Asha Devi @ Asha Rani & Anr vs National Insurance Company Limited

Sandeep Sharma, J

Instant petition filed under Article 227 of the Constitution of India takes exception to order dated 2.12.2020, passed by Motor Accident Claims

Tribunal-I, Shimla, District Shimla, H.P., in CMA No.177-S/6 of 2020 in MAC No.51-S/2 of 2019, titled as Smt. Asha Devi @ Asha Rani versus

National Insurance Company Limited, whereby learned Tribunal below refused to release the entire award amount in favour of the applicant/petitioner

No.1, despite the fact that petition bearing MAC No. 51-S/2 of 2019, having been filed by the applicants/petitioners stands finally decided and no

appeal, whatsoever, has been filed against the award dated 29.7.2020 passed by Motor Accident Claims Tribunal-I, Shimla in the superior Court of

law.

Precisely, the facts of the case as emerge from the record are that the applicants/petitioners filed petition under Section 166 of the Motor Vehicles

Act,1988 ( for short ‘Act’), seeking therein compensation on account of death of Sh. Ashish Kumar, predecessor in interest of the

applicants/petitioners, but before the mater could be decide on its own merits by the Tribunal below, parties to the lis entered into the compromise deed

Ex.C1. As per the compromise, applicants/petitioners came to be entitled for sum of Rs. 34 lacs as full and final settlement of the claim. Vide award

dated 29.7.2020, learned Tribunal below while accepting the compromise deed entered interse parties ordered that amount of compensation is

apportioned amongst the petitioners No.1 and 2 as under:-

Claimant No.1, Asha Devi =90%

Claimant No.2, Aman Kaundal = 10%

Vide aforesaid award, Tribunal below also directed the respondent-Insurance Company to deposit the entire amount of compensation within a

period of 45 days from the date of passing of award, failing which, applicants/petitioners would be entitled for interest at the rate of 6% per annum

from the date of petition till its realization.

On 12.10.2020, applicant/petitioner No.1,Smt. Asha Devi @ Asha Rani filed an application for release of the award amount falling in her share in

terms of award dated 29.7.2020 passed by learned Tribunal below in MAC No. 51-S/2 of 2019. However, fact remains that learned Tribunal below

despite having taken note of the fact that applicant/petitioner No.1, Smt. Asha Devi is in dire need of money to meet her day to day expenses and

further to payback the amount borrowed from the relatives, ordered for release of sum of Rs. 2 lacs in favour of applicant/petitioner No.1, Asha Devi,

whereas applicant/ petitioner No.1, Smt. Asha Devi had prayer for release of the entire amount falling in her share. Learned Tribunal below having

taken note of the fact that prior to filing of the application at hand, applicant/petitioner No.1 was also released sum of Rs.5.00 lacs on 9.10.2020,

released sum of Rs. 2 lacs instead of releasing entire award amount and as such, applicant/petitioner No.1 has approached this Court in the instant

proceedings, seeking therein direction to the learned Tribunal below to release the entire award amount falling in her share.

Mr. Jagdish Thakur, learned counsel representing the respondent/Insurance Company fairly states that he does not intend to file any reply to the

petition and shall have no objection in case the prayer made in the petition is allowed. Mr. Thakur, fairly states that since award dated 29.7.2020 has

attained finality coupled with the fact that applicant/petitioner No.1 is major, learned Tribunal below ought to have released entire award amount falling

in the share of applicant/petitioner No.1.

Having heard learned counsel representing the parties and perused the averments contained in the petition as well as documents annexed therewith,

this Court finds that the claim petition having been filed by the applicants/petitioners was allowed on the basis of the compromise arrived interse

parties, factum whereof stands duly recorded in the shape of the statements of both the parties recorded by the Tribunal below before passing the

award dated 29.7.2020. Statements made by the parties to the lis before the learned Tribunal below clearly reveal that both the parties agreed for Rs.

34 lacs in lump sum and as such, Tribunal below vide award dated 29.7.2020 while allowing claim petition for aforesaid sum held applicant/petitioner

No.1 Smt. Asha Devi entitled to 90% of the award amount and applicant/petitioner No.2, Aman Kaundal to 10% of the award amount.

Since, it is not in dispute interse parties that award dated 29. 7.2020 was based upon the compromise interse parties and same has attained finality

on account of the fact that none of the parties have laid challenge to the aforesaid award in the superior court of law, there was no occasion,

whatsoever for the Tribunal below to release amount of compensation in piece meals, especially when applicant/petitioner No.1 is major. No doubt,

learned Tribunal below with a view to protect the interest of minor can always order to withhold the amount of compensation till the time minor attains

majority, but once applicants/claimants is major and award on the basis of which he/she becomes entitled for compensation has attained finality, court

is not justified in releasing the amount in piece meals. Otherwise very purpose of awarding compensation on account of the injuries or death would be

defeated. Needless to say, amount in such like petitions is always awarded to relive injured or claimants of deceased from the destitution and enable

them to meet their day to day expenses.

Consequently, in view of the above, the present petition is allowed and learned Tribunal below is directed to release the entire award amount of

compensation falling in the share of applicant/petition No.1 forthwith by ordering remittal of the same in her saving bank account, details whereof shall

be furnished within a period of one week.

Registry of this Court is directed to supply copy of this order to all the Courts below for necessary compliance.

The petition stands disposed of in the aforesaid terms, so also pending application(s), if any.