Sudhakar Pednekar vs Mrs. Emiliana De Silva Britto and others

Dr. G.F. Couto, J.—At the hearing of this appeal against the order dated December 11, 1986, passed by the learned Presiding Officer of the Motor Accidents Claims Tribunal, Mr. Mulgaokar, learned counsel appearing for the fifth respondent-insurance company, stated that the insurance company will deposit in the Claims Tribunal the amount of Rs. 15,000 u/s 92A of the Motor Vehicles Act, 1939, within three weeks from today reserving, however, its right to agitate the question that there is no liability on its part under the insurance policy.

In view of the above statement made by Mr. Mulgaokar, Mr. Kakodkar, appearing on behalf of the appellant, stated that the present appeal may be disposed of bearing in mind the aforesaid concession on behalf of the insurance company and accordingly, the impugned order be set aside.

By the impugned order, learned Presiding Officer of the Claims Tribunal had held that there was no liability of the insurance company as the payment of the premium had been effected on March 17 1986, and, therefore, the vehicle involved in the accident was insured only from that date. The accident took place on March 13, and, therefore, when the insurance policy was not in existence. Accordingly, he ordered that the payment of the sum of Rs. 15,000 u/s 92A of the Motor Vehicles Act be made only by the present appellant in his capacity as owner of the vehicle.

Section 92A of the Motor Vehicles Act deals with liability without any fault. Insurance of vehicles is compulsory and the aforesaid provision of law as can be seen from the Statement of Objects and Reasons was introduced in order to give quick relief to the victims of an accident or to their heirs. Therefore, it is for the insurance company to make the payment without prejudice, however, to the defence which are available to it under the same Act. No doubt, if there is a question as to the date from which the insurance policy becomes effective as it happens in the present case, the said question is to be determined at the time of the passing of the final judgment or award. If the insurance company is not liable, then an order should be passed by the Tribunal directing the owner of the vehicle to refund the said money to the insurance company.

Thus, in view of the above statement made by Mr. Mulgaokar and for the reasons given above, this appeal is allowed and consequently, the impugned order dated December 11, 1986, is set aside. The insurance company is directed to deposit within three weeks from today the said amount of Rs. 15,000 in the Claims Tribunal. The claimants are at liberty to withdraw the said amount once deposited. This is naturally without prejudice to the rights of the insurance company to agitate the question of its liability to pay compensation on account of the accident. There will be no order as to costs in the circumstances of the case.