UNITED INDIA INSURANCE CO LTD Vs. SAVITABEN RANCHHODBHAI

JUDGEMENT

(1.) Challenge in this First Appeal under Section 173 of the Motor Vehicles Act, 1988 ("the Act" for short) is to the correctness of the judgment and award dated 4.7.1996 rendered in MACP No. 259 of 1993 by the MACT (Main), Bhavnagar, by which the Claim Petition preferred by Respondent Nos.1/1 to 1/6 - Original Claimants to recover the compensation of Rs.3,50,000/- on account of untimely demise of Ranchodbhai, who has died in a vehicular accident, has been allowed, and thereby claimants are awarded total compensation of Rs.3,50,000/- together with interest @ 15% per annum from the date of application till realization and proportionate cost. The award further stipulates that if the Insurance Company deposits the amount of compensation within a period of six months, the rate of interest shall be at 12% instead of 15%.

(2.) At the time of hearing of this Appeal Mr. Shakeel Qureshi, learned Advocate for the Claimants has drawn the attention of this Court to the reported decision of a Division Bench of this Court in the case of United India Insurance Company Limited v/s Hetalbhai C. Bagadia & Others, 1991 (1) GLH 539 and submitted that this Appeal preferred by the Insurance Company is not maintainable as the Insurance Company has not obtained the prior permission under Section 170 of the Act from the concerned Tribunal. He therefore submitted that this Appeal may be dismissed as not maintainable.

(3.) In counter submission Mr. Vibhuti Nanavati, learned Advocate for the Appellant - Insurance Company submitted that Section 110C read with Section 170 of the Act empowers the Tribunal to permit the Insurance Company to contest the claim when the person against whom the claim is made has failed to contest the claim. In the present case, the Driver and owner though duly served, have elected nor to remain present before the Tribunal. The Tribunal therefore permitted the Insurance Company to cross-examine the claimants on all points.