Full Text
HIGH COURT OF DELHI
Date of Decision: 12th April, 2021
NATIONAL INSURANCE CO.LTD ..... Petitioner
Through Mr. Pankaj Seth, Advocate.
Through None.
NATIONAL INSURANCE CO.LTD ..... Petitioner
Through Mr. Pankaj Seth, Advocate.
Through None.
JUDGMENT
1. This hearing has been done through Video Conferencing.
2. The present two petitions have been filed challenging the impugned orders passed by the Presiding Officer, (East), Karkardooma Courts, Delhi accepting the legal offer made by the insurance company and passing an interim award in terms of the said legal offer.
3. The challenge by the Petitioner/insurance company, in the respective matters, is to the effect that Section 140 of the Motor Vehicles Act, 1988 (hereinafter, ‘the Act’) by which interim compensation could be awarded, stands deleted from the Act by virtue of the amendment brought in by the Motor Vehicles (Amendment) Act, 2019 (hereinafter, ‘the Amendment Act, 2019’). It is further submitted by Mr. Seth, ld. Counsel appearing for the insurance company that under Section 149(3) of the Act, an award in terms of the legal offer can be passed only if the said offer is accepted by the insured 2021:DHC:1314 person. He relies upon Bajaj Alliance General Insurance Co Ltd. v. Ashok Kumar & Ors., [MAC. APP. 940/2019, decided on 19th February, 2020] passed by the ld. Single Judge of this Court.
4. A perusal of the Motor Vehicle Act, 1988 shows that as per Section 140 of the unamended Act, the interim compensation could be granted in the following manner:
5. This provision has been deleted vide the Amendment Act, 2019. Insofar as Section 149(3) of the Act, contained in Chapter XI of the Act, is concerned, the same has been amended by Section 51 of the Amendment Act, 2019. The language in Section 149(3) as amended, is quite clear i.e., it is only if the Claimant, to whom the offer is made, “accepts such offers”, the settlement can be recorded by the Claims Tribunal. Section 149(3) of the Act reads as under:
6. A perusal of the order of this Court dated 19th February, 2020 relied upon by ld. Counsel, Mr. Seth also shows that the ld. Single Judge has accepted the contention made on behalf of the insurance company that there is no provision under the Act, for passing of interim award. The order of this Court dated 19th February, 2020, reads as under: “The appellant has challenged the interim award dated 04"" September, 2019 whereby the Claims Tribunal has passed interim award for Rs. 1,40,351/-. Learned counsel for the appellant urged at the time of the hearing that there is no provision in the Motor Vehicles Act for passing of an interim award for Rs. 1,40,351/-. Respondent No.l is present in Court along with his counsel and has no objection to the appeal being allowed. The appeal is allowed and the interim award dated 04^'' September, 2019 is set aside. Pending application is disposed of. The statutory amount be refunded back to the appellant. Copy of this order be given dasti to counsel for the parties under signatures of the Court Master.”
7. Under section 140 of the unamended Motor Vehicles Act, 1988, the maximum compensation that could be paid as interim compensation was a fixed amount. The amount awarded in the present case is not a fixed amount but a sum of Rs. 90,050/- in CM(M) 18/2021 and Rs. 69,810/- in CM(M) 57/2021. The question that arises is as to whether the present cases would be governed by the unamended Motor Vehicles Act, 1988 or the amended Act.
8. There is some doubt as to whether Section 149 of the amended Act is applicable to the present case as the policy is dated 18th November 2017 in both these matters, i.e. prior to the amended Act coming into force. Further Sections 50 and 51 of the Motor Vehicles (Amendment) Act, 2019, vide which chapter X of the Motor Vehicles Act was deleted and new provisions were added, also appears to not have been notified as of yet.
9. Under such circumstances, the present case would still be governed by the unamended Motor Vehicles Act, 1988. Even in the unamended Act, since the amount payable as interim compensation is a fixed amount, the passing an interim award by the Tribunal on the basis of the offer made by the Insurance Company would not be tenable.
10. Therefore, under these circumstances, the interim awards passed in both these orders are set aside. Considering the fact that the accidents took place in 2018 and the claims are pending before the MACT, it is directed that MACT shall expeditiously adjudicate the claim petitions of the Respondents/Claimants and finally dispose them off on or before 31st July, 2021.
11. The MACT would be free to also consider and grant interim compensation in terms of the unamended Act, in accordance with law, if the claimants file an application for the said purpose.Both these petitions are disposed of in the above terms. All pending applications are also disposed of.
12. Copy of this order be communicated to the Presiding Officer, (East), Karkardooma Courts, Delhi. Next dates of hearing are cancelled in these matters.
PRATHIBA M. SINGH JUDGE APRIL 12, 2021 Rahul/Ap/Ak (Corrected and released on 16th April 2021)