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IN THE SURPEME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO(s). 682 OF 2011
(@ SLP (C) No.12743/2010)
ORIENTAL INSURANCE CO.LTD. Appellant(s)
VERSUS
DHANBAI KANJI GADHVI & ORS. Respondent(s)
O R D E R
Leave granted.
This appeal is directed against the judgment
dated 15.1.2010 rendered by the learned Single Judge of
the High Court of Gujarat at Ahmedabad in Special Civil
Application No.9400 of 2006 by which the order dated
23.12.2005 passed by the Motor Accident Claims Tribunal
(MACT) Bhuj, Kachchh in M.A.C.P. No.759/97 permitting
the respondents, who had already obtained compensation
under Section 163A of the Motor Vehicles Act 1988 (`the
Act' for short), to proceed with the application filed
under section 166 of the Motor Vehicles Act 1988, is
affirmed.
The respondents are the original claimants. On
17.6.97, the deceased viz. Kanji Keshavbhai Gadhvi was
riding his two wheeler i.e. Luna. When he reached near
IFFCO, the driver of taxi bearing No.GJ-12-C-9484 who
was coming from the opposite direction dashed the
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taxi with the Luna as result of which Kanjibhai lost his
life. Therefore, the respondents who are legal
heirs of the deceased respondent filed MACP No.759 of
1997 under Section 166 of the Motor Vehicles Act against
the driver and owner of the taxi as well as against the
petitioner who is insurer of the taxi and claimed
compensation of Rs.7,50,000/-. The respondents had
thereafter filed an application at Exhibit 6 under
section 163A of the Act and claimed compensation of Rs.
3,93,500/- on the principle of no fault liability.
The Tribunal had partly allowed the application
filed by the respondents under Section 163A of the Act
and ordered the petitioner to pay a sum of Rs.2,65,500/-
with 12% interest vide judgment dated 18.10.2000. The
case of the petitioner is that the petitioner had
deposited the said amount and the respondents have
already withdrawn and invested the amount of
compensation as directed by the Tribunal.
The present petitioner filed an application
with a prayer that the application filed under Section
166 which was pending be rejected in view of the
decision of this Court in Oriental Insurance Co. Ltd.
Vs. Hansrajbhai V. Kodala & Ors. (2001) 5 SCC 175.
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The Tribunal by order dated 25.6.2002 granted
stay of further proceedings of the petition filed under
Section 166 of the Act till further orders. In the
meanwhile, the petitioner challenged the award passed by
the Tribunal under Section 163A of the Act by filing
First Appeal No.3019 of 2007. The appeal was dismissed
on the ground of delay.
The respondents thereafter filed an application
with a prayer that they be permitted to proceed with the
petition filed under Section 166 of the Motor Vehicles
Act and they were ready to give undertaking to give
credit of the amount awarded to them as compensation in
the claim petition filed under Section 163A of the Act.
The Tribunal by an order dated 23.12.2005 permitted the
respondents to proceed with the petition filed under
Section 166 of the Act. The Tribunal also directed that
amount already disbursed in favour of the respondents
and invested by them, pursuant to the award made under
Section 163A shall be adjusted to the final award to be
passed under Section 166 of the Motor Vehicles Act.
Feeling aggrieved, the petitioner preferred
Special Civil Application No.9400 of 2006 before the
High Court.
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The learned Single judge of the High Court has
rejected the same by judgment dated 15.1.2010 giving
rise to the instant appeal.
This Court has heard the learned counsel for
the parties.
This Court has perused the impugned judgment of
the High Court. The reasons given by the High Court
for upholding permission granted by the Tribunal, to the
respondents to proceed further with the petition filed
under Section 166 of the Act, read as under.
"After hearing and on perusal of the
record and from the scheme of the Act, it
is clear that proceedings under Sections
163A and 166 of the Act i.e. both
proceedings are permissible. In my view,
claimant can file both the proceedings
and opt for either of proceedings. The
only condition is that application for
proceeding under section 166 should be
filed before the award is passed . Here,
in this case, the proceedings were filed
before the award is passed".
On consideration of the object of section 163A
of the Act which was inserted by Section 51 of the Act
54 of 1994 w.e.f. 14-11-1994, and the non-obstante
clause with which sub-section (1) of Sec. 163A
commences, it is manifest that the legislature did not
intend to prevent the claimant from getting
compensation as per the
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structured formula merely because in his original claim
petition he had prayed for compensation on the basis of
"fault liability" principle. There is no prohibition in
any provision of the Motor Vehicles Act 1988 against the
claimant praying for compensation as per the structured
formula after having filed a claim petition under
section 166 of the Act. Therefore, this Court finds
that the respondents were perfectly justified in making
an application at Exhibit 6 in MACP No.759 of 1997
which was filed under Section 166 of the Act and praying
the Tribunal to award compensation to them on the basis
of the structured formula mentioned in Section 163A of
the Act. This Court further finds that the Tribunal did
not commit any error in entertaining the said
application and awarding a sum of Rs.2,65,500/- as
compensation to the respondents under Section 136A of
the Act.
However, in Deepal Girishbhai Soni & Ors.Vs. United
India Insurance Co. Ltd., Baroda (2004) 5 SCC 385, the
question which was considered by a three Judge Bench of
this Court was whether a proceeding under Section 163A
of the Motor Vehicles Act, 1988 is a final proceeding,
by reason whereof, the claimant who has been granted
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compensation under Section 163A, is debarred from
proceeding with any further claims on the basis of fault
liability in terms of Section 166. After considering the
scheme envisaged by Section 163A of the Act, it is held
in the said case that Parliament intended to lay down a
comprehensive scheme for the purpose of grant of
adequate compensation to a section of victims who would
require the amount of compensation without fighting any
protracted litigation. What is ruled therein is that the
compensation determined and paid under Section 163A of
the Act is final and not an interim one. The clear
proposition of law which emerges from the decision of
this Court in Deepal G. Soni (supra) is that the remedy
for payment of compensation both under Sections 163A and
166 being final and independent of each other as
statutorily provided, a claimant cannot pursue his
remedies thereunder simultaneously. As explained by this
Court in the said decision, a claimant, thus, must
opt/elect to go either for a proceeding under Section
163A or under Section 166 of the Act, but not under
both.
Applying the principle laid down in Deepal Soni
(supra) to the facts of the case, it will have to be
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held that the respondents having obtained compensation,
finally determined under Section 163A of the Act are
precluded from proceeding further with the petition
filed under Section 166 of the Act. The exception
mentioned by the learned Single Judge in the impugned
judgment that a petition under Section 166 of the Act
can be proceeded further if it is filed before passing
of an award passed under Section 163A of the Act is not
supported by the scheme envisaged under Sections 163A
and 166 of the Act and is contrary to the principle of
law laid down by this Court in Deepal Soni's case.
Therefore, this Court is of the opinion that the
impugned judgment of the High Court upholding the order
passed by the Tribunal to permit the respondents to
proceed further with the petition filed under Section
166 of the Act cannot be sustained and will have to be
set aside.
For the foregoing reasons, the appeal succeeds.
The order of the Tribunal dated 23.12.2005 allowing the
respondents to proceed with the petition filed under
Section 166 of the Motor Vehicles Act, 1988 on the
certain terms and conditions mentioned therein and the
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impugned judgment of the High Court upholding order of
the Tribunal are hereby set aside.
The appeal accordingly stands disposed of
.................J.
(J.M. PANCHAL)
NEW DELHI .................J.
JANUARY 17, 2011 (H. L. GOKHALE)
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Pingback: exceeding the claim, more amount can be granted in suitable case.= amendments can also be permitted =under the MV Act, there is no restriction that the Tribunal/court cannot award compensation amount exceeding the claimed amount. The function of the Tribu - November 1, 2011
Pingback: exceeding the claim, more amount can be granted in suitable case.= amendments can also be permitted =under the MV Act, there is no restriction that the Tribunal/court cannot award compensation amount exceeding the claimed amount. The function of the Tribu - November 1, 2011