Allahabad High Court High Court

New India Assurance Co. Ltd. vs Smt. Sheela Devi And Ors. on 8 August, 2007

Allahabad High Court
New India Assurance Co. Ltd. vs Smt. Sheela Devi And Ors. on 8 August, 2007
Equivalent citations: 2008 (1) AWC 200
Author: A Lala
Bench: A Lala, S Kumar


ORDER

Amitava Lala, J.

1. The appeal was placed for disposal in the final list. Learned Counsel appearing for the appellant insurance company contended before this Court that its liability is limited as per Section 147 of the Motor Vehicles Act, 1988. He relied upon the judgment in National Insurance Company Limited v. Prembai Patel and Ors. JT 2005 (4) SC 399 : 2005 (3) AWC 2126 (SC). By relying upon this judgment he contended that when the liability of the insurance company is limited as per Section 147 of the Act having an effect of Workmen’s Compensation Act, it is not liable to pay the entire amount of compensation.

2. We have carefully gone through the judgment and find that the same point was agitated in the appropriate court on the basis of the insurance policy when the Court found that liability is limited on the basis of the insurance policy and order was passed in favour of the insurance company. In the present case, no application under Section 170 of the Act was made by the petitioner to proceed with the case independently apart from the existence of the owner.

3. The learned Counsel appearing for the claimant-respondents contended before this Court that as per Section 147 of the Motor Vehicles Act, 1988, either they can proceed before the Motor Accident Claims Tribunal or the Commissioner under the Workmen’s Compensation Act, 1923. When they have proceeded before the Motor Accident Claims Tribunal and the award has been passed without any objection, now at this appellate stage, the appellant insurance company cannot turn around and say that liability of the insurance company is limited as per the Workmens Compensation Act.

4. We are of view that the submission of the claimant-respondents is appropriate. Since no application is made for the purpose of determination of any independent right of the insurance company being agent of the owner, now such defence cannot be taken, otherwise the entire process of determination will become futile.

5. Hence the appeal stands dismissed. Interim order in connection with any application connected with appeal stands vacated.

No order is passed as to costs.

6. Incidentally the appellant insurance company prayed that the statutory deposit of Rs. 25,000 made before this Court for preferring this appeal shall be remitted back to the concerned Motor Accidents Claims Tribunal as expeditiously as possible in order to adjust with the amount of compensation to be paid to the claimant, however, such prayer is allowed.

Shishir Kumar, J.

7. I agree.