Allowed

Shriram General Insurance Co. Ltd. v. Lala Ram & Ors.

Delhi HC2 Mar 2012MAC.APP./962/2011

Case brief

AI extract

What is this about?

The High Court allowed an appeal against an interim award of Rs. 4,40,000/- by the Motor Accident Claims Tribunal. It set aside the award as patently illegal under Order 12 Rule 6 CPC, directed payment of only Rs. 50,000/- under Section 140 of the Motor Vehicles Act, and awarded interest at 7.5% per annum.

What did the court decide?

Interim award of Rs. 4,40,000/- set aside; Rs. 50,000/- payable under Section 140 of Act with interest at 7.5% p.a.

Shriram General Insurance Co. Ltd. Vs Lala Ram & Ors. — Execution and Attachment | Delhi HC (2012)

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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Decided on: 2^nd March, 2012

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+ MAC.APP. 962/2011

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SHRIRAM GENERAL INSURANCE CO. LTD..... Appellants Through: Mr. Pankaj Seth, Advocate

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versus

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LALA RAM & ORS. ..... Respondents Through: Mr. J.P.N. Shahi, Adv. for R-1.

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CORAM: HON'BLE MR. JUSTICE G.P.MITTAL

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J U D G M E N T

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G. P. MITTAL, J. (ORAL)

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A Claim Petition under Section 166 of the Motor Vehicles Act (the Act) and Section 140 of the Act was preferred by the Respondents No.1 to 5 before the Motor Accident Claims Tribunal, (the Claims Tribunal) claiming compensation for the death of Smt. Sheela wife of the first Respondent and mother of Respondents No.2 to 5.

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A revised offer of ` 4,52,000/- was given by the Appellant Insurance Company which is available on page 15 of the Trial Court Record which was not accepted by the Respondents No.1 to 5.

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The Claims Tribunal without any basis proceeded to pass an interim award of ` 4,40,000/-. As per Section 140 of the Act an

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Page 1 of 2

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MAC APP 962/2011

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interim compensation of 50,000/- is liable to be awarded in favour of the legal representatives pending disposal of the Claim Petition under Section 166 of the Act. This order of the Claims Tribunal purported to be passed under Order 12 Rule 6 CPC was patently illegal. The same is accordingly set aside. On the other hand, the order shall be treated as under Section 140 of the Act and the amount payable shall be 50,000/- only which shall be paid to the first Respondent to be utilized for himself and for the benefits of Respondents No.2 to 5.

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The Claims Tribunal shall proceed to decide the Claim petition on merits after holding inquiry as provided under the Act.

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The award amount of ` 50,000/- shall carry interest @ 7.5% per annum from the date of filing the petition till the date of deposit with the Claims Tribunal within 30 days.

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Parties to appear before the Claims Tribunal on 26^th March, 2012.

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The Appeal is allowed in above terms.

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Copy of the order be sent to the Claims Tribunal.

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DASTI.

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(G.P. MITTAL) JUDGE

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MARCH 02, 2012 vk

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Page 2 of 2

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MAC APP 962/2011

Shriram General Insurance Co. Ltd. v. Lala Ram & Ors.

Case brief

What is this about?

What did the court decide?

Shriram General Insurance Co. Ltd. v. Lala Ram & Ors.

Case brief

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What did the court decide?

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