- (1.) Heard Sri Rahul Sahai, the learned counsel for the petitioner and Sri Rajesh Tripathi, the learned counsel holding the brief of Sri V.P. Mishra, the learned counsel for the petitioner.
(2.) A claim application was filed under the Motor Vehicles Act. The tribunal gave an award granting compensation to the claimants. The tribunal, in the said award, also gave a right to the insurance company to recover the amount from the owner of the vehicle in terms of Section 149(2) of the Motor Vehicles Act. The insurance company accepted the award and deposited the amount before the tribunal along with an application? praying that the amount may be recovered from the owner and that the amount may not be released to the claimants till a security is provided by the owner of the vehicle or attachment of the vehicle is not made. This application was partly allowed by issuance of notice to the owner of the vehicle but the prayer for providing security and/ or attachment of the vehicle was rejected with a further direction that the amount deposited by the insurance company could be withdrawn by the claimants. The insurance company, being aggrieved by this part of the order, has filed the present writ petition.
(3.) The learned counsel for the petitioner insurance company submitted that till such time as the interest of the petitioner is not secured, the amount deposited by the petitioner could not be released in favour of the claimants as held by the Supreme Court in the case of Oriental Insurance Company Ltd. Vs., Nanjappan and others, 2004 AIR(SC) 1630 and in the case National Insurance Company Ltd. Vs. Challa Bharathamma and others, 2004 7 JT 519, in which it was held: "Before release of the amount of the claimants, owner of the offending vehicle shall furnish security for the entire amount which the insurer will pay to the claimants. The offending behicle shall be attached, as a part of the security. If necessity arises the Executing Court shall take assistance of the concerned Regional Trnasport Authority. The Executing Court shall pass appropriate orders in accordance with law as to the manner in which the owner of the vehicle shall make payment to the insurere. In case there is any default it shall be open to the Executing Court to direct realization by disposal of the securities to be furnished or from any other property or peroperties of the owner of the vehicle i.e. the insured. In the instant case considering the quantum involved we leave it to the discretion of the insurer to decide whether it would take steps for recovery of the amount from the insured.";