LexNATIONAL INSURANCE COMPANY LTD. versus MEGHJI NARAN SORATIYA & ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
[2009) 3 S.C.R. 875
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NATIONAL INSURANCE COMPANY LTD.
A
v.
MEGHJI NARAN SORATIYA & ORS.
(Civil Appeal No. 1171 of 2002)
FEBRUARY 26, 2009
B
[R. V. RAVEENDRAN AND H.L. DATTU, JJ.]
Motor Vehicles Act, 1988:
ss. 149(2) and 170 - Permission granted by Tribunal to c
insurer to contest the claim - HELD: On facts, does not call
for interference - If the order granting permission required
reasons to be recorded, on challenge, High Court could either
set aside the permission granted with a direction to Tribunal
.,
to pass a reasoned order or itself consider whether the case
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warranted permission -
But under no circumstance
permission by Tribunal to contest the claim can be equatetl
to or treated as denial of permission merely on the ground
that reasons were not recorded - Judicial notice can also be
taken of false claims by claimants in collusion with owners/
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drivers of vehicle and/or police and/or doctors - In such
cases, it is the insurer which is to bear the liability statutorily
or contractually - Such matters invite serious consideration
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by Parliament and Law Commission to give the insurer direct
right to contest the claim on merits without technical
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requirement of permission - Legislation - Need for- Judicial
...
Notice.
Fatal accident - Compensation - Computation of - Age
of deceased assessed 55-58 years - Claim by son and
daughter-in-law - Tribunal deducting 113rd of salary towards
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personal expenditure, applying multiplier of 10 and allowing
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interest at 15% - HELD: Multiplier of 10 justified - But 50%
and not 1!3rd to be deducted towards personal and living
expenses of deceased - Interest at 9% would be appropriate.
875
H
876
SUPREME COURT REPORTS
[2009] 3 S.C.R.
A
Fatal accident - Compensation - Computation of -
Deceased bus conductor earning Rs.36001- per month at the
time of accident - Pursuing Master's course - Tribunal
assuming higher monthly income at Rs. 50001- after
completing studies - Keeping in view the age of dependent
B wife as 22 years and minor children aged three and one year
and the parents, Tribunal applying multiplier of 16 - Interest
allowed at 15% - HELD: In view of the higher qualification,
Tribunal justified in assuming higher income instead of actual
income - But, such assessment should be realistic and should
c be close to actual income - On facts, income taken as
Rs.40001- per month - Multiplier of 17 to be applied - One-
fourth to be deducted towards personal and living expenses
- Interest reduced to 9%.
General Manager, Kera/a State Road Transport Corpn.
D v. Susamma Thomas 1994 (2) SCC 176; U.P. State Road
Transport Corpn. v. Trilok Chandra 1996 (4) SCC 362 and
Sara/a Dixit v. Ba/want Yadav AIR 1996 SC 1274, referred
to.
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Case Law Reference:
1994 (2) sec 116
1996 (4) sec 362
AIR 1996 SC 1274
referred to
referred to
referred to
para 12
para 12
para 16
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
1171 of 2002.
From the Judgment & Order dated 28.12.1999 of the High
G Court of Gujarat at Ahmedabad in First Appeal No. 4994 of
1999.
Minakshi Vij for the Appellant.
The following Order of the Court was delivered :
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NATIONAL INSURANCE COMPANY LTD. v. MEGHJI
877
NARAN SORATIYA & ORS.
R.V. RA VEENDRAN, J. 1. The insurer has challenged the
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dismissal of its appeals (against the awards of Motor Accident
Claims Tribunal), by the Gujarat High Court on the sole ground
that the Tribunal while granting permission to the insurer to
contest the claim under Section 170 of the Motor Vehicles Act,
1988 ('Act' for short) did not assign reasons for granting
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permission.
2. Chapter XII of the Act relates to Claims Tribunals.
Chapter XI relates to insurance of motor vehicles against third
party risks. The scheme, in particular, the provisions of section
170 read with section 149, contemplate the claimants in a motor
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accident claim filing the claim petition against the driver and
owner of the motor vehicle. The claimants are required to
furnish the particulars relating to insurance and the name and
address of the insurer, but are not required to implead the
insurer as a party to the proceedings. Having regard to the
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statutory obligation imposed on the insurer to satisfy judgments
and awards against persons insured in respect of third party
risks, the tribunal is required to issue notice to the insurer about
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the initiation of the claim proceedings. When such notice isExcerpt shown. Read the full judgment & AI analysis in Lexace.