United India Insurance Co. Ltd. vs Stilian Phanrang And Ors. on 29 May, 1995

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Gauhati High Court
United India Insurance Co. Ltd. vs Stilian Phanrang And Ors. on 29 May, 1995
Equivalent citations: 1996 ACJ 227
Author: S Saraf
Bench: S Saraf

JUDGMENT

S.L. Saraf, J.

1. This order relates to matter Nos. 3 to 14 of the hearing list.

2. In all these matters, revision applications have been filed by the insurance company against an order whereby the Claims Tribunal has awarded to each individual an amount by way of compensation which is below Rs. 10,000/-. Section 173 of the Motor Vehicles Act, 1988, lays down that “no appeal shall lie against any award of a Claims Tribunal, if the amount in dispute in the appeal is less than Rs. 10,000/-.” The insurance company, finding the bar of Sub-section 2 of Section 173 whereby it could not have filed any appeal against the orders where the claim was only to the extent of less than Rs. 10,000/-, it has resorted to file this revision application under Section 115 of the Civil Procedure Code read with Article 227 of the Constitution of India.

3. This, according to me, is a colourable exercise of power and is an abuse to the letter and spirit of legislative intent. It smacks of mala fide on the part of the Government undertaking which, instead of furthering the legislative intent, is trying to overreach the said provisions. What the insurance company cannot do directly under Section 173(2), it should not attempt to do the same by circuitous manner, under the garb of a revision application. The provision of Section 173(2) is to prevent the insurance company from multiplying proceedings in matters which are uneconomic from the point of view of the insurance company as well as public exchequer. The provisions have been made by the legislature in order to protect the small awardees of compensation in cases where the awardees cannot fight the insurance company before the High Court or other courts and by this provision, the legislature has seen to it that for a small amount of compensation given to the awardee, the insurance company need not drag those awardees before the High Courts. The idea is that the people of small means should not be dragged on to huge litigation expenses by monolithic Moghuls like insurance company. In my view, the insurance company by resorting to Section 115 of the Civil Procedure Code read with Article 227 of the Constitution of India has sought to achieve the same result which it has been specifically barred under the provisions of Section 173(2) and has really acted mala fide and against the spirit of the said provisions. The said provision of Section 173(2) is in the nature of welfare legislation and the insurance company should graciously accept the same instead of prolonging the litigation. The insurance company should not have harassed the awardees of little substance who can ill afford to fight by raising questions of fact and law, however vitally important they may be. In view of the fact that the insurance company has harassed all those 14 claimants directing them to come before the High Court knowingly, though it has been specifically barred by an Act of Parliament. I direct the insurance company to pay Rs. 2,000/- to each one of them on account of costs of these applications. The insurance company is directed to pay the amount of compensation allowed by the Claims Tribunal and the costs awarded by this Hon’ble court within a period of a fortnight from today and if the same is not paid, it will carry an interest at the rate of 24 per cent per annum from today till payment is made.

4. The matter Nos. 3 to 14 are disposed of accordingly.

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