Allowed

New India Assurance Co. Ltd. v. Prasanna Dhirendra Yelnoorkar and Ors.

Bombay HC20 Jan 2014FA/12/2012

Case brief

AI extract

What is this about?

The High Court allowed an appeal by an insurance company challenging an award of Rs.2,65,000 compensation under Section 163-A of the Motor Vehicles Act, holding that the Act does not apply where the deceased owner was personally at fault in the accident.

What did the court decide?

Impugned order set aside; statutory amount and compensation deposited by Appellant reimbursed with accrued interest from 12/03/2014.

New India Assurance Co. Ltd. Vs Prasanna Dhirendra Yelnoorkar and… — Insurance | Bombay HC (2014)

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FA NO.12 OF 2012

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IN THE HIGH COURT OF JUDICATURE OF BOMBAY
BENCH AT AURANGABAD

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FIRST APPEAL NO.12 OF 2012

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New India Assurance Co.Ltd.
Through its Div. Manager,
Lahoti Complex, Nanded, Dist.Nanded.
throughitsauthorisedsignatory,
Sr.Div.Manager,
Legal Hub, Aurangabad Div. Aurangabad.

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...APPELLANT
Orig.Respondent

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VERSUS

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1. Prasanna s/o Dhirendra Yelnoorkar, Age 28 yrs., Occ. Student.

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2. Prachi d/o Dhirendra Yelnoorkar, Age 25 yrs. Occ. student.

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3. Shradha wd/o Dhirendra Yelnoorkar, Age 56 yrs. Occ. Household r/o. Patnoorkar Nagar, Nanded, Dist. Nanded.

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...RESPONDENTS
Orig.Claimants

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...

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Mr. Dhananjay P.Deshpande, Advocate for the
appellant.

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...

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CORAM: K.U.CHANDIWAL, J.
Date:January 22nd, 2014

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...

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1. Heard Mr. Deshpande for the appellant.

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2.Notices were issued on 12th Jan., 2012,
informing that the appeal could be decided finally

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2 FA NO.12 OF 2012

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at the stage of admission. There was no response
to the notices. Consequently, Civil Application
was moved for paper publication which was allowed
on 26.2.2012. Inspite of such publication of
notice, no participation from respondents.

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3.Heard. Considering issue involved and
since record is available, the appeal is heard
finally in absence of respondents (original
claimants).

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4.The appellant Insurance Company questions
award dated 18.10.2011 recorded by the learned Ad
hoc District Judge and Ex Officio Member, Motor
Accident Claims Tribunal, Nanded, in MACP No.
523/2001 thereby awarding an amount of Rs.
2,65,000/- with interest at the rate of 6.5 per
cent per annum from the date of registration of
the application till payment.

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5.Deceased Dhirendra was proceeding towards
Kalambar (Bk.) on his motor cycle on 30th March,
2001. However, in order to avoid offending
obstacle, he took his motor cycle to extreme side
of the road and, resultantly fell, suffered
grievous hurt and, subsequently, succumbed. His
legal representatives have preferred application
under Section 163-A of Motor Vehicles Act for
grant of compensation of Rs.5,00,000/- ( Rs. five
lacs).

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3 FA NO.12 OF 2012

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6.From the available record, it is not in
question about death of the deceased, the spot
panchnama at Exh.27, the inquest at Exh.28, the
insurance policy at Exh.32. The learned Judge
considered income of the deceased, dependency and
directed afore referred compensation. The
grievance of the appellant insurance Company is:

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(a)Section 163-A of Motor Vehicles Act
cannot be allowed to be put in acceleration by
legal representatives of owner of vehicle when
owner was involved in the accident.

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(b)The insurance policy was applicable to
third party and not to the owner of the vehicle.

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Without further pondering upon the facts and
adverting to its discussion, it is necessar to
refer to the legal position to which Mr. Deshpande
gave reference which is crystallized by the Apex
Court in the matter of Oriental Insurance Co.Ltd
V. Rajni Devi and others ( (2008) 5 SSC 736). In
the said case, the Apex Court has dealt with
effect and impetus of Section 163-A, which are
special provisions, as to payment of compensation
on structured formula basis and the regular
objections under Section 166 M.V.Act. The Apex
Court also referred to earlier judgments reported
in AIR 2007 SC 1054 ( Oriental Insurance Co.Ltd.
vs. Smt. Jhuma Saha and others) and (2004) 8 SCC
553 ( Dhanraj V. New India Assurance Co.Ltd. The

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4 FA NO.12 OF 2012

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sum and substance of all these three judgments is,
an insurance policy covers the liability incurred
by the insured in respect of death of or bodily
injury to any person (including an owner of the
goods or his authorized representative) carried in
the vehicle or damage to any property of a third
party carried in the vehicle. However, effect of
Section 147 of Motor Vehicles Act does not provide
a leverage of insurance to owner of the vehicle in
case of his death or bodily injury.

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7.The deceased was, allegedly, drawing
salary of Rs.18,000/- a month while serving in
Zilla Parishad as a Medical Officer. The learned
Judge has reduced the annual income to the ceiling
of Rs.40,000/- to bring the case in terms of
Section 163-A which is not permissible under the
Scheme. It is well recognized, the Motor Vehicles
Act is a beneficial legislation and deserves
liberal construction with a view to implement the
legislative intent. However, it should not be
twisted in such a manner to squeeze the
provisions. The Scheme under Section 163-A of
Motor Vehicles Act has special effect and requires
to consider the legislative intention.

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In the light of this position, the proceedings
under Section 163-A being a social security
provision, providing for distinct scheme, only
those whose annual income is upto a ceiling of Rs.
40,000/- would be permissible to take benefit

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5 FA NO.12 OF 2012

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thereof. However, other claims will have to be
dealt with in terms of Section 166 of Motor
Vehicles Act. ( 2004 (5) SCC 385 - Deepal
Girishbhai Soni vs. United India Insurance
Co.Ltd.).

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8.Conspectus of above facts illustrate, the
learned Member, Inspite of having pointed the
legal position, did not consider the same and,
hence, the order impugned calls for interference.
It is accordingly set aside. The statutory
amount and the compensation deposited by the
Insurance Company in this Court be reimbursed with
accrued interest to it after 12th March, 2014.

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Appeal allowed, no costs.

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( K.U.CHANDIWAL ) JUDGE

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agp/

New India Assurance Co. Ltd. v. Prasanna Dhirendra Yelnoorkar and Ors.

Case brief

What is this about?

What did the court decide?

New India Assurance Co. Ltd. v. Prasanna Dhirendra Yelnoorkar and Ors.

Case brief

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What did the court decide?

What the court decided

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