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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • S. 110D of the Motor Vehicles Act, 1939 (for short the Act)
  • Section 110-B read with Rules 6
  • Rule 5 of the Kerala Rules.
  • Indian Income-tax Act, 1922
  • Rule 5 of the Rules,
  • Sub-rule (1)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • S. 110D of the Motor Vehicles Act, 1939 (for short the Act)
  • Section 110-B read with Rules 6
  • Rule 5 of the Kerala Rules.
  • Indian Income-tax Act, 1922
  • Rule 5 of the Rules,
  • Sub-rule (1)
Smart Summary

Factual and Procedural Background

The claimant's petition before the Motor Accidents Claims Tribunal was dismissed for default. An application for restoration was made and dismissed by the Claims Tribunal. The claimant then filed an Original Petition in this Court under Article 227 challenging the dismissal of the restoration application; that petition was dismissed with the observation that an appeal under S.110D of the Motor Vehicles Act, 1939 should have been preferred. This appeal followed after delay was condoned. The impugned order dated 5-6-86 records that an adjournment was prayed for without stating reasons, the adjournment was refused, the petitioner was absent and the petition was dismissed. Prior to dismissal, the respondents had entered appearance, filed written statements, issues were framed and the matter was posted for evidence.

Legal Issues Presented

  1. Whether the Claims Tribunal, after framing issues, has jurisdiction to dismiss a claim petition for default without recording reasons or findings.
  2. Whether the Claims Tribunal must record findings on each issue and reasons therefor in a judgment/award when the petition passes the stage envisaged by Rule 5 and issues have been framed (with reference to Rule 20(1)).

Arguments of the Parties

Appellant's Arguments

  • Learned counsel for the appellant contended that after framing issues the Claims Tribunal has no power to dismiss the claim for default without adverting to reasons or grounds for such dismissal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Samsul v. L & L Insurance Co., AIR 1972 Gauhati 35 That after issues are framed the Claims Tribunal has no jurisdiction to dismiss the case for default; Rule 5 permits summary dismissal only where reasons to be recorded show no sufficient grounds for proceeding. The Court adopted the view as consistent with its interpretation and noted the facts were substantially similar.
Commr. of Income-tax v. Chinniappa Mudaliar, AIR 1969 SC 1068 That a rule enabling dismissal for default (R.24 of Appellate Tribunal Rules under the Indian Income-tax Act, 1922) was ultra vires the statute. The Court found support from this Supreme Court decision for the proposition that rules cannot confer power to dismiss for default inconsistent with statutory scheme.
Suresh Kumar Maharana v. Brundaban Bank, 1982 Acc CJ 296 : (AIR 1981 Orissa 203) Followed the Gauhati Division Bench view that dismissal for default after framing issues is not permissible. The Court noted this single Judge decision followed the Gauhati Division Bench, supporting the same principle.
Ponnamma Pillai v. Nambi, 1981 Ker LT 479 : (AIR 1981 Kerla 196) That a decision of the Claims Tribunal dismissing an application at any stage is an award under S.110B and provisions of S.110D (appeal) are available. The Court referred to this Full Bench decision to reject the contention that a dismissal for default is not an award.
Asit Kumar Mohanty v. Second Motor Accidents Claims Tribunal, 1989 Acc CJ 207 : (AIR 1989 NOC 131) That after Rule 5 and framing of issues the Claims Tribunal must pronounce a reasoned judgment. The Court referred to this Division Bench decision (Orissa) as further authority that the Tribunal must give a reasoned judgment after framing issues.

Court's Reasoning and Analysis

The Court examined Sections 110A, 110B and 110C of the Motor Vehicles Act, 1939 and the Rules made under S.111A. It noted:

  • Section 110B imposes a duty on the Claims Tribunal to hold an enquiry and make an award once an application is entertained.
  • Rule 5 permits summary dismissal only "if for reasons to be recorded the Claims Tribunal is of the opinion that there are no sufficient grounds for proceeding therewith"; if not dismissed under Rule 5, the Tribunal must proceed to give notice, allow evidence and frame issues.
  • Rule 8 requires framing of issues before evidence; Rule 20(1) mandates that the Tribunal's judgment shall record findings on each issue and the reasons for such findings and make an award specifying compensation and beneficiaries.
  • From these provisions the Court concluded that once the application survives the Rule 5 stage and issues are framed, the Tribunal is not empowered to dismiss for default without arriving at findings and reasons; dismissal without reasons after framing issues is not in accordance with law.
  • The Court relied on previous decisions (including Samsul, Commr. of Income-tax v. Chinniappa Mudaliar, Suresh Kumar Maharana, Ponnamma Pillai and Asit Kumar Mohanty) as supporting authorities for this interpretation.

Holding and Implications

Holding: The appeal is allowed; the impugned order dated 5-6-86 is set aside. The Claims Tribunal is directed to proceed with the enquiry and pass an award in accordance with law.

Implications: Direct effect on the parties is that the dismissal for default is quashed and the Tribunal must continue the inquiry and deliver a reasoned judgment/award. The opinion does not discuss broader implications beyond this direction.

    M.R Lukose v. V. Govindan Nair (Kuttan) And Others

    Thomas, J.:— This appeal is by a claimant whose claim petition was dismissed by the Motor Accidents Claims Tribunal for default. Though the appellant filed an application for restoration of the petition, the Claims Tribunal dismissed that application. The appellant then moved an Original Petition in this Court under Article 227 of the Constitution challenging the said order by which the restoration application was dismissed. But the Original Petition was also dismissed with the observation that the appellant should have preferred an appeal as provided in S. 110D of the Motor Vehicles Act, 1939 (for short ‘the Act’) against the award by which the claim was dismissed. Hence this appeal after getting the delay condoned by this Court.

    2. The order dated 5-6-86 which is under challenge reads thus:

    “On behalf of the petitioner's counsel an adjournment is prayed for without stating any reason. Adjournment refused. Petitioner called, absent. Hence petition dismissed.”

    On filing the claim petition, the Claims Tribunal posted the case for further steps. The respondents entered appearance and filed written statements in answer to the averments in the claim petition. Issues were framed and the claim was posted for evidence which ultimately came up to 5-6-86 on which day the impugned award was passed. Learned counsel for the appellant contended that the Claims Tribunal has no power, after framing issues, to dismiss the claim for default without adverting to reasons or grounds for such dismissal.

    3. Section 110A of the Act provides for making application before the Claims Tribunal for compensation arising out of the motor accident. Sub-section (3) says that no application for compensation shall be entertained unless it is made within six months of the occurrence of the accident and its proviso enables the Claims Tribunal to entertain the application even after the expiry of the said period, if it is satisfied that the applicant was prevented by sufficient cause from making the application in time. Section 110B imposes a duty on the Claims Tribunal to hold an enquiry on receipt of an application and to make an award. Sec. 110C(1) gives power to the Claims Tribunal to follow such summary procedure as it thinks fit in holding the enquiry envisaged in the preceding section.

    4. A reference to the aforementioned provisions would indicate that the Claims Tribunal has to pass an award once it entertains an application. There is no escape from doing so. Then the question is whether any such award can be passed without adverting to any reason or without arriving at findings on the facts at dispute. S. 111A empowers the State Government to make rules “for the purpose of carrying into effect the provisions of Sections 110 to 110E”. Government of Kerala have made rules in exercise of the said provision. Such rules provide for the entertainment, consideration, disposal etc., of the applications for compensation. Rule 3(2) says that an application which is found defective on scrutiny may be returned by the Claims Tribunal for being submitted after curing the defects. Rule 5 empowers the Claims Tribunal to dismiss the application summarily, if for reasons to be recorded the Claims Tribunal is of the opinion that there are no sufficient grounds for proceeding therewith. If the application is not so dismissed, the Claims Tribunal has to send notice to the owner of the vehicle involved in the accident, its insurer and its driver and call upon them to produce any evidence which they may wish to tender. It is open to the Claims Tribunal to allow such opposite parties to file written statements. Rule 8 reads thus:

    “Framing of issues.—(1) After perusing the application and the written statement, if any, filed under Rule 7 and also the result of the examination, if any, under the same rule, of the parties, the Claims Tribunal shall frame issues before evidence is recorded.

    (2) The Tribunal may at any time before pronouncing judgment amend or delete issues already framed or frame additional issues on such terms as it thinks fit.”

    A reference to the above rules shows that the power of summary dismissal of an application can be exercised only under Rule 5 and once the application survives that stage, the Claims Tribunal cannot but proceed to the final end and make the award after passing through the stage of framing issues, taking evidence, etc. It is useful in this context to refer to Rule 20 which deals with “judgment and award of compensation”. Sub-rule (1) says that the Claims Tribunal in passing orders “shall record concisely in a judgment the findings on each of the issues framed and the reasons for such findings and make an award specifying the amount of compensation to be paid by the insurer or the owner in the case of vehicles which are not insured and also the person or persons to whom compensation shall be paid.” Its corollary is that even when the Claims Tribunal is not persuaded to grant any compensation to the claimants, the judgment shall contain finding on each of the issues framed and the reasons for such finding.

    5. Thus, it is the duty of the Claims Tribunal to pronounce judgment supported by reasons and findings as provided in Rule 20(1), while disposing of the application which passes the stage envisaged in Rule 5. In other words, the Act and Rules do not empower the Claims Tribunal to dismiss an application merely for default of the applicant without arriving at findings and without adverting to reasons after the stage of framing issues.

    6. A Division Bench of Gauhati High Court in Samsul v. L & L Insurance Co., AIR 1972 Gauhati 35 has adopted a view which is consistent with our interpretation. The facts in the said decision are substantially similar to the facts of this case. The relevant rule framed by the Assam Government is almost the same as Rule 5 of the Kerala Rules. While dealing with the said rule, the Division Bench has observed thus: “There is no provision for dismissal of a claim petition for default in the Act. Under Rule 5 of the Rules, the Claims Tribunal may dismiss an application summarily, if for reasons to be recorded, it is of the opinion that there are no sufficient grounds for proceeding therewith. If the application is not dismissed summarily under Rule 5, the Claims Tribunal has to proceed as provided by the subsequent Rules. On a careful consideration of the language of Section 110-B read with Rules 6 to 17 we are of the opinion that after the issues are framed following the procedure prescribed under the Rules, the Claims Tribunal has no jurisdiction to dismiss the case for default or in other words it has no jurisdiction to refuse to give an award. In any view of the matter, when the Claims Tribunal in conformity with Rule 5 has not dismissed the claim petition summarily but has framed the issues in conformity with Rule 16, it has to proceed with the case, hold the enquiry and decide the issues notwithstanding the default of either party”. Their Lordships found support from the decision of the Supreme Court in Commr. of Income-tax v. Chinniappa Mudaliar, AIR 1969 SC 1068 which held that R. 24 of the Appellate Tribunal Rules framed under the Indian Income-tax Act, 1922 is ultra vires to S. 33(4) of the said Act as the rule enabled the Appellate Tribunal to dismiss an appeal for default. A learned single Judge of Orissa High Court in Suresh Kumar Maharana v. Brundaban Bank, 1982 Acc CJ 296 : (AIR 1981 Orissa 203) followed the above quoted Division Bench decision of the Gauhati High Court. (Of course, the learned single Judge has found that any such dismissal, if made, will not amount to an award and hence no appeal will lie against such an order. That part of the judgment need not be considered now, as the Full Bench of this Court has found in Ponnamma Pillai v. Nambi, 1981 Ker LT 479 : (AIR 1981 Kerla 196) that a decision of the Claims Tribunal dismissing an application at any stage of the inquiry and for whatever reasons is an award under S. 110B and consequently the provisions in S. 110D can be resorted to.) A Division Bench of the Orissa High Court in Asit Kumar Mohanty v. Second Motor Accidents Claims Tribunal, 1989 Acc CJ 207 : (AIR 1989 NOC 131) after referring to the relevant provisions of the Act and Rules, (the Rules framed by the Orissa Government are also similar to the Kerala Rules) held that the Claims Tribunal, once it passes the stage of R. 5 and frames issues, has to pronounce a reasoned judgment.

    Viewed in the light of the above discussion, we are fortified in adopting the stand which we have taken. We hold, therefore, that the impugned order was not passed in accordance with law. Accordingly, we allow this appeal and set aside the impugned order. We direct the Claims Tribunal to proceed with the enquiry and pass an award in accordance with law.

    Appeal is disposed of in the above terms.

    Appeal allowed.

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    Comments

    M.R Lukose v. V. Govindan Nair (Kuttan) And Others
    (Jan 31, 1990)