum of Rs.1,00,000/- was claimed by the petitioner by way of compensation in the said application. In the course of the proceedings, the petitioner preferred an application for amendment of the application so as to raise the claim of compensation to Rs.9,00,000/-. The said application was allowed by the Tribunal as per Ext.P2 order on condition that the petitioner shall pay to the third respondent in the said application, a sum of Rs.5,000/- by way of costs. Ext.P2 order, in so far as it directs the petitioner to pay a sum of Rs.5,000/- to the third respondent by way of costs, is under challenge in this writ petition. 2. Heard the learned counsel for the petitioner as also the learned Standing Counsel for the respondent. 3. The costs directed to be paid as per the order impugned, no doubt, is compensatory in nature. Section 172 of the Motor Vehicles Act ('the Act') deals with the award of compensatory costs. Sub sections (1) and (2) of Section 172, which are relevant in the context, read thus: (1) Any Claims Tribunal adjudicating upon any claim for compensation under this Act, may in any case where it is satisfied for reasons to be recorded by it in writing that- (a) the policy of insurance is void on the ground that it was obtained by representation of fact which was false in any material particular, or (b) any party or insurer has put forward a false or vexatious claim or defence, such Tribunal may make an order for the payment, by the party who is guilty of misrepresentation or by whom such claim or defence has been put forward of special costs by way of compensation to the insurer or, as the case may be, to the party against whom such claim or defence has been put forward. (2) No Claims Tribunal shall pass an order for special costs under sub-section (1) for any amount exceeding one thousand rupees. The said section empowers the Tribunal to award compensatory costs only in the circumstances mentioned therein. A case of this nature is not covered by Section 172 of the Act.
(2) No Claims Tribunal shall pass an order for special costs under sub-section (1) for any amount exceeding one thousand rupees. The said section empowers the Tribunal to award compensatory costs only in the circumstances mentioned therein. A case of this nature is not covered by Section 172 of the Act. In the light of the direct provision contained in Section 172 of the Act as aforesaid, the impugned order, to the extent it directs payment of costs, is liable to be interfered with. Further, the application for compensation in the instant case, is one preferred by a victim of a motor accident. Sub section (4) of Section 166 of the Act indicates that the scheme of the Act is such that the compensation payable to the victims of motor accidents shall be extended to them even without an application. If the statute does not expect the victims of motor accidents to prefer applications for compensation, the award of costs for granting leave to amend an application for compensation already filed to claim enhancement, would go against the statutory intendment. The impugned order is bad on that ground as well. The writ petition, in the circumstances, is allowed and the impugned order, to the extent it directs the petitioner to pay costs, is set aside.