The Oriental Insurance Company Ltd., v. T. Chamanchiamma

HON'BLE SRI JUSTICE S.V. BHATT M.A.C.M.A. No.924 OF 2005 JUDGMENT:

Heard Sri G.Subhash, learned counsel for the appellant and Sri S.V.Muni Reddy, learned counsel for the respondents.

The C.M.A. is directed against the order in I.A. No.553 of 2004 in M.V.O.P. No.146 of 2004 dated 28.12.2004. Through the order impugned in the appeal, the Tribunal awarded interim compensation of Rs.50,000/- in favour of 1st petitioner and against respondents 1 and 2 therein. The appellant-insurance company challenges the Award of interim compensation on various grounds including the ground that Jeep bearing No.ANC 2147 has an 'Act policy' and according to the terms and conditions of the 'Act policy', no liability can be fastened on the insurance company for the loss suffered by the inmates of vehicle. Sri S.V.Muni Reddy, learned counsel for the respondents-claimants places strong reliance upon Section 140 of the Motor Vehicles Act, 1988 and tries to persuade this Court that with the issuance of policy in favour of Jeep bearing No.

ANC 2147, the liability is simultaneous with that of the owner and Award of interim compensation is justified and he submits that no exception can be taken to the order impugned in the appeal. Learned counsel for the appellant by way of reply submits that liability or obligation to pay compensation cannot be assumed unless and until the terms of the policy are considered by the Tribunal and if the terms and conditions provide comprehensive coverage of travelled in the vehicle, then only interim compensation can be awarded, but not otherwise.

I have taken note of the submissions of learned counsel appearing for the parties and perused the material available on record.

The interim compensation was granted in I.A. No.553 of 2004 dated 28.12.2004. This Court through its order dated 28.04.2005 granted interim stay of depositing the amount as directed in I.A. No.553 of 2004. The interim order granted on 28.04.2005 subsists as on date. Having taken note of the controversy between the appellant and the respondents, I am satisfied that the MACMA can be disposed of by this order. The Chairman, Motor Accidents Claims Tribunal -cum- I Additional District Judge, Chittoor, is directed to dispose of M.V.O.P. No.146 of 2004 without fail within a period of eight weeks from the date of receipt of a copy of this order. The interim stay granted by this Court on 28.04.2005 is directed to be maintained pending disposal of the MVOP.

While passing the instant order, it is made clear that this Court is not expressing any view on the rival contentions of the parties. Further having noticed that a fact in issue on the conditions of policy, extent of application etc., is required to be decided before any liability is fastened on the insurance company, the instant order is passed. The MACMA is ordered accordingly. No costs.

Miscellaneous petitions, if any, pending in the MACMA shall stand closed. ___________ S.V.BHATT, J Date: 03.12.2015 Stp