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Judgment
Naolekar and Tewari, JJ.—This appeal is being filed by the insurance company against the order of enhancement of compensation. A preliminary objection has been raised by the counsel for respondents that the appeal filed by the assurance company against enhancement of the awarded amount is not maintainable as the defence available to the assurance company is limited. In Shankarayya and Another Vs. United India Insurance Co. Ltd. and Another, it has been held by the Apex Court that the insurance company when impleaded as a party by the court can be permitted to contest the proceedings on merits only if the conditions precedent mentioned in Section 170 of the Motor Vehicles Act, 1988 are found to be satisfied and for that purpose the insurance company has to obtain order in writing from the Tribunal which should be a reasoned order.
Unless the procedure provided u/s 170 of the Act is followed, the insurance company cannot have a wider defence on merits than what is available to it by way of statutory defence. Thus the insurance company has no right to challenge the compensation amount.
That being the case, appeal filed by the assurance company is not maintainable and is accordingly dismissed.