Oriental Insurance Co. Ltd. vs Ashok and Others

Nisha Gupta, J.—This appeal has been preferred under Sec. 173 of the Motor Vehicles Act against the judgment and award dt. 16.6.2012 passed by the Judge, Motor Accident Claims Tribunal, Pali in MACT Case No. 15/2009 whereby the petition of the appellant has been allowed and the insurance company has been exonerated from the liability but at the same time, direction has been given to the insurance company to first pay the compensation awarded and then to recover it from the owner of the offending vehicle. The grievance of the present appellant is that this liberty is bad according to settled principles of law. Heard learned counsel for the petitioner and the learned counsel for the respondents at the admission stage itself.

In Kusum Lata and Others Vs. Satbir and Others, , it has been held as under:--

In respect of the dispute about licence, the Tribunal has held and, in our view rightly, that the insurance company has to pay and then may recover it from the owner of the vehicle. This Court is affirming that direction in view of the principles laid down by a three Judge Bench of this Court in the case of National Insurance Co. Ltd. Vs. Swaran Singh and Others, .

Further more in the case of National Insurance Co. Ltd. Vs. Swaran Singh and Others, , the law has been propounded on this and looking at the above, no fault can be found in the order to pay the compensation awarded and then to recover it from respondent No. 1. Hence, there is no force in the appeal and the same is hereby rejected in limine.