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Judgment
Hon. Shri Sheel Nagu, J.—Without going into the the prolixity of the arguments these cases are being decided on the short question, as agreed to by the counsel for rival parties, that whether the Tribunal was right in refusing to consider the ground of breach of policy raised by the Insurance Company as a defence raised while deciding the claim for interim compensation made by claimants u/s 140 of the Motor Vehicles Act, 1988.
After hearing the counsel for rival parties and perusing the record, it is evident that the tribunal while rendering the interim award u/s 140 of the Motor Vehicles Act has categorically refused to consider the defence of the Insurance Company that the Insurance Company is not liable even for interim compensation since the undisputed factual matrix involved indicated towards breach of policy condition to the extent of the vehicle in question having been plied without valid permit.
Admittedly, the Insurance Company is entitled to raise the question of absence of valid permit as one of it''s defence u/s 149(2)(a)(i)(c) of the Motor Vehicles Act, while opposing the claim made by the claimants u/s 166 or u/s 140 of the Motor Vehicles Act.
The above said question is no more res-integra as the it stands decided not only by the Single Bench of this Court in the case of Oriental Insurance Company Ltd. Vs. Smt. Kantidevi and Others, but also the decision rendered by the Apex Court in the case of Yallwwa (Smt.) and others Vs. National Insurance Co. Ltd. And another (207) 6 SCC 657 whereby the Apex Court in paragraph 11 has stated thus:
One of the defences available to the insurer is breach of conditions specified in the policy. When such a defence is raised, the Tribunal is required to go into the said question. Section 140 of the Act does not contemplate that an insurance company shall also be liable to deposit the amount while it has no fault (sic obligation) whatsoever in terms of sub-section (2) of Section 147 of the Act.
In view of the above, these miscellaneous appeals stand disposed of with the following directions:
Theimpugned order dated 07/01/2011 passed in Claim Case No. 21/10, Claim Case No. 14/10, Claim Case No. 15/10, Claim Case No. 11/10, Claim Case No. 12/10, Claim Case No. 13/10, Claim Case No. 23/10, Claim Case No. 03/10 & Claim Case No. 20/10, is set aside.
The tribunal is directed to reconsider the defence raised by Insurance Company opposing the application u/s 140 of the Motor Vehicles Act of breach of policy condition in as much as, the offending vehicle being used without valid permit, after affording due and sufficient opportunity to all the parties concerned.
The Insurance Company is entitled to refund of the amount of interim compensation if deposited.
The above said exercise be completed as expeditiously as possible.
No order as to costs.
Certified copy as per rules.