Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Smart Summary

Factual and Procedural Background

The appeals arise from a single judgment and award passed by the Motor Accident Claims Tribunal. The Insurance Company challenged the Tribunal's findings, particularly on issue no. 4, contending that the Tribunal failed to consider the objections raised in the appeals and that the findings were contrary to the material on record. The respondents also contested the Tribunal's finding on issue no. 2. The appeals seek quashing and setting aside of the impugned award with directions for the Tribunal to decide the issues afresh. The Tribunal had passed the award on 8.7.2009, and the appeals were heard together in a common judgment.

Legal Issues Presented

  1. Whether the impugned award on issue no. 4 by the learned Tribunal was passed without proper consideration of the objections and material on record, warranting quashing and remand for fresh decision.
  2. Whether the finding on issue no. 2 by the learned Tribunal was contrary to the material on record and should be re-examined if the matter is remanded.
  3. Whether the claimants in appeal no. 5000/2009, who have not received any amount under the award, should be entitled to immediate disbursement of at least 50% of the awarded amount.

Arguments of the Parties

Appellant's Arguments (Insurance Company)

  • The learned Tribunal failed to consider the objections raised in the appeals while passing the impugned award.
  • The finding on issue no. 4 is contrary to the material on record and should be quashed and set aside.
  • The matter should be remanded to the Tribunal for fresh consideration in light of the objections and relevant precedents.
  • Relied on various Supreme Court and High Court judgments to support their contentions.

Respondents' Arguments

  • The finding on issue no. 2 by the Tribunal is also contrary to the material on record and should be reconsidered if the matter is remanded.
  • Claimants in appeal no. 5000/2009 have not received any amount and should be directed to receive at least 50% of the awarded amount immediately.
  • Relied on the judgment in Uttar Pradesh State Road Transport Corporation v. Kulsum (2011) 8 SCC 142.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
2005 ACJ (SC) 1 - Dhanraj v. New India Assurance Co. Ltd. Supporting the need to consider objections and material on record before passing award. Relied upon to emphasize that the Tribunal must address objections raised by parties.
2007 ACJ (SC) 821 - New India Assurance Co. Ltd. v. Meena Bai Similar principle regarding proper adjudication of claims by Tribunal. Used to support quashing and remand of impugned award.
2007 ACJ (SC) 818 - Oriental Insurance Co. Ltd. v. Jhuma Saha Precedent on Tribunal's duty to consider material and objections. Applied to reinforce grounds for interference with the award.
2004 ACJ (SC) 1 - National Insurance Co. Ltd. v. Swarn Singh Principle on proper evaluation of evidence and objections. Considered in directing fresh adjudication.
2004 (3) TAC (SC) 577 - National Insurance Co. v. Chinnamma Related to procedural fairness and thorough consideration by Tribunal. Used to justify remand for fresh decision.
2006 (3) TAC (Raj.) 113 - National Ins. Co. v. Om Prakash Supporting principles of fair adjudication. Referenced to uphold the need for reconsideration.
2009 ACJ (SC) 998 - New India Ass. Co. v. Sadanand Mukhi Emphasizing Tribunal’s duty to address objections. Applied in the context of quashing the impugned award.
2007 ACJ 1909 (SC) - Oriental Ins. Co. Ltd. v. Brij Mohan On correctness of Tribunal’s findings and procedural compliance. Considered for directing fresh hearing.
2005 ACJ (SC) 1323 - National Ins. Co. v. Prembai Patel Precedent on re-examination of Tribunal's findings when contrary to record. Supported quashing and setting aside of award.
1997 ACJ (SC) 1065 - United India Ins. Co. v. Gian Chand On procedural fairness and evidence evaluation. Used to justify remand.
II (2010) ACC (SC) 518 - New India Ass. Co. Ltd. v. Kusum Principles related to proper disposal of claims. Referenced to guide Tribunal's fresh decision.
2011 8 SCC 142 - Uttar Pradesh State Road Transport Corporation v. Kulsum On reconsideration of findings and interim relief. Relied upon to support directions for fresh decision and partial disbursement.

Court's Reasoning and Analysis

The Court observed that the learned Tribunal passed the impugned award without adequately considering the facts and objections raised by the appellants. The Tribunal’s findings on issue nos. 2 and 4 were found to be contrary to the material on record. The Court noted that the award appeared to have been passed "surreptitiously," indicating a lack of proper adjudication. Given these deficiencies, the Court held that the impugned award required interference. It directed the Tribunal to re-examine the issues afresh, taking into account the grounds raised by the appellants, the cited precedents, and any additional judgments brought to its notice. The Court also addressed the practical concern that the claimants in one of the appeals had not received any amount and ordered immediate disbursement of 50% of the awarded sum deposited by the appellants, while protecting any amounts already received by other claimants from recovery.

Holding and Implications

DISPOSED OF: Both civil miscellaneous appeals are partly allowed. The impugned award dated 8.7.2009, particularly on issue nos. 2 and 4, is quashed and set aside.

The matter is remanded to the Motor Accident Claims Tribunal with directions to decide the issues afresh in light of the objections raised, relevant precedents, and after giving all parties an opportunity to be heard. The Tribunal is also directed to immediately disburse 50% of the awarded amount to the claimants in claim petition no. 92/2007 (75/2004) from the amount deposited by the appellants. No recovery shall be made from claimants of claim petition no. 90/2007 (97-98) if they have already received any amount.

No broader precedent is established beyond the direct effect of ordering a fresh adjudication and partial disbursement to claimants.

    United India Insurance Company v. Rajan & Ors.

    BY THE COURT:

    Since both the appeals arise out of one judgment and award passed by the learned Tribunal, hence the arguments have been heard together and they are being decided by this common judgment.

    At the very outset, learned counsel for the Insurance Company submits that the learned Tribunal while passing the impugned award has not taken into consideration the objections which he has raised by way of the aforesaid appeals. The finding of the learned Tribunal on issue no. 4 is contrary to the material available on record. Thus, the impugned award passed by the learned Tribunal qua issue no. 4 be quashed and set aside and the matter be remanded to the learned Tribunal with the direction to decide the matter afresh in the light of objections which he has raised by way of the aforesaid appeals. In support of his contentions, he has placed reliance on the following judgments:

    i) 2005 ACJ (SC) 1 - Dhanraj v. New India Assurance Co. Ltd.

    ii) 2007 ACJ (SC) 821 - New India Assurance Co. Ltd. v. Meena Bai

    iii) 2007 ACJ (SC) 818 - Oriental Insurance Co. Ltd. v. Jhuma Saha

    iv) 2004 ACJ (SC) 1 - National Insurance Co. Ltd. v. Swarn Singh

    v) 2004 (3) TAC (SC) 577 - National Insurance Co. v. Chinnamma

    vi) 2006 (3) TAC (Raj.) 113 - National Ins. Co. v. Om Prakash

    vii) 2009 ACJ (SC) 998 - New India Ass. Co. v. Sadanand Mukhi

    viii) 2007 ACJ 1909 (SC) - Oriental Ins. Co. Ltd. v. Brij Mohan

    ix) 2005 ACJ (SC) 1323 - National Ins. Co. v. Prembai Patel

    x) 1997 ACJ (SC) 1065 - United India Ins. Co. v. Gian Chand

    xi) II (2010) ACC (SC) 518 - New India Ass. Co. Ltd. v. Kusum

    E converso, the learned counsel for the respondents also contended that the finding of the learned Tribunal on issue no. 2 is contrary to the material on record. In case this Court is remanding the matter, then the learned Tribunal may be directed to decide issue no. 2 afresh. In support of his contentions, he has placed reliance on the judgment rendered in the case of Uttar Pradesh State Road Transport Corporation v. Kulsum reported in (2011) 8 SCC 142. He further submits that the claimants in appeal no. 5000/2009 (Claim Petition No. 92/2007 (75/2004)) have not received a single penny, hence the learned Tribunal be directed to disburse at-least 50% amount under the award to the claimants.

    I have heard learned counsel for the parties and carefully perused the relevant material on record including the impugned award.

    In my considered view, the learned Tribunal while passing the impugned award has not gone through the facts of the case and passed the impugned award surreptitiously.

    Thus, the impugned award passed by the learned Tribunal needs interference by this Court.

    In the result both the civil misc. appeals are partly allowed and the impugned award dated 8.7.2009 passed by Motor Accident Claims Tribunal, qua issue nos. 2 and 4 is quashed and set aside with the direction to the learned Tribunal to decide the matter afresh, as early as possible, in the light of the grounds raised by the appellants in the aforesaid appeals and the aforesaid judgments, if applicable and the other judgments to be cited by learned counsel for the parties, after issuing notice to all the concerned parties and giving opportunity of hearing to them.

    Both the parties are directed to appear before the learned Tribunal on 18.3.2013

    The learned Tribunal is directed to disburse 50% amount under the award to the claimants in claim petition no. 92/2007 (75/2004) immediately, which have been deposited by the appellants. However, it is made clear that if any amount has been received by the claimants in claim petition no. 90/2007 (97-98), the same shall not be recovered from them.

    Consequent upon the disposal of appeals, the stay applications also stand disposed of.

    Use AI to get other relevant cases.

    Comments

    United India Insurance Company v. Rajan & Ors.
    (Jan 3, 2013)