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2025 DIGILAW 188 (SC)

New india assurance co. Ltd. v. Krishna Sakharam Baing

2025-01-08

AHSANUDDIN AMANULLAH, PANKAJ MITHAL

body2025
ORDER : 1. Heard learned counsel for the parties. 2. Leave granted. 3. The sole issue which has been raised in these appeals is whether the Insurance Company who has been voluntarily impleaded by the claimants in the claim petition is entitled to raise all grounds to oppose the claim petition rather than confining to the grounds referred to under Section 149(2) of the Motor Vehicles Act, 1988[For short 'the Act']. 4. The High Court has dismissed the appeal of the Insurance Company only on the ground that it had not taken permission under Section 170 of the Act and, therefore, it is not open to it to contest the matter on merits. 5. The issue which has been raised herein appears to be fully covered by the 3-Judges' Bench decision of this Court in United India Insurance Company Limited vs. Shila Datta and Ors., (2011) 10 SCC 509 6. In paragraph 19 of the aforesaid citation, it has been clearly laid down that where the insurer is a party-respondent, either on account of being impleaded as a party by the Tribunal under Section 170 or being impleaded as a party-respondent by the claimants in the claim petition voluntarily, it will be entitled to contest the matter by raising all grounds available to it in law, without any limitation placed under Section 149(2) of the Act. 7. In the case at hand, admittedly, the claimants themselves have added the Insurance Company as a party respondent voluntarily entitling it to raise all grounds including those available under Section 149(2) of the Act. 8. In view of the aforesaid facts and circumstances, the High Court fell in error in non-suiting the appellant on the ground that since permission under Section 170 of the Act was not taken, the Insurance Company is not entitled to raise other grounds to resist the claim independent of grounds contained in Section 149(2) of the Act. 9. Accordingly, the impugned orders are not sustainable and are hereby set aside. The matters are remanded to the High Court for decision afresh of the appeals on merits by allowing the appellant to raise and argue all points available to it under the law including those covered under Section 149(2) of the Act. 10. 9. Accordingly, the impugned orders are not sustainable and are hereby set aside. The matters are remanded to the High Court for decision afresh of the appeals on merits by allowing the appellant to raise and argue all points available to it under the law including those covered under Section 149(2) of the Act. 10. The High Court will make full endeavor to decide the appeals on remand as expeditiously as possible preferably within a period of nine months from the date, a copy of the order is produced before it. 11. The appeals are allowed accordingly. Pending application(s), if any, shall stand disposed of.