New India Assurance Co. Ltd vs Asha Rani & Ors on 17 August, 2001
4. On hearing learned counsels, I' am of the
considered view that there is no merit in this appeal.
Considering the very question with regard to the liability
of the insurer to pay and recover from the owner of the
vehicle, even though the liability of the insurer was
absolved, the Hon'ble Supreme Court in the judgment in
the case of National Insurance Co.Ltd. vs. Baljit Kaur
and others reported in 2004 ACJ 428 answered the said
issue therein. The Hon'ble Supreme Court therein,
having taken into consideration the judgment in the case
of New India Assurance Co. Ltd. v. Asha Rani, 2003 ACJ
1(SC) as well as Section 168 of Motor Vehicles Act, held
that the upshot of the aforementioned discussions is that
the insurer be directed to satisfy the awarded amount in
favour of the claimant if not already satisfied and recover
the same from the owner of the vehicle. The Hon'ble
Supreme Court further held that for the purpose of such
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recovery, it would not be necessary for the insurer to file
a separate suit but it may initiate a proceeding before the
executing Court as if the dispute between the insurer
and the owner was the subject matter of determination
before the Tribunal and the issue is decided against the
owner and in favour of the insurer.