The New India Assurance Company Limited vs Anand Pal… — Motor Accident Claims | Allahabad HC (2025)

The New India Assurance Company Limited vs Anand Pal… — Motor Accident Claims | Allahabad HC (2025)

What the court decided

AI extract

Outcome

Appeal admitted and notice issued to respondents (service by ordinary and registered post within ten days; four weeks for counter affidavits); operation of the award dated 07.02.2025 of MACT Moradabad in M.A.C.P. No.413 of 2018 stayed until further orders, conditional on the appellant depositing the entire awarded amount with interest within two months; 50% of the deposit releasable to the claimant without security, balance 50% in a three-year renewable FDR; statutory deposit of Rs.25,000/- (proviso 173, Motor Vehicle Act) to be adjusted towards the deposit; stay to stand vacated automatically on default; matter listed on 28.08.2025 with service report.

Issue for consideration

Whether the operation of the impugned award should be stayed where, per the appellant, the F.I.R. names vehicle No.U.P.21-BN/2794 while the claim petition was instituted against vehicle No.U.P.21BN/8794, indicating false implication of the offending vehicle (appeal admitted; matter stated to require consideration).

Court's answer

Until further orders, the operation of the impugned award dated 07.02.2025 passed by the MACT, Moradabad in M.A.C.P. No.413 of 2018 shall remain stayed, provided the appellant deposits the entire awarded amount along with interest within two months.

Ratio / Principle

Out of the deposited amount, the Tribunal shall release 50% to the claimant/respondent without furnishing security, and the balance 50% shall be invested by the Tribunal in FDR for three years, to be renewed from time to time.

Key takeaways

The statutory deposit of Rs.25,000/- made in compliance of proviso 173 of the Motor Vehicle Act, if not remitted, shall be remitted to the concerned Tribunal for adjustment towards the amount to be deposited by the appellant.ratio¶10
In the event of default in deposit of the aforesaid amount, the interim order (stay) shall stand vacated automatically.ratio¶12

Detailed headnote1 paragraphs

Allahabad High Court (Saral Srivastava, J.), order dated 3.7.2025 in First Appeal From Order No. 1357 of 2025 (The New India Assurance Company Limited v. Anand Pal Singh and 2 others): appeal against the award dated 07.02.2025 of the Motor Accident Claims Tribunal, Moradabad in M.A.C.P. No. 413 of 2018 admitted on the insurer's contention of false implication of the offending vehicle — the F.I.R. naming vehicle No. U.P.21-BN/2794 while the claim petition was instituted against vehicle No. U.P.21BN/8794. Operation of the impugned award stayed until further orders, conditional on deposit of the entire awarded amount along with interest within two months; out of the deposit, 50% to be released to the claimant without security and the balance 50% placed in a three-year FDR renewable from time to time; the statutory deposit of Rs.25,000/- made in compliance of proviso 173 of the Motor Vehicle Act, if not remitted, to be credited towards the deposit; default entails automatic vacation of the interim stay. Notice to respondents by ordinary and registered post within ten days, counter affidavits within four weeks; matter listed on 28.08.2025 with service report.

Court No. - 2

Case :- FIRST APPEAL FROM ORDER No. - 1357 of 2025

Appellant :- The New India Assurance Company Limited Respondent :- Anand Pal Singh And 2 Others Counsel for Appellant :- Aijaz Ahmad Khan

Hon'ble Saral Srivastava,J.

Heard learned counsel for the appellant.

It is contended by the learned counsel for the appellant that it is a case of false implication of offending vehicle inasmuch as F.I.R. was lodged against vehicle No.U.P.21-BN/2794, whereas the claim petition has been instituted against the vehicle No.U.P.21BN/8794.

Matter requires consideration.

Admit.

Issue notice to the respondents.

Steps by both modes, i.e., by ordinary post as well as registered post be taken for service of notice upon respondents within ten days.

All the respondents are granted four weeks time to file counter affidavit.

Until further orders of this Court, the operation of the impugned award dated 07.02.2025 passed by the Presiding Officer/Motor Accident Claims Tribunal, Moradabad in M.A.C.P. No.413 of 2018 (Anand Pal Singh Vs. Dallu Singh and others)) shall remain stayed provided the appellant deposits the entire awarded amount along with interest within a period of two months from today.

Out of the amount, so deposited, the Tribunal shall release 50% in favour of claimant/respondent without furnishing security and balance of 50% of the amount shall be invested by the Tribunal in the FDR for a period of three years which shall be renewed from time to time.

It is further provided that statutory deposit of Rs.25,000/- made by the appellant in compliance of proviso 173 of the Motor Vehicle Act, if not remitted, shall be remitted to the concerned Tribunal for adjustment towards the amount to be deposited by the appellant.

List on 28.08.2025 with service report.

In the event of default in deposit of the aforesaid amount, the interim order granted above, shall stand vacated automatically.

Order Date :- 3.7.2025 NS

Digitally signed by :- NITIN KUMAR High Court of Judicature at Allahabad