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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Section 33(4) of the Indian Income-tax Act, 1922 and declared Rule 24 of the Appellate Tribunal Rules, 1946 ultra vires the Section 33(4). Section 33(4) of the Indian Income-tax Act, 1922
  • Orissa Motor Vehicles (Accidents Claims Tribunals) Rules, 1960. According to Rule 20 of the said Rules, the provisions of Order 9, C.P.C
  • Rule 20 of the Assam Motor (Accidents Claims Tribunals) Rules
  • Commissioner.10. Rule 24 of the Appellate Tribunal Rules,
  • Section 110-B of the Motor Vehicles Act.7. Section 110-B
  • default.4. Section 110-D of the Motor Vehicles Act, 1939,
  • provisions of Order 9 of the Civil Procedure Code
  • Order 9, R. 9, C.P.C read with Section 151, C.P.C
  • SECTION 110 MOTOR VEHICLES ACT
  • provisions of Section 110-B and Rules 16, 17
  • Section 110-B of the Motor Vehicles Act.
  • provisions of Section 33(4) and Rule 24,
  • Rules 17 and 19.under Rule 5
  • provisions of Order 9, C.P.C
  • sub-section (4) of Section 33
  • provisions of sub-section (2),
  • Rule 5 of the Rules
  • Rule 16, Rule 17
  • Section 110-D.
  • Section 110-B
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Section 33(4) of the Indian Income-tax Act, 1922 and declared Rule 24 of the Appellate Tribunal Rules, 1946 ultra vires the Section 33(4). Section 33(4) of the Indian Income-tax Act, 1922
  • Orissa Motor Vehicles (Accidents Claims Tribunals) Rules, 1960. According to Rule 20 of the said Rules, the provisions of Order 9, C.P.C
  • Rule 20 of the Assam Motor (Accidents Claims Tribunals) Rules
  • Commissioner.10. Rule 24 of the Appellate Tribunal Rules,
  • Section 110-B of the Motor Vehicles Act.7. Section 110-B
  • default.4. Section 110-D of the Motor Vehicles Act, 1939,
  • provisions of Order 9 of the Civil Procedure Code
  • Order 9, R. 9, C.P.C read with Section 151, C.P.C
  • SECTION 110 MOTOR VEHICLES ACT
  • provisions of Section 110-B and Rules 16, 17
  • Section 110-B of the Motor Vehicles Act.
  • provisions of Section 33(4) and Rule 24,
  • Rules 17 and 19.under Rule 5
  • provisions of Order 9, C.P.C
  • sub-section (4) of Section 33
  • provisions of sub-section (2),
  • Rule 5 of the Rules
  • Rule 16, Rule 17
  • Section 110-D.
  • Section 110-B
Smart Summary

Factual and Procedural Background

On 20-2-1979 a truck loaded with boulders met with an accident on a public road while coming from Naulpur towards Chandikhole. Four labourers travelling in the truck sustained injuries and each filed a separate claim petition under Section 110-A of the Motor Vehicles Act, 1939. These were registered as Misc. Cases Nos. 41, 42, 43 and 44 of 1979. Notices were issued to the owner and the insurer; the owner did not contest and the insurer filed a written statement and issues were settled.

Procedurally, Misc. Case No. 44 of 1979 was listed for hearing on 22-3-1980 while Misc. Cases Nos. 41, 42 and 43 were listed for 5-3-1980. On 5-3-1980 the Insurance Company petitioned for adjournment of Nos. 41–43 to 22-3-1980 so all four cases could be heard together. The Claims Tribunal rejected the adjournment request and dismissed the claim petitions in Misc. Cases Nos. 41, 42 and 43 for default on the ground that the claimants were not ready for hearing. The claimants appealed separately under Section 110-D of the Motor Vehicles Act; these three appeals were heard together and disposed of by the common judgment summarized here.

Legal Issues Presented

  1. Whether an appeal under Section 110-D lies against an order of the Claims Tribunal dismissing a claim petition for default (i.e., whether such an order "partakes of an award" and so is appealable).
  2. Whether the Claims Tribunal has jurisdiction to dismiss a claim petition for default after issues have been framed and the statutory scheme under Section 110-B and the Rules (in particular Rules 16, 17 and 19) requires the Tribunal to hold an inquiry and make an award.

Arguments of the Parties

Insurance Company's Arguments

  • The Insurance Company contended as a preliminary objection that no appeal lies against an order dismissing the claim petitions for default because Section 110-D confers a right of appeal only against an award of a Claims Tribunal; if there is no award, there can be no appeal under that provision.

Claimants' Arguments

  • The claimants argued that the impugned order was without jurisdiction and therefore non-existent in law. Their contention was that, after issues are framed, the Tribunal must hold an inquiry into the claim under Section 110-B and there is no scope for dismissing the claim petition for default.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Samsul Huda v. London and Lancashire Insurance Co. Ltd., AIR 1972 Gauhati 35 The principle that where issues have been framed and proceedings continued, the Claims Tribunal must decide the issues and give findings under the relevant Rules; there is no scope for dismissal of a claim for default at that stage. The court relied on this Division Bench decision to support the conclusion that after issues are framed the Claims Tribunal has no jurisdiction to dismiss the claim petition for default and must proceed to hold the inquiry and make an award.
Commissioner of Income Tax, Madras v. S. Chenniappa Mudaliar, Madurai, AIR 1969 SC 1068 Authority for the proposition that a subordinate rule (Rule 24 of the Appellate Tribunal Rules, 1946) which conflicts with a substantive provision of the Act (Section 33(4) of the Indian Income-tax Act, 1922) is ultra vires; in case of repugnancy the rule gives way to the statute. The court invoked the Supreme Court's approach to hold that where rules or subordinate provisions conflict with the substantive statutory scheme (here Section 110-B), they cannot be applied to defeat the Act's mandate that an inquiry be held and an award made; thus a rule permitting dismissal for default cannot prevail over the Act's requirement for inquiry and decision.

Court's Reasoning and Analysis

The court's reasoning proceeds in two related steps: first addressing appealability under Section 110-D and then addressing the Tribunal's jurisdiction to dismiss after framing of issues.

1. Appealability under Section 110-D:

  • The court examined Section 110-D which permits an appeal to the High Court "by any person aggrieved by an award of a Claims Tribunal." The Act does not define "award".
  • Relying on ordinary dictionary meanings (Concise Oxford Dictionary, Webster's New World Dictionary, Chambers Dictionary), the court held that "award" means a judicial decision or judgment. An award, therefore, contemplates a decision arrived at after an inquiry under Section 110-B.
  • When a claim petition is dismissed for default of the claimant, no inquiry into the claim is held and no adjudicative decision on the merits is reached. Consequently, such an order is not an "award" within the meaning of Section 110-D and is not appealable under that provision.
  • On this basis the court concluded the present appeals were not maintainable for lack of an appealable order under Section 110-D.

2. Jurisdiction of the Claims Tribunal to dismiss for default after issues are framed:

  • Section 110-B mandates that on receipt of an application under Section 110-A the Claims Tribunal "after giving the parties an opportunity of being heard, hold an inquiry into the claim" and "may make an award" determining compensation. The Tribunal must specify the amount payable by the insurer.
  • The Orissa Motor Vehicles (Accidents Claims Tribunals) Rules, 1960 (made under Section 111-A) incorporate, so far as may be, the provisions of Order IX, C.P.C. Rule 16 provides for framing of issues; Rule 17 requires the Tribunal to record evidence; Rule 19 requires the Tribunal to record findings on issues and to make an award specifying compensation.
  • Although Rule 5 of the Rules provides for summary dismissal in some circumstances, the court observed that if the petition is not dismissed under Rule 5 and the proceeding continues to the point where issues are framed (Rule 16), the Tribunal must proceed to decide the issues and record findings in accordance with Rules 17 and 19. Thus, the scheme of the Act and Rules enjoins a duty to hold an inquiry and make an award.
  • The court reasoned that a subordinate rule or practice that allows dismissal for default at the stage after issues have been framed would be inconsistent with the statutory requirement of inquiry and decision. The court drew support from the Gauhati Division Bench decision (Samsul Huda) which reached the same conclusion, and from the Supreme Court decision in Commissioner of Income Tax v. S. Chenniappa Mudaliar, which addressed the principle that rules cannot override substantive statutory provisions.
  • Accordingly, the court held that after issues are framed the Claims Tribunal has no jurisdiction to dismiss the claim petition for default or to refuse to make an award; the Tribunal must proceed with the inquiry, decide issues and record findings notwithstanding the default by either party.

3. Effect on the impugned order:

  • Applying the above reasoning, the court held that the impugned order dismissing the claim petitions for default after issues were framed was without jurisdiction and therefore a nullity.
  • However, because the court also held that no appeal lies under Section 110-D against such an order (it is not an award), it could not entertain the appeal to set aside the impugned order. The court therefore dismissed the appeals as not maintainable.
  • The court observed that the Tribunal is at liberty to ignore the impugned order and proceed with the case from the stage at which it was dismissed for default.

Holding and Implications

Holding: Appeals dismissed on the ground of non-maintainability.

Implications (direct effect and legal consequences as stated in the opinion):

  • The court held that an order dismissing a claim petition for default, insofar as it was made after issues were framed and without holding the inquiry required by Section 110-B, is not an "award" within Section 110-D and is therefore not appealable under that section.
  • The court further held that after issues are framed the Claims Tribunal lacks jurisdiction to dismiss the claim petition for default; the Tribunal must hold an inquiry, decide the issues and record findings and an award as required by the Act and Rules.
  • Although the impugned dismissal order was declared a nullity (being without jurisdiction), the court did not (and could not) set it aside in these appeals because of non-maintainability; the appeals were dismissed without costs.
  • The Tribunal was given leave to ignore the impugned order and proceed with the case from the stage at which it was dismissed for default, thereby allowing the statutory inquiry and determination to take place at the Tribunal level.
  • The judgment rests on existing statutory interpretation and precedent cited in the opinion; it does not purport to create a novel legal principle beyond the conclusions expressly stated above.

Disposition: Appeal dismissed (without any order as to costs).

    Suresh Kumar Moharana And Others v. Brundaban Barik And Another

    1. These three appeals have been heard together and will be disposed of by this common judgment.

    2. On 20-2-1979 while a truck loaded with boulders was coming from Naulpur towards Chandikhole, it met with an accident on the public road. Four labourers who were travelling by the truck sustained injuries as a result of the accident. They filed four separate claim petitions under Section 110-A of the Motor Vehicles Act, 1939, which were registered as Misc. Cases Nos. 41, 42, 43 and 44 of 1979. After the claim petitions were admitted, notices were issued to the owner and the insurer of the vehicle. The owner did not enter contest. The Insurance company filed its written statement and issues were settled. Misc. Case No. 44 of 1979 was posted to 22-3-1980 while the other three Misc. Cases were posted to 5-3-1980 for hearing. On 5-3-1980 the Insurance Company filed a petition for adjournment of Misc. Cases Nos. 41, 42 & 43 of 1979 to 22-3-1980 for analogous hearing of all the four cases as they arose out of one and the same accident. The Tribunal rejected the prayer and dismissed the claim petitions in Misc. Cases Nos. 41, 42 & 43 of 1979 for default as the claimants were not ready with the hearing. Aggrieved by this order, the claimants have preferred three separate appeals under S. 110D of the Act.

    3. The learned counsel appearing for the Insurance Company raised a preliminary objection that no appeal lies against the order dismissing the claim petitions for default. His contention is that the provisions of S. 110-D confer a right of appeal only against an award of the Claims Tribunal and if there is no award no appeal can lie.

    Counsel for the petitioner has, on the other hand, contended that the impugned order is without jurisdiction and is non-existent in the eye of law. The argument is that after the issues are framed the Tribunal must hold an inquiry into the claim and there is no scope for dismissing the claim petition for default.

    4. Section 110-D of the Motor Vehicles Act, 1939, provides as follows:

    “Section 110-D: (1) Subject to the provisions of sub-section (2), any person aggrieved by an award of a Claims Tribunal may, within ninety days from the date of the award, prefer an appeal to the High Court.

    Provided that the High Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.

    (2) No appeal shall lie against any award of a Claims Tribunal, if the amount in dispute in appeal is less than two thousand rupees.

    5. It is manifest that only when an order of the Tribunal partakes of an award the person aggrieved thereby can prefer an appeal under Section 110-D. The Act does not define an award. Therefore, its ordinary dictionary meaning is to be taken. According to the Concise Oxford Dictionary award means “a judicial decision”. The meaning as given in Webster's New World Dictionary is “a decision as by Judges”. The Chambers Dictionary gives the meaning as “judgment”. Thus, an award would comprehend a decision of the Tribunal. An enquiry into the claim as provided by Section 110-B culminates in an award. In dismissing a claim petition for default of the claimant no inquiry is held and no decision is arrived at by the Tribunal. Therefore an order of dismissal of a claim petition for default is not an award so as to attract the scope of Section 110-D, I would accordingly hold that the present appeal is not maintainable.

    6. The next question for consideration is whether the Tribunal has jurisdiction to dismiss a claim petition for default without holding an inquiry as contemplated under Section 110-B of the Motor Vehicles Act.

    7. Section 110-B provides as fallows:

    “On receipt of an application for compensation made under Sec. 110-A, the Claims Tribunal shall, after giving the parties an opportunity of being heard, hold an inquiry into the claim and may make an award determining the amount of compensation which appears to it to be just and specifying the person or persons to whom compensation shall be paid; and in making the award the Claims Tribunal shall specify the amount which shall be paid by the insurer.”

    8. In exercise of the powers under Section 111-A of the Act, the State Government have made rules which are called the Orissa Motor Vehicles (Accidents Claims Tribunals) Rules, 1960. According to Rule 20 of the said Rules, the provisions of Order 9, C.P.C shall, so far as may be, apply to proceedings before the Claims Tribunal. But neither the Act nor the Rules provide that after the issues are framed the Claims Tribunal may dismiss a claim petition for default of the claimant. Rule 20 only lays down that the provisions of Order 9, C.P.C may apply in so far as they may be made applicable. The issues are framed under Rule 16, Rule 17 provides that after framing the issues, the Claims Tribunal shall proceed to record evidence thereon which each party may desire to produce. According to Rule 19 the Claims Tribunal shall record concisely in a judgment the findings on each of the issues framed and the reasons for such finding and make an award specifying the amount of compensation to be paid by the insurer and also the person or persons to whom compensation shall be paid. Thus, it will be seen that under the scheme of the Act and the Rules the Claims Tribunal must hold an inquiry to adjudicate upon the claim for compensation and make an award determining the amount of compensation.

    9. No doubt, Rule 5 of the Rules provides for summary dismissal of a claim petition. But if the claim petition is not dismissed summarily under Rule 5 and the proceeding is continued in accordance with the subsequent rules and ultimately issues are framed under Rule 16, the Claims Tribunal must decide the issues and record its findings thereon in its judgment as provided by Rules 17 and 19. The Act and the Rules enjoin a duty upon the Tribunal to hold an inquiry into the claim and there is no scope for dismissal of the claim for default. On a careful consideration of the provisions of Section 110-B and Rules 16, 17 and 19, I am inclined to hold that after the issues are framed the Claims Tribunal has no jurisdiction to dismiss the claim petition for default or to refuse to make an award. After framing the issues, the Tribunal has to proceed with the case, hold the inquiry, decide the issues and record its findings thereon notwithstanding the default by either party. I am fortified in this view by the decision of a Division Bench of the Gauhati High Court in the case of Samsul Huda v. London and Lancashire Insurance Co. Ltd., AIR 1972 Gauhati 35, and the decision of their Lordships of the Supreme Court in the case of Commissioner Of Income Tax, Madras v. S. Chenniappa Mudaliar, Madurai , AIR 1969 SC 1068. In the Supreme Court Case their Lordships interpreted Section 33(4) of the Indian Income-tax Act, 1922 and declared Rule 24 of the Appellate Tribunal Rules, 1946 ultra vires the Section 33(4). Section 33(4) of the Indian Income-tax Act, 1922 runs as follows:—

    “The appellate Tribunal may after giving both parties to the appeal an opportunity of being heard, pass such orders thereon as it deems fit, and shall communicate any such orders to the assessee and to the Commissioner.”

    10. Rule 24 of the Appellate Tribunal Rules, as amended, is in the following terms:

    “Where on the day fixed for hearing or any other day to which the hearing may be adjourned, the appellant does not appear when the appeal is called, on for hearing, the Tribunal may dismiss for default.”

    11. After considering the provisions of Section 33(4) and Rule 24, their Lordships held as follows:

    “Assuming that for the aforesaid reasons the Appellate Tribunal is competent to set aside an order dismissing an appeal for default in exercise of its inherent power there are serious difficulties in upholding the validity of Rule 24. It clearly comes into conflict with sub-section (4) of Section 33 and in the event of repugnancy between the substantive provisions of the Act and Rule it is the Rule, which must give way to the provisions of the Act.”

    12. In the Gauhati case after the issues were framed the case was fixed for hearing on 30th June, 1969. On that date, the claimant prayed for an adjournment, but the prayer was rejected and the case was dismissed, for default. He filed a petition under Order 9, R. 9, C.P.C read with Section 151, C.P.C for setting aside the order of dismissal which was also dismissed for default. Aggrieved by this order, the claimant preferred an appeal and also filed a writ application under Articles 226 and 227 of the Constitution. Dealing with the writ application and construing the provisions of the Assam Motor (Accidents Claims Tribunals) Rules, 1960 and Section 110-B of the Act, the Division Bench held as follows (at p. 39):—

    “In the instant case no doubt Rule 20 of the Assam Motor (Accidents Claims Tribunals) Rules is not challenged as ultra vires Section 110-B of the Motor Vehicles Act. But it must be remembered that Rule 20 does not lay down that after the issues are framed in the case in accordance with Rule 16, the Claims Tribunal may dismiss the application for compensation for default of either party. Rule 20 generally lays down that these provisions of Order 9 of the Civil Procedure Code may be applicable in so far as they may be made applicable. Rule 20 does not provide that after framing of issues under Rule 16 an application may be dismissed for default without complying with Rules 17 and 19…………….under Rule 5 there may be a case of summary dismissal of an application but if the application is not dismissed summarily under Rule 5 and the proceeding is continued in accordance with the subsequent rules and ultimately issues are framed under R. 16, the Claims Tribunal must decide the issues and give its findings thereon in its judgment as provided by Rules 17 and 19. In other words the Claims Tribunal must hold the enquiry into the claim and there is no scope for dismissal of the claim for default at this stage.”

    It is to be noted in this connection that Rr. 5 to 19 of the Assam Motor Accidents Claims Tribunals) Rules, 1960 correspond to Rules 5 to 19 of the Orissa Motor Vehicles (Accidents Claims Tribunals) Rules, 1960.

    13. Considering the provisions of the Act and the Rules and relying upon the decisions referred to above, I am clearly of the opinion that the impugned order is without jurisdiction and hence it is a nullity. But it cannot be interfered with in this appeal in view of my earlier finding that no appeal lies against an order dismissing a claim petition for default. It is, however, open to the Tribunal to ignore the impugned order and proceed with the case from the stage at which it was dismissed for default.

    14. In the result, the appeal is dismissed on the ground of non-maintainability, but in the circumstances without any order as to costs.

    Appeal dismissed.

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    Suresh Kumar Moharana And Others v. Brundaban Barik And Another
    (May 1, 1981)