Karnataka High Court
Bajaj Allianz General Insurance Co Ltd vs Madhava Nair S/O Late Neelakartha on 23 April, 2010
Equivalent citations: AIR 2011 KARNATAKA 15, 2010 (3) AIR KANT HCR 583, 2011 AAC 143 (KAR), (2012) 2 ACJ 745, (2012) 4 ACJ 173, (2011) 1 KANT LJ 77, (2013) 3 TAC 214, (2010) 4 KCCR 2820, (2013) 4 ACC 104, 2012 (2) KLT SN 101 (KAR)
Author: N.Kumar
Bench: N.Kumar
if '\E .
53:3?
fl._,:f"""""""*
"R
K
'*1
9;,
'*3
M.
f'
y IN THE HIGH COURT OF KARNATAKA AT
Dated this the 23rd day of V
BEFORE'
THE HON'BLE
Writ Petitiovr1'«-].\zT:0. A121:s2vV'§'1*V--2j00s .{G1VI--AC)
Writ Pe_ti.ti011_No:§. 12'133.oi'~2'008'; 12134 of 2008;
12135 of 2008- 12.1-3§»_.o£2008 ; _1 2.1370-f"2008 ; 12548 of 2008
Writ P¢§i:iti01'_iT'I~€0.. §fV.2v00_8 _1!C}"M--Ac)
BETWEE§;;4_ ' * "
Baj aj A11iaVf1z.2IVns-ufanéc :Co'::Ltd.,
Head; Office, GD' Plaza, Airport Road
V. 0' Ak1_1fi71i,VPune -- 4-1120.75
V "By Regi"0Kna1%'Qffice
'Baj'ajVAklvianzaifisurance Co. Ltd.,
---.N0..;3 1; G1" ~0.u;1d Floor, TBR Towers
"Sr. executive Smt. Githa Raj
15? Cross; N§:w'2IMissi0n Road
Baragalore e 560 025
Repr'ese'"n ted by its
.. Petitioner
1'/,
[By Sri O Mahesh, Advocate}
NJ
Madhava Nair
Aged 60 years
S/o late Neeiakartha
R/a No.12, III Main
Paramahansa Road
Yadavagiri
Mysore --- 570 020
Raglan, aged 23 years '
S / o Madegowda
Press Reporter
Projhodaya Paper:
Hassan
{Rider of M / C}
Ramegowda, vMajQ'rH H
S/o Boregoéfda, _
R/a
11 1\/Iain,t VI5t;ttrappa'Compo11nd
Pa.ntharapa1'ya«,. My_s'ore Road
Bangaiore '--=58O'O3'9_ '
{Ownde1.'.--Ir1sVLn'ved A of IVE'/C]
._': Permanenhbok Adalat
Court" Premises, Mysore
A " --. . I-By Chairman
.. Respondents
V R M N Urnashankar, Advocate for R4:
R1 to R3 are served)
Writ Petition is filed under Articles 226 and 227 of
..thepCuonstitution of India, praying to quash the order dated 30-
* '' 0722008 by the respondent-6 Court of the Permanent Lok
_V Adalat, Mysore, in PLAP No.09/2008, and produced and
% rriarked as Annexure-C.
L/..
3
Writ Petition No. 12133 of 2008 (GM~AC}
BETWEEN:
Bajaj Aiiianz Insurance Co. Ltd,
Head Office, GD Plaza, Airport Road
Akurdi, Pune -- 411 075
By Regional Office
Bajaj Aflianz insurance Co. Ltd,
No.31, Ground Fioor, TBR Towers
15' Cross, New Mission Road
Bangalore -- 560 025
Represented by its "
Sr. Legal executive Smt. Githa
..'.'.Petitionf1er
(By Sr Mahegahg Advoicate)
AND:
E Smt.VNeejI_a§:_o.ma ' _
Aged _4V6Vtyear.:A=_ * _ ._
W/0 KriShna1'r;u1'thjyt_ _ --
R/a=D. No.*i"1_1", .1I"Ma:n '
6"~ Cross,' B.M,' Vshree" Nagar
Myéoreét _ V' 1
2 is B Ku:fi;ar_,VVV
. . . . . .. '
_, /o. Esoraiah
_ " a.RV',"«o Thonnur
; Panidavatpura Taluk
V Man(:iya'iDistn'ct
Rajkumar, Major
., S/"0 Nanjundaiah
V "~.N0.437. Behind Bhajane Mane
0' E. Hesaraghatta
Bangalore -560 088 h/
4 The Permanent Lok Adalat
Court Premises, Mysore
By its Chairman
{By Sri M N Umashankafé, Adxrocfate, i is
R1 to R3 are s'e1V've.(i)A'
This Writ Petition is fi1ed un_der A3:ticEesv-226 'ai1d'V227 or
the Constitution of India, prayingeto quash-th'e'orde_r dated 30--
G7~2GO8 by the respondentwfi---Courtaof t11e~vI~?e1f:.:ia11ez1t
Adalat, Mysore, in No.34/-2oo8,~--_ and produced and
marked as Annexure~«C. '
Writ Petition No. :12_i34iA¢f'2eb;3 '{'o1$§-AC} it
BETWEEN: H , ,
Baj aj A11ianz"'Ins'u1'"anee Ltd...,... . .
Head Office;'G.1f3_VP1a£Z4a, .A:'rp'ort Road
AkurdiV;._Pu.ne .-- 4i3"}.,O'75 ' -
By Regio~:1a1~Office'* b ._
Bajaj Allianz insurance Co';;Ltd.,
No.31, _Groui1d Floor, "FER Towers
13* Ci}0$S',. New Mission Road
' _Banga1o_re -»..560 025 "" " 'V
Represented by its
_ Sr. _Lega1._eXe'e1;ti1{e Smt. Githa Raj ...Petitioner
';...;.a
{By Sri O Mahesh, Advocate}
; L" ~.. Venkatesh
.fAged 48 years
S / o Honnegowda
Agriculturist
Kallehalli Viiiage
J ayapura Post
Mysore Taiuk 8: District
2 N. Suresh, aged 31 years
S/o Shivappa
R/a D.No.1 130, T.K. Layout
Janatha Nagar
Mysore
CD
R. Yogesha
Aged 26 years
S/o Ramegowda "
R/at No.41, KaI1eha1liVi1y1a.ge'v._
Jayapura Hobli _ .,
Mysore Taluk and"D'1strict }
4 The Permaiient 2 2
Court Prerm'.Vses, 1V_[ysorr.=29 ..
By 1ts Cha11?'{rnan., I _V jig V ...Respondents
Y N : U:né--stig1nkar, Advocate for R4;
» t'o_R3 are served)
5 This V\/;r1t Petition is fiied under Articles 226 and 227 of
v t1'1e,_"C'7onstit1;tion ofvI..r.u:1i'a, praying to quash the order dated 30-
"O.7y--2008 "the respondentw4 Court of the 'Permanent Lok
Adtal-at,~.__Myso1'ei._ in FLAP No.35/2008, and produced and
* -marked as .Ar3i1eXure--C.
-V Writ4"PetiVtto.r1fiV1\¥o. 12135 of 2008 [G1VI--AC}
Baj»aj.'AAl1ianz Insurance Co. Ltd.,
" __ Head Office, GD Plaza, Airport Road
2' ...Akurdi, Pune -- 41 1 075
By Regional Office
Bajaj Allianz Insurance Co. Ltd.,
No.3}, Ground Fioor, TBR Towers
15* Cross, New Mission Road
Bangalore -- 560 025
Represented by its -- y '- . y_ 2.
Sr. Legal Executive Smt. Githa Raj ...Peti_ti_oner_';- 2-
(By Sri O Mahesh, Advocate} V
1 Dinesh
Aged 31 years
S/o T C Radhakrishna
R/at No. 838/A, 339/A '
Vinaya Marga, Ilvstage
Siddartha Layout ' '
Mysore "
2 C B.GaIIieSh..Kuma.r"~....__ -- '
S/o=.C S Bhavani Shankar
R/ at 1130.838/'.A, ' 8397A
; 'Vinaya Marga, II stage
' ' Siiddartha Lagrmrt
Mysore. y_ ._
V 'meV..?e%<i1:.érhent Lok Adalat
. Cour}; --jPremises, Mysore
By'its,Chainnan ...Respondents
" ti' (By Sri M N Umashankar, Advocate for R3;
R1 and R2 are served)
M This Writ Petition is flied under Articies 226 and 227 of
Constitution of India, praying to quash the order dated
L
4 Swaminatha
Aged 56 years
S/o Dasaiah
Respondents 1 to 4 are all
Chikkabeeranhalli Village
8: Post, Belikere Hobli
Hunsur Taluk
Mysore District
5 G S Prakas
Aged 43 years __ _ 5
S/0 G B Deeregowdzrr * ,
R/0 Gandhanahalli 8: Post 1
K R Nagar_Ta_1uk '
Mysore
6 The a¢m§aaea:arLakaaata1ata
Court ??é*7"??¢$~ Mysore
Byits"C11J,ainr1:a11 _ _ ...Respondents
SQ Atstsoetlates, Advocate for R1 to R4;
Sri M'.N"Um.ashankar, Advocate for R6;
* ' served} -
Writ "15'e'ti--tio1'1 is filed under Articles 226 and 227 of
"the V"Con9.tit1_dition of India, praying to quash the order dated 30--
'Qa7~'2a0D8y' 'by«.the_ respondent~6 Court of the Permanent Lok
'--Ada1at.--.Mysoifex' in PLAP No.50/2008, and produced and
riiarked as }Lf1rieXure--C.
'av_yWrit'Pet'it3'on'No. 12137 of2008 {GM--AC)
' " ' A xBE2T\flJVEVEN:
dd £3.ajaj':A11ianz Insurance Co. Ltd.,
Head Office, GD Plaza, Airport Road
LL/..
Akurdi, Pune -- 411 075
By Regional Office
Bajaj Allianz Insurance Co. Ltd.,
No.31, Ground Floor, TBR Towers
13' Cross, New Mission Road
Bangalore -- 560 025 1
Represented by its
Sr. Legal Executive Smt. Githasflaj ._
(By Sri 0 'Ac_1voeate)]
1 Smt. Gowramma _ .
Aged 41 years *
W/0 PuttaSwé.mygowdaV~'V
2 Putta:swa.fi1ygVoVJda'"ff V :
Agéd 21 asyeasrs I A " "
S1/0 late f3?£ari"g5f0'91rda . «V
3 l;0.kesh,V "yefai-'s: 2
S /oVV.PuttasWa1én.ygQWda
¢ are lKe1l_i1"rV Village
" and Post, Pe1'ia.patna Taluk
MjZSOI€« ll23istr1'ct
'1P1.ittasuiaIr1yg0wda
. Agedfi lfyears
S/'O Karigowda
R'/A9 Kellur Village
A and Post, Ravancloor Hobli
A Periapatna Taluk
* . H Mysore District
Cl'!
11
Anitha, d/o Rajaiah @ Raju
Now aged about 18 years
Sunitha '
D/o Rajaiah @ Raju
Now aged about 16 years 7
Ravi, s/o Rajaiah @ Raju
Now aged about 14 years.__ "
Kalamma .
W/ o late Laxmaia__h'*-._ _
Aged about 60 years '
Respondent Nos. 4{h.erei:'12. _si11'ee. '
Minor repmsented by theirnati1ra1Vguardian/
Mother the i'§1.%¥-.'_Responden;t herein.
A11are/0"*Afi1i§14ppé.Viid1&#ge«d .1.
Chi1kundaPcist _'
I:9[_unsurV*I'al:1.1_»:"r _ d
S / 0 An--y'ash--'phonotrok
; Now aged about 33 years
" R/a T.D.L. 'Cow-operative
Society « Quarters, Bylukuppe
1V*i.11age.and Post
A Perfi-avpat11a"Ta1uk
._ Tenziré~"Namdak
Son of Yeshi Tharchin
Aged about 33 years
" R/a D.No.20. F.T.C.I. Ltd,
13"" Cross, Pebinvilla House
Aanepalya, Audugodi Post
Bangalore 5676 030 ...Respondents
V .
(By Sri Krishna Murthy, D , Advocate for R6
R1, 2 and 5 served; R3 and R4 are minors), - 0. .,,
This Writ Petition is filed under Articles "226 and' .'22?_fof'
the Constitution of India, praying to pass appvropriatne 'writ or
order or injunction against the per1nai1ent'..Lo.k _Adalat=C1uash T
the order dated 30-07-2008, as pe1=.A_Annexjure¢D-.passed__in:FLA '
No.54/2008 by the permanent Lok Adalati Mysore: . «.
Writ Petition No. 12616 of 20o8""{,c§'M--Ac) . V
BETWEEN:
ICICI Lombard General Insuiraizee. «}
[Motor Insurance) Company I_,Vt(}.V_,
Mythri Arcade, Kantraj .
Saraswathipui'iarn;. _Mysc:';._1-e g ~ A ' u
Now represented its" __ " 0'
Manager -- Legal", 0 J i
ICICI LornbardaVGI{2:_LVtd..,,"' _ * "
# 89, I1"'F1oor,..sVR C;o'1n_p1e§:
Hosur Main Road '
Madiwala 0' ~ h
Bangalore -- 0' ...Petitioner
{By Sri A N Krishna Swamy, Advocate]
1 A Sn1t..d37othi
W"/Io Iate Ramaswamy @ Rarnu
Now aged about 25 years
it 0 ' 2' V . _ _:n.--'Annapoorneshwari
D/ o late Rarnaswarny @ Raju
Now aged about 4 years L
Kishan
S / o late Ramaswamy @ Raju
Now aged about 2 years
Respondents No.2 & 3 herein since _. __
minors reptd by their natural guardian/
mother the 15* respondent herein " * '
Smt. Shreemathi
W/ o Ramachandrasetty V
KT .-"1- I1 rem,-3
vrnru -.-..-'.
_ .-.1-..-.....+ ED : .
LVUW QSCU. (13JUU.L uJU _yCd.£b .
Ramachandrashetty
S/ o late Thimrniahsetty _ --
Now aged about €Q_jrfear--s . V" "
Chandra
8/ o Ramacha..ndraA Shetty
Now aged about 314 years
All 1'/_0"PJi'anjap;Vur'aVillage if '
Kasaba Ir-{_o'io'1i
I5harInap11riTFost V. 3' V
Hunsur Talukt' ,. 3
...Respondents
.3 Krishna Murthy D for R8;
E 4, 5;' &.E-..are served; R2 and R3 midnors)
A ' -Petition is filed under Articles 226 and 227 of
Cpons:tituti:on--*'of India, praying to pass appropriate writ or
order or injxunoction against the Permanent Lok Adalat quashing
the"-«orderdated 30-07-2008 as per A,nnexure--D passed in PLA
f No.59/20.308 by the Permanent Lok Adalat, Mysore.
\\/
before the Permanent Lok Adalat, Mysore, alleging that
t/
14
All these Writ Petitions coming on for further hearing this
day, the Court made the following:
ORDER
The petitioners who are the Insurance Coinptanies. "in all"
these writ petitions are challenging the A.jurisdiction'V:'o._f_ Permanent Lok Adalats to entertain and 'adjud.icatc»:.the _:c1ai1n_T 2 petitions under the Motor Vehicie's'p:A2t, againstfthem by the "third parties", ie, a persoi.e who is 'party to the Contract of Insurance.
2. ForVhasproper--a.:_app1*eciation of the legal issues involved case;'.'.t11ei"'_.'tfactua1 background is of utmost irnporttiance. There.fore, the facts in one of these petitions is set 'r_ down as _Vhereu'n.der:
._ :'pevtitio'1'ier in Writ Petition No.12548 of 2008 is the _ insurer carrying on business as contemplated under the institrance' "Act, 1938. Respondents 1 to 5 instituted a claim they are the wife, children and mother of one Rajaiaihii That, on 4.3.2008 at about 5.45 PM the said was proceeding on his bicycle on Iiu'r1sur~i}'eriya1;atnavxxiain road. The driver of the Vehicle bea'ring7'.'_ANo. drove the Vehicle in a rash anti-negligenvt manner ~dashed* 0 against the bicycie 'wE1ich_.resu1tes:i----in'Lvinj'u;"ies to Q? Raju and he succumbed to t1ieV:«'inj1i--ri§S::. pf Rs.9,45,000/-- was claimed as _con1pens'ation. Lok Adalat, Mysore, registereg 2008 and caused a notice onthe it to answer the said claim. The '1"i1ed.0_a1=.--. __application under Section 2213, C and D of Act, 1987 for rejection of thegjciaim petitionias not maintainable before the Permanent said request was rejected. Aggrieved by the Asaid?'_Qrt1er}*tVhefpetitioner is before this Court seeking quashing of the or;_:ier::c:iated 30.7.2008 over--m1ing the objections of the 0' " 3 f' -- .. V' "petietioner. 1' 16
3. The petitioner contends that, the Legal Services Authorities Act, 1987 (hereinafter for short referred..te.l:ag§"'ppst;i3p Act') was enacted to constitute Legal Services__"u V' provide for free and competent 1egalM"service«s top section of the society and to Vensulre securing justice are not denied'v--vi:tow--,anyl. of economic or other disabilities and jtlojorganizellokrtiildalats to secure the operation of promotes justice on a basis of was inserted by Act 32/2002 for conciliation and settlement. is -not applicable to the claims under the provisions as the award passed by the V Perrnazp-ient. Adalat final. The Permanent Lok Adalat by passing i_rrip_ugned order has assumed jurisdiction. It has p'roce'ededvlTcri assumption that the policy of insurance V V" procured the owner of a motor vehicle and the service also ' incltlde a claim made by the beneficiary under a policy of _in-surance procured by the insured. The Permanent Lok Adalat
-.proceeds to hold that the Apex Court in the case of United India Insurance Co. Ltd., vs Ajay Sinha &; another, re:port.ed. CDJ 2008 sc 996 has not laid down any .
Therefore, the petitioner has preferred' "
challenging the impugned order.
respondents entered appearance. _V
4. Learned counsel forttheepetitioners contended that, though insurance service utility services, the Permanent I;or:'gA{da.lat can of cases by any party to a party to the insurance contract;__ A personaVvJho~_is~----__not a party to such insurance 'contract cannot I1'l'L'r;'..iI1.tEVJ.A'i11 dispute before the Permanent Lok _ Adalatgj under Se"cti_on'22v'of the Act. Conversely, the Permanent no jurisdiction to entertain a dispute at the Ai"ns_ta'nc1e~-.fifla fparty who is not a party to the contract. _ 'I'l:1er"e'fore_," 'they submit that the motor accident claims are Voutsideztvhe purview of the Permanent Lok Adalat as a claim _i;nd~er..lA"Section 165 of the MV Act arises upon the claim for V CQrnpensation in respect of accidents involving the death of or jl/_.
18 bodily injury to persons arising out of the usage Vehicles or damages to any property of a third or death. Secondly it was contended thatgi. comprehensive machinery is providedlunderl the ' _ Act to entertain and adjudicate _claj1A1.is._o1" the" V f Pernanent ' ".':--« .Ad-"---'ft tol'-erliertain and adjudicate such claims is::AsVis clear from the language employedin Sectiorx be passed by 81 PeI'maI1eI1t__Lf;'l<4_'Pitllal.at' 'whereas awards passed by the thus it was not in the «vlfiarliament when it enacted Section 22--C of to conIcr."'jurilsdiction of the Permanent L01; V Ada1at;jltog..enterta.iVn Vclaiins under Section 165 of the Motor lV.eh_i_clcs '*'._I_he main crux of Section 22-C is conciliation. the conciliation fails, it has been conferred the F016: st"adjudicator. More over, the object of constituting :Pcrrnane11t;Lok Adalat is to have preslitigation stage and most oEVth.e_..lpetty cases, which ought not to go to the regular Courts could be settled at the pre--1itigat1'on stage itself.' Therefore the 11/.
said provision do not confer power on the Penrianentfifiok Adalat to entertain the claim petition.
5. Per contra. the learned lgounsefl respondents submitted that the very "'object"u'i-of "ier liyiiere the party has approached "of dispute and if the said resolution not made to approach the of their claims.
When once the Word 'public utility services':;__ hayinVgf1*'egaprd __object with which the main Act is enacted as'=xtIel1 as the the Courts should give widerpandipliberai .rinterpré:tation so as to confer the jurisdiction Adalat to decide the said disputes. The words to a dispute' cannot be construed as to include oniy.the parties to the contract. The word used is 'any ' to. dispute' and not 'to contract'. Therefore, any party to a ypldispiitre can put forth a claim if his claim is not decided on the l/ ground that the insurance service is not extended to hin1..»j'I'he Permanent Lok Adaiat gets jurisdiction to decide ~
6. Therefore the point that ;1'rise'for eon.sidVevrationT«isE43 Whether the Pemdicifcent jurisdiction to entertain claim!' ...¢Liider tithe provisions of the Is/iotor by crperson who is not a Insurance, under Section 22:0. _ iqf -. the" Services Authorities
7. " V' InVor'de_rV to'--ans_\fife«r""'this question, it is necessary to know the meaningatof thedtword Lok Adalat, its origin, and . °groWt1'i'ini'oui*..countrjf'and the provisions contained in the Act. =.__V'=I_;o1;{'Ada3at is a Hindi Word. It means "People's Court"; ~VIn-§:':_Ada1ats were being constituted at various places [in the for the disposal of a large number of case V' ".fe>iped.itious1y and with Iesser costs in a summary way and L./.
21 through the process of arbitration and settlement parties. It Was functioning as a voluntary an..:j"'conci'1-iatoV:"y agency without any statutory backingifory Aits.'_'decisi.onsV§' Itjwas V proved to be popular in providing for "speedier. psyste'rn.A"of administration of justice. In x;a'_¢'w._ of its pg1'oxxfing"~popularity,"VV a . _sta,tutory' '§£).ELt3:i£i,tig to this was a demand f'i' providing Here _ institution and the awards It was felt that such a statutory su.pport:.wovu1:d the burden of arrears of work also take justice to the doorsteps--V..oi5:-.th_:e iineedy and make justice quicker and less _ 'A ' _ '
9. 4;' " Article of the Constitution provides that the State. secure the operation of the legal system which pi*on'1Jotes'v a basis of equal opportunity, and shall, in l particulaig' provide free legal aid, by suitable legislation or ().'§';il'1 any other way, to ensure that opportunities for [securing justice are not denied to any citizen by reason of 'economic or other disabilities. The Parliament, to constitute V. legal services authorities, to provide free and competentiegal services to the weaker sections of the society, to:---ensure' opportunity for securing justice are notdenied iayu it reason of economic or other disabi1i'ties§_"jandSoto Adalats to secure that the 'opeijation'v- of Vjjsysteirxdi promotes justice on a basis of eduai opportuinitjz en§.ac'ted the Legal Services Authoritiesfict.' it it
10. The ixdalatsi under the Act at Section 2051).: 'in V S S I H _ jjjtzixjiifaiat :means a Lok~AdaIat organised undér.'chc1'ptéi' VI. "
1 1. _ . _ Criajfjter..VIAof tiie Act deals with Lok Adalats. Sub~ 215-1.) «to sub'é"s'ecVtion (4) of Section 19 deals with Adalats, the constitution of Lok Adalats, qualification of persons constituting the Lok aéidalatsz ffifie Lok Adalat has jurisdiction to determine and to L 23 arrive at a compromise or settlement between the parties to a dispute in respect of two types of cases: I (1) In cases pending before any Court ' the Lok Adalat is authorized.
{2} Any matter which is I witf1.in'~ the' jurisdiction and brought Court.
12. Therefore, the are nothing but pre-iitigation cases, "_~i.e. idisputesjivhiehh are yet to reach the Court. :'£f_I0\?t_'t':"»'(:VI'V,V'!ifI:"-; shall have no jurisdiction in respect of vcase'°.or.-- Ciniatter relating to an offence not _ compcgundable any law. Broadly speaking these Lok Pidralats fiaVe_vd:been conferred jurisdiction to resolve any matter fvirhicfh pending in the Court or which may be brought C if _ before. the Court except cases or matters relating to an offence if H ' «. yeompoundable under any law.
24
13. In so far as first category of cafes are concerned, Section 20 of the Act deals with cognizance of casesV_byf7Lok Adalats. In so far as cases which are already _ if the parties thereof agree or onepflofb the as application to the Court requesting,_for:---reference Adalats or even in the a'IL)SE31'1C€3'V(Jaf_ uan3«zV . Court is satisfied that the matteris: an approfpriatevgone to be taken cognisance by the "Court refer the case to the Adalatcl making such reference, the particsfhtaifie to be heard; "Once such matters are referredhto --_Lol{ "'Adalats',"vi»the__ L-olti Adalats get jurisdiction to proceed to "dispose of .the:"'ca§é and arrive at a compromise or settlement betweenxthe parties. If no award is made by the Lok Adalat oriiithedground that no compromise or settlement could be het'ween the parties, the record of the case shall C if _ be return'ed~.by it to the Court from which the reference has jbeewn received for disposal in accordance with law. After the are received by the Court, the Court shall proceed to iv x} if fizorripromise or settlement could be arrived at between the 25 deal with such case from the stage which was reached before such reference under sub--section (1) of Section of V'
14. In so far as second category of i:e.«,Xany ' matter which is falling within the of--.an,ci"
brought before any Court is conclernedrxany'one.:0f..the'partieS" i may make an application -- Q1' Nfiommittee organizing the Lok Adalatunder 1} of Section 19. On receipt of such"app1icaiio11;;th_e Committee may refer such ngatter to_--:Lovl§"AdaolatgforV determination. However, before suchreferencégfareasonable' opportunity of being heard to the other party beyplgivegaa. On receipt of such reference, the Lok Adaflat sha_l1, vyi1_ile~~-- 'determining the reference before it "'~._act .__ut.1fn0st "expedition to arrive at a compromise or the parties and shall be guided by the principles equity, fair play and other legal principles. 'elf no aWa1*d made by the Lok Adalat on the ground that no 26 parties, the Lok Adalat shall advise the parties to before the Court.
15. Every award of the Lok be a decree of a Civil Court or, asjthe case.__may 'be,7afi"'orticr of "
any ether "curt. Evei-'y' award ;mar.'1.€:--.by._a Lok'Atiai.at shall be final and binding on allkthe parties to.?_the~ dispute, and no appeal shall lie to any Cont'-tVagains't.V:the avuafd.
16. V ____ __It We have to appreciate Chapter3__VI;-A bvtzrieaiiiig ___ pr-e--1itigation conciliation and settlement 'wtlich "wast into the Act by way of V Amentifnent Act" No.37/V2002. The statement of objects and reasons of th_is"a_mendme11t is as under: -- ' _ "SfI'i'\_'£'I*§MENT or OBJECTS AND REASONS V. Legal Services Authorities Act, 1987 was eilcicteci to constitute legal services authorities for * providing free and competent legal services to the weaker sections of the society to ensure that L/.
2?
opportunities for securing justice were not denied any citizen by reason of economic or_.§'_''oti"t~ejf---..,__'' ;. disabilities and to organize Lok AdalatS.,?0'V_\'%£nsure that the operation of the legai"'system justice on a basis of equal oppo:'turiityt'iV The 76 ' of Lok Adalai, which is Vaninnovative mcchariisim for alternate dispute resolution, proved effective for resolving dz'sp.uytes"~~..yin aa'spiri.t': of conciliation outside "the co'urts; 1 a V a
2. _H.9y)ever,3; in the exzsting.--tscheirie'. of organiz(i'tic3n of . the Lok Adalats under Vchaptgr Vi of,thte' said Act is that the system Of based on compromise or settlement -beiiveeri.._the4 parties. if the parties do not at .any lhcornpromise or settlement, the is either returned to the court of law or the V" are advised to seek remedy in a court of it "l(li;i£.y_"l causes unnecessary delay in the of justice. if Lok Adalats are given poiver'-.to decide the cases on merits in case parties failto arrive at any compromise or settlement, this A «problem can be tackled to a great extent. Further, the cases which arise in relation to public utility services such as Mahanagar Telephone Nigam Ii//.
Limited, Delhi Vidgut Board, eta, need to be settled urgently so that people get justice withoutdelay even at pre~litigation stage and thus most" 'M petty cases which ought not to~go_in the courts would be settled at the',pre_-vlitigatiionA.stage it itself which would result in reducing = the ulofykload t of the regular courts to 'a_:'great "exter:.t.g therefore, proposed to Legal' Serviees Authorities Act, to-fset. Vt'up__'»l?l5ermanent Lok Adalats for providing: co'frri'pulso_ryAA.';pre--linyative rnechanisrnjo:'._conciliatioi§i ahdVl'settle:'nent of cases relating ;public._ utility: services». b V' 1" features of proposed legislation are «a's.follo:tv.s:¢-
" ton "pr_ovVidev' for the establishment of Permanentmlvok Adalats which shall consist _ Chairman who is or has been a district or additional district judge or has held V' juélicial office higher in rank than that of the district judge and two other persons having adequate experience in public utility services; L, 29
(ii) the Permanent Lok Adalat shall exercise jurisdiction in respect of one or more public-
utility services such as transport servicessof passengers or goods by air, road and _Ll3ater._' -- _;. postal, telegraph or telephone H_ser.'.u.ices; supply Qfpower, light ofwater to, thgllfifilélié by any establishment, public,'_corlsewan(5y orfl. sanitation, senjicesa in", "iospttdsgv or . dispensaries; and insurance ser:2ices:_.'.=
(iii) the pecuniary. Permanent Lok Acialat shall' be tip to --tupees__ten lakhs. Houneiwerg. the _,Cent7:al~.l"_!}Vovernnient may the pecuniary jurisdiction from time to 'time.' "sh.cdl have not jurisdiction in reuspect fnatter relating to an offence not cotnpoundable under any law;
' ._(iv.,P_*,it.,:V'also provides that before the dispute is before any court, any party to the , . dispute may make an application to the Permanent Lok Adalat for settlement of the dispute:
30
(v) where it appears to the Adaiat that there exist elenzentsfhofé, is settlement, which may be acceptable: = parties, it shail forntzxlntet ternijs. j possible settlement and the'm_A.to.t the parties for their ob:ier'L!gttions' parties reach an _ Lok Adalat vshqll to-;i_)&ard tetrrzs thereof. In tiispute fail to reach ,_an agreemen't--,. _ Lok Adc;icii'gs'§'ialiigdecitife on merits;
(vii by the Permanent Lok A 'Adciiot and binding on all the vtjaqftiestththeretoioiitd shall be by a majority of " the petsons ironsiituting the Permanent Lok A_dglat_. « . .....
Bill seeks to achieve the above o'tjeCts.
,4 .
at _ E This Chapter is a seif contained code. It exclusiveiy with pre--Iitigation conciliation and settlement, V 11nder{:-"
3% constitution of Permanent Lek Adalats, cognizance of ceases by Permanent Lok Adalat, procedure of Permanent awards of Permanent Lek Adalat. The Lok _« V' under Section 19 is of a temporary those.
are organized at such intervals and plac'-es andtffor-exercising, such jurisdiction and for such"-vaareas. Notvcdfistanding the V provision for Constitutioinof 'Adaiats under' Section 19. Section 2213 of the Act pro\}id_e's 'for'vi"estat:)1isf_h1nent of Permanent Lok Adalats at stieti 'p1aces 1'o.r"e.i-riercisizig such jurisdiction in respect of;~;9nore-:p_u33li_c'*"uti1ity'services and for such areas may ._ the notification. Public Utility Service has'*b'_een defin"ed Section 22A (b) which reads as 22%. i)qfinitions.- In this Chapter and for the Sections 22 and 23, unless the context S A V }i'equires,~ utfcl.) xxx XXIX .. {b} P. "public utility service" means any- [A/..
32 {t} transport service for the carriage "of passengers or goods by air, rccidtéor -5 water; or __ _ V
(ii) postal, telegraph of ttelephohe or {iii} supply of po:Der_,_V watef public by any estc1b1ishrrzér:t:'or--.V-I _ {iv} systen1r...of ttconsernatieye or sanitatton}jo.r".Lh _ (1)) service or or -
(vi) ' d't1s_'urar1_ce §ser'vtCe.'" [ 4.
and the Central Gqiu"er4rimar:: or:3:'fthe:tStette Goberhntent, as the case be, Vthe'"p_nVb~!ic interest, by nottfication, declctrie" to t be utility service for the purposes this Chapter.
A18. the jurisdiction of Permanent Lek 4 Adalats is' confined to public utiiity services only whereas Lok :Ada1ats..u,nder Section 19 has jurisdiction over all the matters t.«ia1VV'res:f)ect of case pending before any Court or any matter Lo ._.c( 33 which is falling within the jurisdiction of and is not brought before any Court.
19. Section 22-C of the Act provides _ application to the Permanent Lok Adaiat for the. .. dispute. The application to be r'I'iatie to the ~f?'e.:f3'1ai1en_t I43.'-at Adalat is not in respect of a (:2'21s_e pending beforetdany The said application should be uuf'orxi"the sett1.e_rnent':'of dispute before the dispute is broiigiit before other words the Permanent Lok Adaiats no'~.,.vj.u-£3-_v§,;j.iction to decide disputes;whichtvavrcvalready"-pending before Courts. Such an applicationcouid be any party to a dispute. Once the application is to the Permanent Lok Adalat no party to shattuinvoke the jurisdiction of any Court in In other words, once the party elects to _ appr"o..ach\__"titefierrnanent LOB: Adalat for settlement of dispute. cannot: invoke the jurisdiction of any Court in the same Therefore, what emerges from the aforesaid provision jsgthe jurisdiction of Permanent Lok Adaiats is confined to ELL/..
34 settlement of disputes in respect of public utility Secondly, the Permanent Lok Adalats have -- entertain such. disputes only if those-'disp11tes are peniiing before any Court. By invoking the of Lok Adalats the party to the loses: to".
approach any Court thereafter sarne dispvuteyi However, the jurisdiction of su.ch is excluded in respect of offences __not law and also where the val_i_g\{, Rs. 10 lakhs.
20. A before the Permanent Lok Adalat under' subLs.ectton':.i2} of Section 22C by making an _ application. The" ..procedure prescribed before the Permanent principles of natural justice, objectivity, fair play, Aequ;«fy_ Lok Adalat shall not be bound by the _ Codekof {3iV"il:"?r0cedure and the Indian Evidence Act. The Vprocessladopted by the Lok Adalat in resolution of the dispute _ Vconciliation. It is only when the conciliation fails, the parties fail} to reach any agreement, the Permanent Lok Adalat gets 35 jurisdiction to resolve the dispute on merits. Every Permanent Lok Aclalat under this Act may either in terms of the settlement agreement-shall. befinai t>indir1g on all the parties thereto and on pers°o.ns1'.Ac1aimir1g:e"under' Once the award is passed by theVTP:.=:r*1narient tinder" V the 'ct, it shali be cieemeri to be..afeiecree of H the.Civ1'i§ Court, it shall be final and shall not in any original suit, application or'e;_§ecuti'o1§. enforceable by the Civil Court if it were a decree made by that Co71:.'1*rt}_; V b
21. Supreme had an occasion to consider this piitvision .in"t.he'1case of UNITED mum INSURANCE co. r;r1),}" SINHA AND ANOTHER reported in Am 2008 has made few observations. At paragraph ' 24 of"~the_j__utigrher1t, it is observed that:
A p it Z "An option, is given to any party to a dispute. it may be a public utility service provider or a public utility service recipient. The service must V .
36 have some relation with public utility. Ordinarily insurance service would not come within the publicj""., utility service. But having regard to the statutory-:"g:'-,g:"'»v. scheme, it must be held to be included j"
It is one thing to say that an authority_.is..c_re.ated ._ under a statute to bring about cths"ettlerne'«nt Alternate Dispute Resolution other thing to say that an'«.adjudie_atory conferred on it. Chapter"V"iefi;2I1, ther'efor'e._.V-tinbtizyur opinion, deserves In of this nature, the level" Qi'gscrzitiii;1'y. be high."
V ____ does not simply adopt' the'trolefbffVar1}1rbit1'ator whose award could be the subject"__otf.cl-iallenge but the role of an adjudicator. 'I"h_e' gflarliarrient has given the " authority t"o'Per'manent Lok Adalat to decide the "rriatter.'ItA has anadjudicating role to play. 'he;'-validity of the said provision is not in t ' ,__guestion,_ But then construction of such a provision 'must, be given in such a manner so as to make it V is prirriafacie reasonable."
"35. " Section 220(1) read with Secttori_iléf-:"o:".3xV.. c(2)_. Section 22--C(8} and sectton 22-52 of the Aott "' ' exclude the jurisdiction of the civil by « providing that when an appliction. by party to the Permanent Lok Qédatatl tolsettle fit"
dispute at the pre--lttigati'on stage,' the PLA' so, and the other _ precluded fiiom approaching the civii~c_ourti*i'n's'uoh as-case. 3 7. Section,~----1 certain Provtsos l.trr:.tt of the PLA.
Given V.. V_st._at:_ttorg interpretation stated _earl'ter;.: a corollary, must be tnterpre!.edVV_ih an .ex'pan_stve manner. 1' .._38. ' wtti:tt* "ttnportant to note is that with At'P.Sp€Cf""Of_:pliI:?l§C utilttg services, the main purpose Sectton.._22=C(8} seems to be that "most of A ' V. ., _theApettg"Cases which ought not to go in the regular Courtsv"ivo-uld be settled in the pre--litigatton stage * 'itself, '"' ~ V "a statute which would confer such a wide power in i' "40. We must guard against construction of [V. 38 the Permanent Lok Adalat having regard Section (8) of Section 22 (C) of the Act. " " " "
" It must not give an taany _ A disputants that it from the adjudicatorg role to in
jurisdiction without going">.._xinto the 'statutory provisions and resttftctionsm thereunder. The Permanent Lok power with due care, and caution. -. A h '
22. V ____ __A ofrfiejvéisthan High Court in the ease of TCJNK, ETC., Vs. SERVE SEVA SANSTHA'N,g'TONK 'A'z'vp':""'oTi1ERs, reported in Am 2004 V RAJASTHAN Vgefhhas V" observed . regarding the ofthe amendment brought to the Legai Services 1.98:7 at paragraph 3 as under:
" "The importance of the amendment lies promrmng welfare of the society by enabling the people to approach Lok Adalats.The amendment attempts to be 39 remove the helplessness of a con,sumer_"--V which. Irhefaces in the field of public utility 4' i" it services. The might of public b0dies_--whielt. are degenerating into storebllélmdse-I' '-- inaction where papers do bu'n.ot:l-.rriouelfrorn_ , "
one desk to another"dS'--~.§1 mldt-ter Of and responsibility e2tirarieous:':§ cons ideral. ion ,le:1t:ing.r' in 'the: ' lcojfntrlon it V helpless. bewildered' The malady is wides;pi'e%g§i.' arid =ide'ep'" «the society Cemplainmg and at. part of we.
The 1 dj'%j:eI1._Cl3rIie:'1tV"'in_ these harsh realities W/1Ppedrs lining which may in cotarsevof' n'.r_nel.stze§:eed in checking the rot."
"flierei'o1'e, if the parties do not arrive at any e0m'p_1'orrrise..vVo1"»."se'it'1en1ent, the ease is either returned to the _ Court. of jaw «for the parties are advised to seek remedy in a of=-law. This was causing unnecessary delay in the , «dispensation of justice. The Lok Adalat was an alternative mode ofsresolution of disputes to the cases. which had already §/.
6&0 reached the Court and pending adjudication before them. Even before the introductiora of Section 89 of the Code of Civil Procedure, because of the provisions of the Legal Services Authority Act. 1987. constituting Lok Adaiats, were referred to Lok Adalat. The system of Lok mainiy based on compromise org'settiernent parties. Therefore. when the compromiseiilrfif reached, such cases which tvere-referred. to LQi§'v_Ad*aiats,'V:were'V' returned to the Court ovfiaw. as"the:y were alreadyxgaefore the Court. Therefore. the purpose of matters to Lok Adaiats {was "=01; -'failure of which the matters were sent back t.<:i"CoLtrt»sV..°in' so far as the cases which were entertained by ti"'1e_i;o'k Adalats were not referred by the Courts, were advised to seek remedy in a Court of Law. It resu-llted"ifi'--«.e_ausiVx§g delay in dispensation of justice. it is in _ that"'context-with was felt that if the Lok Adalat are given the Vfjowers to decide the case on merits, in case the parties failed _ to Va-1':r*i*(re at any eomproniise or settlement, this problem could if beétackled to great extent. Further the cases which arise in 41 relation to puhiit' utility services, such as Mahanagar Telephone Nigam Ltd. Delhi Vidyuth Board, etc., neectvto be settled urgently so that people get justice without at pre--1itigation stage and thus most of the pettyftsasesi ought not to go to the regular Courts""w--o.u1d--l_:be_,lsettiled the p1'e--Iitigation stage itself, which would result iii work load on the reguiar Courts--_to~Vgreat.'e>;tent.1 the' V main object 01' introducing th.isll:jC.hapter la:-my constituting Permanent Lok Adalat is into forum for pre- litigation stage, nit;-re importantly; ..i't_w:$.s .ffit¥atnt only to petty cases which; ought. i19:t'iio'gol'to regular Courts so that the work load of reguiarliCoti";"i.s'to extent is reduced by resolution of such' petty cas'eAs;ai_.l'l'l1is:PerInanent Lok Adalat is not a remedy It is a remedy only to disputes between the app1icant'v'a'n2d VAlp't1'bIic2 utility services, the nature of dispute V V' _ beingpettylcases. which ought not to go to regular Courts. As . evenegto decide such petty cases there was no forum or pre- l' e.lii;.igati*./e mechanism. these Permanent Lok Adalats are constituted to fill the said vaccum. Therefore, the Permanent V 42 Lok Adalats are established for providing pre-litigation mechanism for eoiieiliation and settlement of cases public utility servicies.
24. It is in this background';.'we_'_'have"~to"
are the disputes the Permanent Adalatgean talteieognizancei . L' of, and who can approach the____;oievzfiriai1ent'Adalat. The opening words of SL'C,'3£lOYl"-'/;:.':'2f_(:'. giifegs uingdieation in this regard and therefore it isaof utmost. words used are "any party to Tlgie 'disjfiute' has not been defined under .eg'4'Tt:iere'f0re it has got to be given its ordinary dietion-aryd'rnea.ning; "Dispute" means a controversy havinggboth }30;§i~M,,\V?:{i aniq -negative aspects. It postulates the elgairn by one party and its denial by the other. This {nay...e0\fer"_~vthe.;'(%ni:i1*e range between genuine difference of _ opinion to dtleree eontz'oversy. The term 'dispute' in its wider .sem-T~e ma mean the wran lin s or uarrels between the _ Q one party asserting and the other denying the liability. M/.
43 In the narrower sense limited to contested claims of ciVi1--Vnature which Could have been decided by civil or reVenue--A'eeurts'.:i:'" is
25. The word "any party" pre'eed'e's The word 'any' is significant. It is of 'any' dictionariiy means 'one or-._s'a~me or VaiI'.._£n: B~£aek's" Law?"
Dictionary it is explained» "ua-n.y" diyersity of meaning and may be emttfjioyed' or "every" as well as "same" .oi'j::"oiie" t a given statute depends upoii"'t:"§»x§ subjeetniatter of the statute'. ii The legislature V 't not used the word any"
preceding the "(rjvr}1VV]V" 'They. have used the word 'any' precedinvguihe te'rm_vhpvarty. The use of the word 'any' party in the veontetxt itiias been used indicates that it has been used in véfldersense..ex:;e':vic'§:i-ig from one to all. Therefore, first we have _to find out -'.?\;:"I;'1.'c11. the dispute. Then find out who are ail yfiarties tovthe diS;)1.IE.(:'..
44 INSURANCE SERVICE
26. In the instant case We are Concerned relating to "insu1'a1'1(te. Service". Therefore, the qufestivonl isxvlio are all parties to :1 dispute before .a""Perma'._nent'};okl"Acialat. if "Insurance" is a contract Whereb3}'.._l"llfor"~. pa ._stipu'1at'e-dg consideration. one pziriy unde1*t,akes to"Conlper1satVe"'the'other-V for loss on a s1.)<%m'E'ied subject":g_bir:"spec_ifiedl party agreeing to inalua» the ccizlnpelnsativony--Vi'i:s,:l>l'u,sually called the "insurer" or "unclemfriterf1'the:otl1'cfTfinsut§d" for "assured"; the agreed _' written contract, "pol1cy",:V1.the against, "risks" or "perils"; and the subject, be protected, the "insurable intere;§§t.l" lt is ElV"(=>(j'iV1lllI'.';iCl whereby one undertake to indemnify another toss. damage, or liability arising from an u:;_kr'1_ovirnv :ojv_co.nt'*;'ngc21it. event and is applicable only to some _ contingency ~.o"r act to occur in future. In this contract the h Vc'l:'.ances"-of benefit are equal to the insurer and insured. The _lfirst~-actually pays :11 certain sum and the latter undertaken to M V. a larger if an acrzticlent should happen. The one renders his property secure; the other receives money with the probability that it is a ciear _<___w;;.-1.i:'1. The instrument by which the conLtract is made is caiied a policy, the stipulated conside:atio'np'V"aA premium. A coni1'a(~.i of insurance is a contract ubernrnae fidci, ' « that is, a c0i'1i.1'2-iv: based on utmosvtéood breach in good ('uni/1 by a party, the contract. A comracti of insurar;§§..._j,s a.\cont1'a<,3t_; it except in the ease of iife vinsvurance'. "insurances contract insuring the life 01' a the insurer, in consideration a gross sum or periodical p.ay;iie'i1.t'§;a-.._'nnd'ertakes' to pay the person for whose benefit the'insi:.rz:i1r:eis made, a stipulated sum, or annuity equivalent, upon ~i._l_'i(= death of the person whose life is insured, Tt1ii:Sn'5§S1'1£i§i happen, if the insurance be for the whole 1ifeVorpinV"c'ase :.if1'iéf+: shall happen within a certain period, if the V _ insur'a.nce .b'3"::i'()i' a limited time. It is an agreement by the insurer to pay to 1. he insured or his nominee a specified sum of either on 11"1e death of a designated life, or at the end of = a--certain period. provided the death does not occur before. L/c 46 consideration of prcsexlt payment of a fixed amount,"--Qr-ofdyazl annuity till the death of the period of insurance V' V'
27. The w<:>rc§ 'service' is not7 dunder The term has variety of r11eanings__f"Ety may mean anyibenefit orV V any act resulting; in momoting It in-"y be contractual proi'essi<>na1. g5ui§.11N, statutory etc., The concept of it should be understood context in which it has been...1.1séd_ is 11-;;;:_1,eu.actme'nt.... V V
28. 'InsL.I;"e»1I;c_'eSenfice may flow from a contract or a statut._e.'V The <~($1':%._;-uct of insurance stipulates the rights and ohiigatio_ns_o1°*--the parties to the contract. If dispute arises undery«the:'dVconi:.r'z1t31 any party to such contract may approach V _ the T¥*emn.ane:tt E.0§«: Adaiath for settlement of the dispute. The ._con.d_.it1'or'1" sprettedmkt for enforcement of such right is, the "r;is'Le1'*:ce of a <c~c>:-extract. between the applicant and the d " -Insurance Compzfmy. Eenerally, when the Insurance Company D. 47 commits breach oi' the terms of the contract or d::.._ not discharge its <)h1i<,g_;"at.io1t under the contract, or deficiency in service. the dispute arises and the aggfirievedv"
can approach Lise Permanent A.dcala,th Insurance Cornpsgiatx.-I which is a pub1ic'.utilitj{ ser'Vi_ce. as.' define'd. under Section 22A {bi of the Ac't,_.jif_Asuch a di.sp'tite'._;is"'ef 'i3ettyV V in nature, it can be normally-~--reso1Ved by"'evc:ncil§iation or settlement. The rights of yth'e__ arid the obligation imposed can be as("'e1'tainedV' 1'oo}t§ing, V.int'ci"'the terms of the contract entered %4;_'1fo..13ietiv1:§,e_n .the--._'pa1*ties.WIt is for resolution of such dispute'theV"V1?Q':::na»r1'en.t"LokiAdalaths are constituted. In the event 0f'S_u"ch €'i'is;'§Lii.e riottbeing resolved, the parties could not begdriven to"'1.%i._cw(2c>L1rt again. It is here the Permanent Lok Ptdalath also"~coni"erred power to adjudicate the said dispute. be adjudicated by the Lok Adalath either at V _ the 1'5're--Ii._ti'gat;i'o:'1 stzigcé or on merits is a dispute between the n ,i)ar'ties to "the co1'ii.1'act. The Permanent Lok Adalath is not .'c'onfe;*red with the jurisdiction to resolve a dispute between a d * -person who is not :1 party to the contract of insurance service \/ 48 and the insurer. Such a claim by a person who is 11ot"ai'party to the Contract. is not maintainable before the Adalath and the Pc1":r}21nent Lok AdE1.}a'[h-.haS~'_"I10VVjtii;iSdViVCfiQ1'1 'to V V entertain such claim.
29. ' If the claim is basedM'o13x,V:an3_( stat'uVte:,fithen one has to look into the p1'c.i\'isioris._..o*f .to'~find oututhe right of the ciaimants. £1'1('tV'()1)1}'~£-j'(a"t(']~.~.O.]:';.}" Company, and then find out =23 ,/wizthin the jurisdiction of the Perma1Vie::;4i";.ei;<_>l{"Whenwthe claim is under the provisions of {;he'M-c)io:jp"Vehicles Act, We have to find out. is there any 's3te1iiL1V1oi'_'\_»' {.5ijl.i»gai:§.on on the part of the Insurance _ Con1p.{1nyeA.to rei':cl._ei' any service and settle the claim of the Thnéi-If§?f:("J]"(?. ii. is necessary to look into the scheme of the Art. to find out any such statutory obligation V _ to rei1der.__'ins.ui*a1ice senrice. SeL'Ii(m "146 of MTV. Act under Chapter X} mandates that no ;'>c1'so1'1 shall use, except as a passenger, or g/ 49 cause or allow oiiiel' person to use a motor vehicle in aippublic place, unless 1:l"1erc is in force in relation to the~~~uspc.__o'fV.j'tlie¢ vehicle by that §)C1'."-'sf)1'l or that other person, as the"eVase_t.ma3' be, d a Policy of lnsuraiice complying with irequireziientspof"'this Chapter. Section 147 of the 'Act dea;_lsiA' requirement oi' p<)li('j€s of insurarice Section 149 of i\/'I.\:*, Aci1,castsl"a ontithednsurance company to pay co1o1:pe1'1satio_n provisions of the M.V. Act. Sec'1.i.o_:i ()l'::l\ti.V'\yfi {oiling 'm}c'iiapter XII of M.V. Act 1988. proi%iilc._ Tribunal. A State Governnient. '::iz'iui_2'V;.'fl;>j§r" _notification in the Official Gazette,' constitute one "or i':i';(irc_ Motor Accidents Claims Tribunals for _ such _..:;j;.rea. as i%'ia.__x;j be specified in the notification for the purpose adj-ii<lic2ii.i.r1g upon claims for compensation in re3_pe'c_t.io"f involving the death of, or bodily injury to, V _ persons arising' (ml of the use of motor vehicles, or damages to . any property of z-'1 iliird party so arising or both. Under Section 'oflVI.V. Act. application for compensation could be iodged. tjvvsection 167 of iiie lV1oior&Vehicles Act, gives an option li/ St} regarding claims for compensation in certain cases. It provides - that notwithstamiiug 2-1£'}.yEi'1ii'ig contained in the Wori~_:rnen's Compensation ./\('i'. 1923. where the death of, or bodii3?:"i.nju1y to, any person gives rise to a claim for compensation urid"er.tli-is Act and also umm the Workmerfs_JCornpen--sati'on'_':.'ict' f1,923,"' the person ent1'1'1cd io coinperisation'-._mayevritlmut.p'reju:tEiceI1Vto the provisions of" Chapter X claim stiC'l*i eornpienszrtion linderitr either of those Acts but not under1"ootti:..u Award. icouldvfbe passed by the Motor 1-\('..('i(iI(*1'11. C-l.ai:ns "_'TI'1.';Vb1.ul.1":1'a;l'..'1.,i11'(2"l<3I' Section 168 of MV. Act. The 13:-c>(:c<11.::re_that'--is'conterr1p1ated'" for holding any enqui1yV7._t1n--:j'er."M.V. Act is provided under Section 169;)!' vI\/iV.V"»-I': .'4§..~XA'(:'t~ Vtiiihiéch would mandate that a claim petitioinvshall i'c.>I'ies.yc v1"1..l1€::3 that may be made and follows such suinrnary .A_;J;io9ee_.c<Ii11ggs as it thinks fit. The insurer could be itmpi-e_aded:"'a.s to the proceedings under Section 170 of _ M.V.""'Act;'Section }73 of MN'. Act, 1988 would deal with the Vtfirovisions sre§.at.i11_t_>; to ap13eais that could be filed against the and zzwzlmis passed by the Motor Accident Claims Tribunal. Section £753 of the Motor Vehicles Act, bars the \/S 51 jurisdiction of the Civil Courts to go into the ciaium for compensation in a motor vehicle accident. it states that"tyhere any Claims Tribune} has been constituted for any iareaj ' Court shall have jurisdiction to entertain ' to any claim for compensation which«¢may "he by the Claims Tribunal for tha1:._areaA,"' and _ iris' respect of any action taken or_...tVo;*beVe.taken"by_or_i§before the Claims Tribunal in respe'ct«' of the?VC.c1airnfv'fort compensation shall be granted by the-Civil :Court:'.' VSe_Ct_ionV M.V. Act would mandate grant'-.of fioyyeif to frame rules for the purposes the provisions of Section 165 to Section Iv of '.3o.\ .fr"n.¢ Supreme Court in the case of NATIONAL LTD. Vs. NICOLETTA ROHTAGI _ reporteddn» '£2002 ACJ 1959, interpreting the provisions of .y.."1Viotor Vehicles Act and the intention of the legislature Was to 'prowct the third party rights and not that of the insurer, at mp-aragraph 13 has held as under:
52
"Under Section 96(2) of 1939 Aci..2'io'hig;;i;.._I: r.- corresponds to Section 149(2) of 1988___}§.et,V--a1:'_ insurance company has no rightntobe a"partyiV'to_ani action by the injured person':'orfldependants deceased against the insured. However, .said provision gives in the insurerylyithe right' party to the case and to 'It 'tiiorejbre, obvious that the '4"¢;,'yivv.;:r'eCiture of the statute andits content 'the--1provisions of the st§ati3te.:'_'Afie_r been made a party to t5.ie::q:i¢$ttdn arises what are under the statute.
in enacting sub--section (2) of;Sectiori be plain and Simple and thereis no it. It shows that when an giinsurerand has been given notice of case, he"is"'e'ntitled to defend the action on the .tVgm_4unds«A"'enunierated in the sub-section, namely, '-".__sub;5.e_oiiori""(2) of Section 149 of 1988 Act, and no A other around is available to him The insurer is not allowed to contest the claim of the injured or heirs A' ' ._of the deceased on other ground which is available
-'to an insured or breach of any other conditions of the policy which do not find place in subsection (2) 53 of Section 149 of 1988 Act. if an insurer permitted to contest the claim on other grounds' would mean adding more grounds of contestggtQ_"';gy1§ . insurer than what the statute has speeij'ic(1ity".i"' is provided for. "
-.. 1. The stawitory liability of =,t.__e:I_ns?i.1r3n1c.e 'C.o1'n'pany; to satisfy the third parties, i.e., a' partydwhdo is to contract of insurance is found =S_eCti0n casts a duty on the insurer to satisfy"'t.he .'_iAud.grhe,ntVs' '-- and ayyards against persons insured in respectofithirdiiparty'iii:-;1§.} The heading of the said Section'.*is..tsignificant. The duty is to satisfy judgment and awards and not the third parties. If the claim of the; third party is adjudicated and the judgment and award is Ethen,~.the shali pay to the person entitled to the rbenefit' of decree, any sum not exceeding the sum assured paya.b1ev_t11ereunder, as if he were the judgment debtor, in x""«.__V"'respect the liability, together with any amount payable in t of the costs and any sum payable in respect of interest .A that sum by virtue of any enactment relating to interest on M/..
54 judgments. So the condition precedent for such payment by the insurer is the passing of the judgment and award orgdecree.
"fill such time, there is no liability on the insurer Motor Vehicles Act. Sub--section (2) of that as the insurer has to pay the_~am_ountt theuu judgment or award, the insurer shall proceedings before the comrnenceznent- 'of . Once the insurer is made against the insured, the insurer right under the aforesaid provisionto defendhthev of the grounds mentioned th'erein;':"'Thep groiinclis set out in the said provision are breach "era condition of the policy or the policy being._%,yoid on "'i1~,_«:.{; ground that it was obtained by non... disclolsure tofyrnaterial fact or by representation of fact which Wasl"fa1se' «ii1..'so:n1"e material particulars. This is a defence it _against the insured and not against the claimant. However. H H " Section makes it clear that in the course of any enquiry, on claim petition, if there is collusion between the person the claim and the person against whom the claim is is/, 55 made, or the person against whom the claim is made has failed to contest the claim, the insurer has been conferred theliight to contest the claim on all or any of the grounds that _ to the person against whom the claim has been
32. Thus the Act makes' out allclexar ;
a contract of Insurance, in lat}:/7% and the statutory insurance, is :.orTvaboVe parameters of a contract of indemnityi wisdom, has mandated a Moto1*'Veiiic1e_ Ace-identilribcunal to pass an award against the '--lnsuref,"-»or- .et4h'e_.owr1er, or the driver. By wording Section 168'spe.cia1¢l:l_':nanner Parliament has more than indicated that contract of indemnity obtaining in Common Law hasnno relevance. Section 168, in simpler terms. means an the award if there was a policy on the date it of accident. coirering the risks arising out of the use of the it If"there was no policy covering the vehicle, then as per 168 it is the insured owner who has to satisfy the ' 'award. If the owner was dead and if the vehicle was not covered E/ 56 by insurance on the date of accident, it is the driver..wl_io'_.liajs satisfy the award. Parliament being aware of arid it nuances of law has worded Section;"168"in._ a. s1:-eci_al--_m_anner; doing away with the concept of indemnification cor'.rimvon'~, law. There is no question of joi1'1t"and several.eli'abi'lity"and of indemnification for purpose ofp.AChap'ter"'sX and'VXI MV Act 1988.
33. 'If1'iere.fore,-':l«_Vfrom-thescheme of the Motor Vehicles Act, it is Vyclearllthatltiiiere no liability on part of the Insurance Companysto'«arisiyerf:orlsatisiy*the' claim of the claimants under the Act. "However, l1once_i such claim is enquired into, adjudieateti upon " and an award is passed, if there is a valid A'~._insur,ance policyvcovering the risk of the insured in respect of the motor' «fie-.11_iclie"Vinvolved in the accident, then, the insurer it _steps"intov*..Vthe 'shoes of the judgment debtor and he is under an .4u"'oyhiigationV"'to pay the amount stipulated in the judgment and »aWard"or decree. Therefore the liability to pay the amount to fclairnant arises only after the judgment/ award / decree and 57 not before. Therefore it cannot be said that dispute between the claimant and the insuranceviconipagigir V' which gives cause of action for thedciaimant-<g't0.;<a:pprc-aich' the Permanent Lok Adalath under Sectionfl2_fi(c) dispute exist between the clairnaritg and the it judgment/award or decree' is "Cla-irnsi Tribunal constituted under the after passing of such judgment/'award amount payable by the insurer", themii/iotor Vehicles Act if the a1nount-i_sT said that a dispute exist betweenhthe insurance Company and not eariier to such point oi" i
34. , -- .. L Therefore under the provisions of the MVC Act, the . hai:§*t0"i'be preferred against the insured and the driver. is also added as a party by Virtue of Section bf the Act. No claim against the Insurance dz"-'..__'CompanyV__Ais Inaintainable Without the owner of the Vehicle or 3 of the Vehicle being made a party to the proceedings. 58 Whereas, the claim for compensation is validly against the insured and the driver Insurance Company, a party. The 'l'ribu'r13l_ the MVC Act has been conferred and adjudicate such claims.
constituted under the Plot haslijurisdictiodn"*to~7§entertain, conciliate and if it fails' Q only against a public utility service_._ It adjudicate any claim againstia" insured and the driver. shouljd a public utility service and Therefore a dispute with reference to"rlns:r1rance'.service necessarily means the claim is against Insurance Company. The claim for compensation for the for a victim of a road accident or for the injury sustdained' i'n..__a'n."accident cannot be characterized as petty V _ claims. zfsubstantial claim. The Parliament has enacted .«l.\/lotor: Vehicles Act, 1988 specially constituting the 4'_p__'l'1*ibu11al to adjudicate such claims and has specifically excluded the jurisdiction of the Civil Courts to entertain such is/.
59 ciaims. A statutory appeai is provided against""----.such adjudication to the Hon'ble High Court. Normally, ciaims are decided on the basis of the evidence recorded, and documentary. The Permanent Lok"Ada1at,'his broadly meant to decide petty cases. When Permanent Lok Adalath has he§'fi..¢_Vestedw__wi.tj1V to".
decide the case on merits. "no appeal is provided against such adjudicatioiid hiandfthe passed by the Permanent Lok Ad'a_1_ath:'has' hCe:nr..d:'i11§1d(g It is in this background as f1'onrithe ~.ai'o'rvesaidHstatutory provisions the claims for -under the Motor Vehicles Act is not principally" against.'the'"'__pub1ic utility services, but against the insured and"the vdrivier of the vehicle and only in the event of the judgment/award or decree is passed, the Insurance pay the said amount.
35. " Therefore, the Permanent Lok Adaiath has no pV"jVu1*isdis:tion to entertain the claim under the Motor Vehicles 11/ 60 Act. by a person who is not a party to the insurance, under Section 22--C of the Legal Servic--ee" V' Act, 1987. Hence, Ipass the fo11oudr1g'order :
(a) All the Writ Petitions a:'e.4g1Iotbe;i;"--
(b) The impugned orders t1e§«v{."1g"'tttat tr e Lwk Adaiat has got totterttertain claim petitions under ,ete.1_Legai"'s.;é&§m¢eg»e.__Atith§fii:és Act, .1987 is (cf the claimants are rejected, to prefer the claims before the . _ MotorV_VAccf£tertt Cioirrts Tribunal constituted under the Motor Vehtctes'Act. 1.988.
. "to bear their own costs.
it/t High Court registry is directed to send a copy of to all the Permanent Lok Adalats in the Statefor ' g "