Allowed

M/S United India Insurance Co. Ltd. v. Sri Ratan Deka and 2 Ors.

Gauhati HC6 Jun 2022MACApp./231/2019

Case brief

AI extract

What is this about?

Appeal against an award directing an insurance company to pay compensation for a motor accident arising due to an invalid driving license. The court affirmed liability to pay but permitted the insurer to seek recovery from the vehicle owner under the cited Supreme Court principle.

What did the court decide?

Appellant to deposit remaining 50% compensation with interest within six weeks; liberty granted to recover from vehicle owner thereafter.

M/S United India Insurance Co. Ltd. Vs Sri Ratan Deka… — Motor Accident Claims | Gauhati HC (2022)

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Page No.# 1/4

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GAHC010008412017

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THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

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Case No. : MACApp./231/2019

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M/S UNITED INDIA INSURANCE CO. LTD.

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HAVING ITS REGISTERED OFFICE AT 24 WHITES ROAD, CHENNAI 600014 WITH ONE OF ITS REGIONAL OFFICE AT G.S. ROAD, CHRISTIANBASTI, GUWAHATI 781005 REPRESENTED BY ITS CHIEF REGIONAL MANAGER

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VERSUS

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SRI RATAN DEKA and 2 ORS

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S/O LATE SUBHARAM DEKA, SARTHEBARI (DABAR SOAP), P.S. SARTHEBARI, P.O. SARTHEBARI-781307, DIST. BARPETA, ASSAM.

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2:MRS. HAMIDA KHATUN

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W/O MR. SIRAJUDDIN AHMED R/O BIRUBARI P.S. PALTANBAZAR P.O. PALTANBAZAR GUWAHATI 781008 DIST. KAMRUP M ASSAM.

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3:HARE KRISHNA RAJBONGSHI S/O SRI NABIN RAJBONGSHI R/O BANGRABARI P.O. BARAMA 781346 DIST. NALBARI ASSAM

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Advocate for the Petitioner : MR. A AHMED, Mr. R. C. Paul

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Advocate for the Respondent : Ms. A G CHOUDHURY

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Page No.# 2/4

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BEFORE HONOURABLE MR. JUSTICE NANI TAGIA

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ORDER

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Date : 06-06-2022

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Heard Mr. R. C. Paul, learned counsel for the appellant and Ms. A. G. Choudhury, learned counsel for the respondent no. 1/claimant.

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Respondent nos. 2 & 3 have also been duly served as indicated in the order dated 08.04.2022.

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This appeal filed under Section 173 of the Motor Vehicle Act, 1988, is directed against the judgment and award dated 17.06.2017, passed by the learned Additional District Judge No. 3, Kamrup (M) Guwahati, in MAC Case No. 1664 of 2012, directing the appellant Insurance Company to pay a compensation amount of Rs. 2,76,406/-, which is inclusive of no fault liability along with interest @ 6% per annum from the date of filing of the claim petition i.e. 10.09.2012, till payment.

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The only contention raised by Mr. Paul, learned counsel for the appellant is that since there was a violation of the policy of insurance pertaining to the validity of the driving license of the driver, the learned Tribunal while passing the impugned award, fastening the liability to pay the compensation on the appellant insurance company has failed to provide the Insurance Company liberty to pay and recover from the owner of the vehicles as held in the case of National Insurance Company Limited vs. Swaran Singh & Ors.,

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Page No.# 3/4

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reported in 2004 3 SCC 297.

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The learned counsel for the appellant/Insurance Company, Mr. Paul, therefore, submits that the appellant would like to pay the entire awarded amount in terms of the impugned award passed by the learned Tribunal to the respondent no. 1/claimant and recover the said amount from the respondent no. 2, the owner of the vehicle, for violation of the Insurance policy as regards the driving license of the deriver as per the principle of law laid down by the Hon’ble Supreme Court in the decision cited above, namely, National Insurance Company Limited vs. Swaran Singh & Ors. (supra).

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Mr. Paul further submits that 50% of the awarded amount has already been deposited by the appellant Insurance Company before the Registry by this Court in terms of order dated 26.04.2019, passed in IA(C)No. 1377/2019, which amount has also been withdrawn by the respondent no. 1/claimant. The aforesaid withdrawal of the amount by the respondent no. 1/claimant, have not been disputed by Ms. A. G. Choudhury, learned counsel representing the respondent no. 1.

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In view of the above, the appellant Insurance Company shall deposit the remaining 50% amount, along with the interest awarded in terms of the judgment and award dated 17.06.2017, passed by the learned Additional District Judge No. 3, Kamrup (M) Guwahati, in MAC Case No. 1664 of 2012, before the Registry of this Court within 6 (six) weeks from today. On depositing of the aforesaid rest of the amount along with the interest as indicated hereinabove, the respondent no. 1/claimant shall be at liberty to withdraw the

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deposited amount on being properly identified by the engaged counsel and by following the due process of identification as notified by the Registry of this Court, from time to time.

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Appellant shall be at liberty to file an appropriate application before the learned Tribunal for recovery of the compensation amount paid to the respondent no. 1/claimant, herein, from the respondent no. 2/owner of the vehicle, as may be permissible under the law.

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The instant appeal stands disposed of, in terms above.

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Since the appeal has been disposed of, the statutory amount of Rs. 25,000/- deposited by the appellant/Insurance Company shall be refunded to the appellant/Insurance Company by the Registry.

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JUDGE

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Comparing Assistant

M/S United India Insurance Co. Ltd. v. Sri Ratan Deka and 2 Ors.

Case brief

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M/S United India Insurance Co. Ltd. v. Sri Ratan Deka and 2 Ors.

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