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Smart Summary

Factual and Procedural Background

On 30.4.1993 at about 11:30 AM a motor accident occurred at Pratapgarh. The accident resulted in the instantaneous death of Khokan Bhattacharjee and grievous injuries to Dilip Chakraborty. The legal representatives of the deceased and the injured person filed claims before the Motor Accident Claims Tribunal, West Tripura under section 166 of the Motor Vehicles Act, 1988 for compensation and also filed applications under section 140 of the Act for interim relief. The learned Member of the Motor Accident Claims Tribunal, by two separate orders dated 22.8.1994, granted the claims and directed United India Insurance Co. Ltd. to pay the awarded sums. Aggrieved, the petitioners (insurance company) filed the present revision petitions under section 115 of the Code of Civil Procedure read with Article 227 of the Constitution of India. Both revision petitions arise from the same accident and were heard together.

Legal Issues Presented

  1. Whether an application under section 115 of the Code of Civil Procedure is maintainable against an award passed by a Member of the Motor Accident Claims Tribunal under section 140 of the Motor Vehicles Act (i.e., whether the Claims Tribunal is a "civil Court" subordinate to the High Court for the purposes of section 115 CPC).
  2. Whether the High Court's supervisory jurisdiction under Article 227 of the Constitution permits interference with an order passed by the Claims Tribunal in the exercise of its powers under section 140 of the Act, particularly where an error of law or a wrong decision is alleged.

Arguments of the Parties

Petitioner's Arguments (United India Insurance Co. Ltd.)

  • The vehicle involved in the accident, TRL 3590 (Truck), had no insurance policy on the date of the accident. (This ground was mentioned but not pressed before the Court.)
  • The driver driving the vehicle at the time of the accident did not possess a valid driving licence; documents supporting this contention were submitted before the Motor Accident Claims Tribunal but, it was argued, the Tribunal ignored those documents and erroneously made the finding against the petitioner, resulting in the interim award being directed against the insurer.

Respondents' Arguments (Claimants)

  • No application under section 115 CPC is maintainable against an award passed by a Member of the Motor Accident Claims Tribunal under section 140 of the Act because the Claims Tribunal is not a "civil Court" in the ordinary sense and therefore not subordinate to the High Court for revisional jurisdiction.
  • The High Court's supervisory jurisdiction under Article 227 is limited; it is not to correct mere errors of law or reweigh evidence. A mere wrong decision is not sufficient to attract Article 227 jurisdiction.
  • Section 140 (no-fault interim compensation) is part of remedial, social-welfare oriented provisions and should be interpreted beneficially in favour of claimants; technicalities should not defeat prompt interim relief under section 140.
  • Reliance was placed on several precedents to support these contentions (see table of precedents below).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Associate Cement Companies Ltd. vs. PN Sharma, AIR 1965 SC 1595 Distinction between a "Court" (ordinary courts of civil judicature) and a "Tribunal"; criteria for what constitutes a Court in the ordinary hierarchy. Relied upon by respondents to support the submission that the Claims Tribunal is not a civil Court subordinate to the High Court under section 115 CPC; the Court discussed the distinction in considering the maintainability of revision petitions.
Durga Shankar Mehta vs. Raghuraj Singh, AIR 1954 SC 520 (at 522) Observation that both Courts and Tribunals are adjudicating bodies constituted by the State and invested with judicial functions, but their procedures and positioning may differ. Quoted in the opinion to explain similarities and differences between Courts and Tribunals while analysing whether the Claims Tribunal should be treated as a civil Court for revisional jurisdiction.
Beeran vs. Rajappan, 1980 ACJ 287 (Kerala) Considered whether the Claims Tribunal was a "Court" and whether its orders were amenable to revisional jurisdiction under section 115 CPC; observed Tribunals are similar to but not Courts of civil judicature. Referenced in support of the proposition that Claims Tribunals, though judicial in function, are not part of the ordinary civil court hierarchy and hence not subject to section 115 revisional jurisdiction.
Mohd. Yunus vs. Mohd. Mustaqim & others, AIR 1984 SC 38 Principle that a mere wrong decision without more does not attract the supervisory jurisdiction of the High Court under Article 227; Article 227 is limited to ensuring inferior Courts/Tribunals function within limits of their authority, not to correct errors of law. Relied upon to emphasise the limited scope of Article 227 and to argue against interference with Claims Tribunal orders merely because they are alleged to be erroneous.
Narendra Singh vs. Oriental Fire and General Insurance Co. Ltd., AIR 1987 Rajasthan 77 Support for interpreting provisions for prompt/no-fault compensation beneficially in favour of claimants and against technical impediments. Relied upon by respondents to argue that section 140 should be applied to secure prompt interim relief and that technicalities should not defeat such statutory relief.
Smti Samati Deb Barma & others vs. State of Tripura & others, (1985) 1 GLR 420 Local Division Bench decision supporting benefit-of-doubt/social-welfare interpretation in the context of claims before the Tribunal. Placed reliance upon by respondents to buttress the argument that section 140 awards should operate to secure prompt compensation and not be frustrated by technical objections.

Court's Reasoning and Analysis

The Court heard counsel for both sides and recited the narrow facts. The petitioner's principal contention at the Bar (after not pressing the insurance-policy point) was that the driver had no valid licence and that documentary evidence supporting this was ignored by the Claims Tribunal when making the interim award under section 140.

The respondents argued that the Claims Tribunal is not a civil Court of the ordinary hierarchy and therefore orders passed under section 140 are not amenable to revision under section 115 CPC; additionally, the supervisory jurisdiction under Article 227 is narrowly circumscribed and cannot be used to correct mere errors of law or reweigh evidence. The respondents supported these contentions with authority of the Supreme Court and other decisions.

The Court analysed the authorities and provisions. It noted observations from the Supreme Court that, although proceedings before the Claims Tribunal closely resemble civil proceedings, that does not automatically make the Tribunal a Court subordinate to the High Court for purposes of section 115 CPC. The Court accepted the principle (from Mohd. Yunus) that Article 227 is limited to ensuring an inferior Court/Tribunal functions within the limits of its authority and is not a forum to correct an error apparent on the record or an error of law.

The Court also considered the nature and purpose of section 140 (referred to as section 92A in earlier enactments) as a provision for prompt, peremptory interim compensation in a no-fault situation. The Court observed that section 140 awards are intended to secure prompt relief and that technical niceties should not defeat such awards. Crucially, the Court held that an insurer is not precluded from raising objections at the final hearing under section 166 (where the Tribunal may order the owner to reimburse the insurer), so an interim award under section 140 does not finally determine the insurer's liability or absolve it should it later successfully disprove liability at the final stage.

Applying these principles to the facts, the Court found that the petitioner's contention about the driver's licence could be raised and tested at the final hearing under section 166 and that the interim award under section 140 did not make the Claims Tribunal a civil Court subordinate to the High Court for the purposes of section 115 CPC. Consequently, revision under section 115 was not the appropriate remedy against the Tribunal's interim order.

Holding and Implications

Holding: The revision petitions are dismissed. The Court held that the Motor Accident Claims Tribunal, for the purposes of section 115 of the Code of Civil Procedure, is not a civil Court subordinate to the High Court and its orders are not amenable to the revisional jurisdiction of the High Court under section 115 CPC.

Implications:

  • The direct effect is that the interim awards made by the Claims Tribunal under section 140 of the Motor Vehicles Act stand and cannot be challenged by way of revision under section 115 CPC in the High Court (on the basis that the Tribunal is a civil Court subordinate to the High Court).
  • An insurer retains the right to raise objections and contest liability at the final hearing under section 166 of the Act; the interim award under section 140 does not preclude the insurer from establishing lack of liability and seeking reimbursement from the owner if the insurer succeeds at final adjudication.
  • The Court declined to exercise revisional jurisdiction in these matters; there is no order as to costs.

    United India Insurance Co.Ltd v. Dilip Chakraborty; Swapan Bhattacharjee

    Both these revision petitions filed under section 115 of CPC read with Article 227 of the Constitution of India arise out of a motor accident which had taken place on 30.4.1993 causing grievous injuries on the person of Shri Dilip Chakraborty, respondent No. l in Civil Revision No.56 of 1994 and death of Khokan Bhattacharjee in Civil Revision No.57 of 1994. Since both theses petitions related to the same accident 1 propose to dispose of both these petitions by this common order.

    2.1 have heard Mr. A.Gon Choudhury, the learned counsel appearing on behalf of the petitioner and Mr. M.Kar Bhowmik and Mr. BN Majumdar, the learned counsel appearing on behalf of the respondents.

    3. The facts leading to these revision petitions lie in a narrow compass and may be stated as under. On 30.4.93 around 11.30 AM a motor accident took place at a place called Pratapgarh as a result of which one person namely, Kokhan Bhattacharjee died instantaneously and aforesaid respondent No. l, namely, Dilip Chakraborty sustained severe injuries on his person. The legal representatives of deceased Khokan Bhattacharjee as well as injured person, namely, Dilip Chakraborty filed application before the Motor Accident Claims Tribunal, West Tripura for compensation under section 166 of the Motor Vehicles Act, 1988 (hereinafter refered to as the Act). Along with those petitions the claimants also filed applications under section 140 of the Act for the interim relief. Learned Member of the Motor Accident Claims Tribunal disposed of the petitions by two separate orders passed on 22.8.1994 granting the claim of compensation and directed that the petitioner namely, United India Insurance Co. Ltd. to pay the awarded sum.

    4. Aggrieved, the petitioners filed this revision petitions under the provisions mentioned above.

    5. Mr.Gon Choudhury, the learned counsel appearing on behalf of the petitioner challenged the order of the learned Member of the Motor Accident Claims Tribunal on two grounds, namely, that on the date of accident the vehicle, namely, TRL 3590 (Truck) which was involved in the accident had no insurance policy and (2) the driver who was driving the vehicle at the time of accident had no valid licence. But in course of his argument, Mr. Gon Choudhury did not press for the first point. He however urged before this Court that the driver who was driving the vehicle at the time of accident had no valid licence and in support of this contention the petitioner submitted some relevant documents before the learned Member of the Motor Accident Claims Tribunal. But learned Member, Motor Accident Claims Tribunal ignored those documents and erroneously made the finding against the petitioner requiring it to pay the interim award.

    6. Mr. Kar Bhowmik, the learned counsel appearing on behalf of the respondents has on the other hand contended that no application under section 115 of CPC is maintainable against an award which was passed by a Member, Motor Accident Claims Tribunal under the provision of section 140 of the Act by reason of the fact that the Tribunal is not a civil Court as we ordinarily mean. In support of his contention Mr. Kar Bhowmik has placed reliance upon a decision rendered by the Apex Court in the case of Associate Cement Companies Ltd. vs. PN Sharma, AIR 1965 SC 1595. In the decision referred to above their Lordships made a distinction between a Court and a Tribunal and observed :

    The expression 'Court' in the context denotes a Tribunal constituted by the State as a part of the ordinary hierarchy of Courts which are invested with the State's inherent judicial power. A sovereign State discharges legislative, executive and judicial functions and can legitimately claim corresponding powers which are described as legislative, executive and judicial powers. Under our Constitution, the judicial functions and powers of the State are primarily conferred on the ordinary Courts which have been constituted under its relevant provisions. The Constitution recognised a hierarchy of Courts and to their adjudication are normally entrusted all disputes between the citizens and the State these Courts can be described as ordinary Courts of civil judicature. They are governed by their prescribed rules of procedure and they deal with questions of fact and law raised before them by adopting a process which is described as judicial process. The powers which these Courts exercise, are judicial functions and the decisions they reach and pronounce are judicial decision.

    Regarding 'Tribunal' it was observed : Special matter and questions are entrusted to them for their decision and in that sense, they share with the Courts one common characteristic; both the Courts and the Tribunal are constituted by the State and are invested with judicial as distinguished from purely administrative or executive functions, (vide Durga Shankar Mehta vs. Raghuraj Singh, AIR 1954 SC 520 at 522). They are both adjudicating bodies and they deal with and finally determine disputes between parties which are entrusted to their jurisdiction. The procedure followed by the Courts is regularly prescribed and in discharging their functions and exercising their powers, the Courts have to conform to that procedure. The procedure which the Tribunal have to follow may not always be so strictly prescribed, but the approach adopted by both the Courts and the Tribunals is substantially the same, and there is no essential difference between the functions that they discharge. As in the case of Courts, so in the case of Tribunals, it is the State's inherent judicial power which has been transferred and by virtue of said power, it is the States inherent judicial function which they discharge. Judicial functions and judicial power are one of the essential attributes of a sovereign State, and on considerations of policy, the State transfers its judicial functions and powers mainly to the Courts established by the Constitution; but that does not affect the competence of the State, by appropriate measures, to transfer a part of its judicial powers and functions to Tribunal by entrusting to them the task of adjudicating upon special matter and disputes between parties......

    The civil Court does not possess the power to device its own procedure. It is obliged to follow the provisions of the Code of Civil Procedure in the trial of the suits in letter and spirit. There is no such obligation on the Claims Tribunal. Subject to the rules framed it is entitled to follow such summary procedure as it may think fit. If the Claims Tribunal has been accepted or treated to be a 'Court' by the Parliament then there was no need to enact section 110F of the Act barring the jurisdiction of the civil Courts to entertain any questions relating to any claim for compensation which may be adjudicated upon the Claims Tribunal or to issue injunction in respect of such claims. It was equally unnecessary in this context to provide by sub-section (2) of section 11OC of the Act that the Claims Tribunal shall be deemed to be a civil Court for the purpose of punishment for contempt and perjury. A Division Bench of the Kerala High Court in Beeran vs. Rajappan, 1980 ACJ 287 (Kerala), had an occasion to consider as to whether the Claims Tribunal was a Court and its orders were amenable to the revisional jurisdiction of the High Court under section 115 of the Code of Civil Procedure. After carefully examining the law on the point it was observed:

    With the growth of civilisation and the problem of modern life, a large number of Administrative Tribunal have come into existence. These Tribunals have the authority of law to pronounce upon valuable rights; they act in a judicial manner and even take evidence on oath, but they are not part of the ordinary Courts of civil judicature. They share the exercise of the judicial power of the State, but they are brought into existence to implement some administrative policy or to determine controversies arising out of some administrative law. They are very similar to Court, but are not courts......

    By 'Courts' is meant Courts of civil judicature and by 'Tribunals'; those bodies of men who are appointed to decide controversies arising under certain special laws.

    Their procedures may differ, but the functions are not essentially different. What distingushes them has never been successfully established. Lord Stemp said that the real distinction is that Courts have an air of detechment.

    7. In this context it has also been urged by Mr. Kar Bhowmik that to interfere with an order passed by a Motor Accident Claims Tribunal in exercise of the powers under Article 227 of the Constitution of India is also very much limited and that such an order cannot be interferred with even if there is error of law. In support of his contention learned counsel for the respondents has placed reliance upon the decision of the Supreme Court rendered in the case of Mohd. Yunus vs. Mohd. Mustaqim & others reported in AIR 1984 SC 38. In this decision their Lordships under para 7 of the judgment observed :

    A mere wrong decision without anything more is not enough to attract the jurisdiction of the High Court under Article 227. The supervisory jurisdiction conferred on the High Courts under Article 227 of the Constitution is limited to seeing that an inferior Court or Tribunal functions within the limits of its authority and not to correct an error apparent on the face of the record much less an error of law. In exercising the supervisory power under Article 227, the High Court does not act an appellate Court or Tribunal. It will not review or reweigh the evidence upon which the determination of the inferior Court or Tribunal purports to be based or to correct error of law in the decisions.

    8. It would be apparent from the observation of the Supreme Court quoted above that the proceeding before the Claims Tribunal closely resembled proceeding in civil Court but it has not been held that Claims Tribunal is a Court subordinate to the High Court.

    9. In this context it has also been submitted by Mr.Kar Bhowmik that the provisions for payment of prompt and immediate compensation in respect of no fault liability under the provisions of section 140 of the Act is in the spirit of social welfare legislation and should always be interpreted beneficially in favour of the claimant and that technicalities of law should not be allowed to have any upper hand. In support of his contention Mr.Kar Bhowmik has placed reliance upon a decision in the case of Narendra Singh vs. Oriental Fire and General Insurance Co. Ltd., Delhi & others reported in AIR 1987 Rajasthan 77 and another decision of a Division Bench of this Court rendered in the case of Smti Samati Deb Barma & others vs. State of Tripura & others reported in (1985) 1 GLR 420.

    10. I find much substance in the submission of Mr. Kar Bhowmik as a persual of the provisions of section 140 of the Act will also show that the award which is passed or being passed under section 92 A (section 140 of the present Act) is a peremptory award and technical question on fine question of law should not stand in the way of passing any award under section 140 of the Act. In the instant case the only contention that was canvassed at the bar by Mr. Gon Choudhury, the learned counsel appearing on behalf of the petitioner is that the driver who actually drove the vehicle at the time of accident had no valid licence. That may be a fact or may not be a fact. But there would be no bar for the Insurance Company to raise the objection at the time of final hearing for compensation under section 166 of the Act which empowers the Tribunal to pass an order directing the owner to ensure to pay the Insurance Company the amount which was paid to the claimants under section 140 of the Act. In my opinion the interim award made under section 140 of the Act would not have the effect of holding that the parent claim in case the Insurance Company is able to successfully prove it and absolve itself of its responsibilities to indemnify the owner of the vehicle.

    11. For the foregoing reasons, I hold that the Claims Tribunal while deciding claim applications filed under the Act is not civil Court subordinate to the High Court for the purpose of section 115 of the Code of Civil Procedure and the orders passed by the Claims Tribunal are not amenable to the revisional jurisdiction of the High Court. The revision petitions are accordingly dismissed but under the circumstances there would be no order as to cost.

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    United India Insurance Co.Ltd v. Dilip Chakraborty; Swapan Bhattacharjee
    (Feb 9, 1995)