- (1.) Heard the learned counsel for the petitioner and the learned Standing Counsel. The petitioner is the claimant and had filed a claim application under the Motor Vehicles Act, 1988 (hereinafter referred to as the Act of 1988). The Tribunal gave an award dated 27th February, 2009 awarding compensation of Rs.55,000/- along with 6% interest per annum for a period of three years. The compensation was to be paid by the insurance company, who was given a right to recover the amount from the owner of the vehicle. Based on this award, the insurance company deposited the entire decreetal amount.
(2.) The petitioner, being the claimant, moved an application for withdrawal of the amount, which application was rejected on the ground that the owner of the vehicle had not provided security to the satisfaction of the Tribunal and, consequently, the amount cannot be released, since the interest of the insurance company was required to be protected. The Tribunal, while rejecting the application, relied upon a decision of the Supreme Court in Oriental Insurance Company Ltd. Vs. Nanjappan and others, 2004 AIR(SC) 1630 and Smt. Sheela Devi and others Vs. Additional District Judge, Court No.4, Gorakhpur, 2008 2 TAC 104). The petitioner, being aggrieved by the said order, has filed the present writ petition.
(3.) The Supreme Court in Nanjappan's case 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 vehicle shall be attached, as a part of the security. If necessity arises the Executing Court shall take assistance of the concerned Regional Transport 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 insurer. 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.";