High CourtsSingle Bench(2005) 01 MP CK 0063

New India Assurance Company vs Dr. Lallu

Madhya Pradesh High Court · Decided on 27 January 2005 · Citation: (2005) 2 ACC 172

HON’BLE JUDGES
A.K. Awasthy, J

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Judgment

6 paragraphs · 394 words

A.K. Awasthy, J.—Arguments heard on the Misc. Appeal filed u/s 173 of the Motor Vehicles Act, 1988, against the order dated 30.1.1995 in Claim Case No. 48/1994 passed by learned VIth Additional Member of Motor Accident Claims Tribunal, Ujjain, wherein the appellant was ordered to pay the amount of Rs. 25,000/- as in interim compensation to the respondent No. 1-claimant.

2.

The case of the claimant is that on 29.12.1993 when the minor daughter of the claimant Kumari Poonam was going on the road near the Roadways Depot, the non-applicant No. 1 while driving the Tempo No. MPU-6026 rashly and negligently, hit her resulting in her accidental death on the spot. That the non-applicant No. 2 was the owner and non-applicant No. 3 was the insurer of the offending Tempo.

3.

The case of the Insurance Company is that the Tempo was insured by the owner of the vehicle after hiding the fact of the accident and as such the policy of the Tempo was cancelled by the Insurance Company. That on account of the cancellation of the policy, the appellant-non-applicant No. 3 is not liable to pay the amount.

4.

The claimant has filed the copy of the FIR and also the post-mortem report from which it is clear that on account of the rash and negligent driving of the Tempo, the minor daughter of the claimant has succumbed to her injuries. It is not in dispute that at the time of the accident, the vehicle was insured. The defence of the Insurance Company is that the fact of the accident was not disclosed to the company and the insurance policy was obtained by the owner fraudulently and as such the Insurance Company is not liable to pay the amount.

5.

Where prima facie case is made out, interim award of no fault liability should be provided. It is observed in the case of Rajesh Vs. Dalip and Others, that the provision u/s 140 of the Motor Vehicles Act of interim award is in nature of social justice and it is akin to common law liability. At the interim stage, in view of the Insurance policy and prima facie case, the appellant is liable to pay the interim award. The learned Tribunal has not committed any error in passing the impugned order.

6.

The appeal is without merit and it is hereby dismissed.