National Insurance Co. Limited vs Jagannath Prasad And Ors. on 15 February, 1996

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Madhya Pradesh High Court
National Insurance Co. Limited vs Jagannath Prasad And Ors. on 15 February, 1996
Equivalent citations: 2 (1996) ACC 157
Author: T Doalia
Bench: T Doabia


JUDGMENT

T.S. Doalia, J.

1. An interim award was passed. The present petitioner that is, National Insurance Company Limited, was asked to deposit a sum of Rs. 11,350/- (i.e. Rs. 7500 + Interest Rs. 3850/-) towards no fault liability. According to the petitioner, final award has since been given by the Tribunal on 29th July, 1994. Relying upon a decision given by this Court reported as National Insurance Co., Jabalpur v. Thaglu Singh and Ors. AIR 1994 MP 177, it has been argued that when owners have been directed to meet the liability for an accident then a further direction should also be given directing them to refund the amount paid by Insurance Company towards no fault liability to the Insurance Company. Reliance is being placed on the following observations made by this Court.

In these cases, there is no contention that the vehicles involved in the accidents are not covered by policies. There is also no dispute that the vehicles were involved in accident and death followed as consequence of the accidents. The Tribunal was, therefore, justified in directing the Insurance Companies to pay compensation on the basis of non-fault liability. If ultimate in passing the final award, it is found that the Insurer has no liability with regard to persons who sustained injuries, fatal or otherwise, the Tribunal may issue appropriate directions for re-imbursement of the amount from the owner(s) of the vehicle(s).

2. Accordingly, the matter is remanded to the Motor Accident Claims Tribunal who would pass appropriate orders in terms of the decision referred to above. It is made clear that this remand is only for this limited purpose only. This would of course, would be decided after affording opportunity of hearing to the parties concerned. This petition is disposed of accordingly.

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