LexNATIONAL INSURANCE COMPANY LTD. versus MASTAN AND ANR.
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A NATIONAL INSURANCE COMPANY LTD. v. MAST AN AND ANR. DECEMBER 9, 2005 B [S.B. SINHA AND P.K. BALASUBRAMANY AN, JJ.] Labour Laws: Workmen's Compensation Act, 1923-Sections 3, 4, 5, 15B and 30- C Motor Vehicles Act, 1988-Sections 143, 149, 167 and 173-First Respondent was driving his employer's vehicle when it met with accident~He suffered 45% to 50% disability-Vehicle insured with Appellant-First Respondent initiated proceedings under the 192 3 Act and obtained award of compensation payable by Appellant-Defences available to Appellant-insurer in appeal initiated by it under the 1923 Act-Whether restrictions on defences available D to an insurer in terms of S.149(2) of the 1988 Act applicable-Held, No-- First Respondent having chosen the forum under the 1923 Act/or obtaining compensation against his employer debarred from invoking the provisions of the 1988 Act-Applicability of doctrine of estoppel by election. Interpretation of Statutes-Reference by incorporation-Applicability E of F Doctrines-Doctrine of estoppel by election-When two remedies are avmlable for the same relief. the aggrieved party has the option to elect either of them but not both-However there are certain exceptions to the same rule. First Respondent was driving his employer's vehicle when it met with an accident. He suffered 45% to 50% disability. The vehicle was insured with the Appellant. First Respondent initiated proceedings under the Workmen's Compensation Act, 1923 and obtained an award of compensation payable by Appellant Against the award, Appellant filed appeal under Section G 30(1) of the 1923 Act which was dismissed by High Court on the premise that the Appellant was not entitled to urge any ground therein which was available to it in terms of the Motor Vehicles Act, 1988. In appeal to this Court the question which arose for consideration is whether an insurer, while defending an action initiated under the Workmen's II 704 ' • ' - ,I ..... NA TIONALINSURANCECOMPANY LTD. v. MAST AN 705 Compensation Act, 1923, is precluded from raising any defence as envisaged A under sub-section (2) of Section 149 of the Motor Vehicles Act, 1988. Allowing the appeal and remitting back the matter to High Court, the Court HELD: Per S.B. Sinha, J. 1.1. Right of appeal is a creature of statute. The scope and ambit of an appeal in terms of Section 30 of the 1923 Act and Section 173 of the 1988 B Act are distinct and different. They.arise under different situations. In a case falling under the 1923 Act, negligence on the part of the owner may not be required to be proved. What is required to be proved is that the workman C suffered injuries or died in course of employment. The amount of compensation would be determined having regard to the nature of injuries suffered by the worker and other factors as specified in the Act. The findings of fact arrived at by the Commissioner for Workmen's Compensation are final and binding. Subject to the limitations contained in Section 30 of the 1923 Act, an appeal would be maintainable before the High Court; but to put the insurer to further D disadvantages would lead to an incongruous situation. (712-G-H; 713-A-BJ 1.2. An insurer, subject to the terms and conditions of contract of insurance, is bound to indemnify the insured under the 1923 Act as also the 1988 Act. But, keeping in view the nature and purport of the two statutes, the defences which can be raised by the insurer being different, the scope and E ambit of appeal are also different. [713-C) National Insurance Company Ltd v. Nico/letta Rohtagi and Ors., (2002) 7 SCC 456; United India Insurance Co. Ltd. v. Bhushan Sachdeva & Ors., [2002) 2 SCC 265 and National Insurance Company Ltd v. Baljit Kaur, (2004) 2 sec 1, referred to. . F 2.1. Under the 1988 Act, the driver of the vehicle is liable but he would not be liable in a case arising under the 1923 Act. If the driver of the vehicle has no licence, the insurer would not be liable to indemnify the insured. In a given situation, the Accident Claims Tribunal, having regard to its rights and liabilities vis-a-vis the third person may direct the insurance company to meet G the liabilities of the insurer, permitting it to recover the same from the insured. The 1923 Act does not envisage such a situation. (713-D) 2.2. Role of reference by incorporation has limited application. A limited right to defend a claim petition arising under one statute ca
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