Oriental Insurance Co. Ltd. vs Mehran

Muzaffar Hussain Attar, J.—Despite service, respondent No. 3 has not appeared. This Appeal is filed against the order/award dated 09-

11-2012 passed by Motor Accidents Claims Tribunal (MACT), Srinagar, on an application filed u/s. 140, Motor Vehicles Act, 1988 (for short

Act of 1988), whereunder the appellant -- Insurance Company, has been directed to pay interim compensation to the tune of Rs. 25,000/- to

respondent No. 1 -- claimant. The ground projected by the appellant -- Insurance Company is that the Cover Note, which has been placed on the

record of the Claim Petition by respondent No. 1 and which has become basis for passing of the interim award, is not genuine but fake one.

Learned counsel for the appellant submitted that before disposal of the application u/s. 140 of the Act of 1988, two applications were filed by

the appellant before the MACT and in one of the applications, it was specifically pleaded that the Cover Note is not genuine but a fake document

and under such circumstances, the appellant -- Insurance Company cannot be fastened with the liability of paying the interim compensation.

Learned counsel invited attention of the Court to the impugned interim award and submitted that the MACT has not made reference to these

applications and the documents placed on the files of the Claim Petition by the appellant -- Insurance Company. He submitted further that without

even taking a prima facie view about these documents, the interim award could not have been passed.

Learned counsel for respondent No. 1 submitted that the issue raised would require to be enquired into by the Tribunal while considering the

main Claim Petition and at this stage the appellant - Insurance Company shall have to satisfy the interim award passed by the MACT. Learned

counsel further submitted that if, ultimately, it is proved that the Cover Note is fake one, in such eventuality, direction can be issued by the MACT

for recovery of the amount from the owner of the vehicle.

Mr. Ashraf Wani, appearing on behalf of the driver of the offending vehicle, made like submissions.

The appellant -- Insurance Company, can be fastened with the liability of paying the interim compensation u/s. 140 of the Act of 1988 only

when a prima facie finding is recorded by the MACT that the documents placed on the Claim Petition are genuine, more particularly, the Cover

Note/Insurance Policy. Though the appellant -- Insurance Company has taken a specific stand that the documents are not genuine but fake, the

MACT has not referred to the applications and has not dealt with them. The impugned award, in such circumstances, cannot survive. It is the

settled position in law that a fake and fraudulent document does not confer any benefit on any party. However, prima facie, finding is to be

recorded as to whether the document is fake or not.

For the above stated reasons, this Appeal is allowed. The interim award dated 09-11-2012 passed by Motor Vehicles Claims Tribunal,

Srinagar u/s. 140 of the Motor Vehicles Act, 1988, is set aside. The matter is remitted back to the MACT, Srinagar, which will reconsider and

rehear it and after hearing the learned counsel for the parties, will pass orders in accordance with law. The award amount, deposited with the

Registry of the Court, shall be transmitted to MACT, Srinagar. Disposed of accordingly along with CMPs.