- (1.) THE only point involved in this case is with respect to the liability of the Insurance Company- Appellant to pay the award amount under Section 140 of the Motor Vehicles Act 1988. We have heard learned counsel for the parties and perused the file and find that the appellant-Insurance Company had in clear and categorical term informed the Tribunal that in the absence of policy particulars it was not in a position to admit or deny the factum of insurance. In the absence of such stand of the appellant it was incumbent upon the Tribunal to have compelled the owner of the vehicle to furnish the policy particulars so that the appellant could have admitted or denied the factum of insurance. The Tribunal did not do so. The owner did not furnish the policy particulars. An Insurance Company, merely by the fact of its impleadment as a respondent in a claim petition can not be fastened with the liability of satisfying the award because the sine quo non of the liability of an insurer to pay the award amount is the undisputed fact of the vehicle involved in the accident being insured with it as on date of the accident. Unless either the Insurance Company admits the factum of insurance or the Tribunal, on the basis of the material on record, categorically returns its finding that the vehicle involved in the accident was insured with the impleaded Insurance Company liability cannot be fastened to pay the award amount. Section 147 of Motor Vehicles Act, 1988 reads thus :-- "Section 147. Requirements of policies and limits of liability.--(1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which.- (a) is issued by a person who is an authorized insurer; and (b) insures the person or classes of persons specified in the policy to the extent specified in Sub-section (2). ..... (2) Subject to the proviso to Sub-section (1), a policy of insurance referred to in Sub-section (1), shall cover any liability incurred in respect of any accident upto the following limits, namely; (a) save as provided in Clause (b), the amount of liability incurred; (b) in respect of damage to any property of a third party, a limit of rupees six thousand; Provided that any policy of insurance issued with any limit and in force, immediately before the commencement of this Act, shall continue to be effective for a period of four months after such commencement or till the date of expiry of such policy whichever is earlier, (3) A policy shall be of no effect for the purposes of this Chapter unless and until there is issued by the insurer in favour of the person by whom the policy is effected a certificate of insurance in the prescribed form and containing the prescribed particulars of any condition subject to which the policy is issued and of any other prescribed matters; and different forms, particulars and matter may be prescribed in different cases. (4) ............................ (5) Notwithstanding anything contained in any law for the time being in force, an insurer issuing a policy of insurance under this section shall be liable to indemnify the person or classes of persons in the policy in respect of any liability which the policy purports to cover in the case of that person or these classes of persons."
(2.) A bare reading of Section 147 stipulates that the liability to satisfy the award itself rests with the insurer but the liability comes into operation only when the factum of the vehicle being insured with, the impleaded Insurance Company is pleaded, proved and established beyond any doubt or the insurer in the written statement filed by it before the Tribunal admits as such. In the present case insurer having not admitted the factum of insurance of the vehicle, it was not proper for the Tribunal in fastening the liability upon it to pay the award. Under the facts and circumstances, therefore, this appeal is allowed. The impugned award in so far as it directs the appellant to pay the amount of Rs. 1,25,000/- is set aside. Instead it is held that the respondent No. 4 (the owner of the vehicle) shall be liable to pay this amount to the claimants. The claimants are at liberty to take steps for realizing this amount from respondent No. 4. The amount deposited by the appellant in this Court shall be returned to the appellant by the Registry.;