Skip to main content

Insurance - SC cautions Courts against Hyper Technical approach

There is no bar to a claim petition being filed at a place where the insurance company, which is the main contesting parties in such cases, has its business. In such cases, there is no prejudice to any party, the Court said.

The Supreme Court in Malati Sardar vs. National Insurance Company Limited has restated its earlier position in Mantoo Sarkar vs. Oriental Insurance Company Limited (2009) 2 SCC 244 regarding territorial jurisdiction of Motor Accident Claims Tribunal. Apex Court Bench of Justices Anil R. Dave and Adarsh Kumar Goel held that there is no bar to a claim petition being filed at a place where the insurance company, which is the main contesting parties in such cases, has its business.

Context

A young teacher from Hoogly died in an accident in 2008. The Tribunal in Kolkata, on his application awarded a compensation of Rs.16, 12,200/-. The appeal preferred by the Insurance Company preferred was allowed on the ground that the Tribunal has no jurisdiction since the deceased is not a resident of Kolkata and the accident did not take place in Kolkata. The mother of the deceased approached the Apex Court.

Law

Section 166(2) of the Motor Vehicles Act, reads ‘Every application under sub-section (1) shall be made, at the option of the claimant, either to the Claims Tribunal having jurisdiction over the area in which the accident occurred, or to the Claims Tribunal within the local limits of whose jurisdiction the claimant resides or carries on business or within the local limits of whose jurisdiction the defendant resides, and shall be in such form and contain such particulars as may be prescribed’

In absence of prejudice, no objection of lack of territorial jurisdiction be entertained

The Court said that, the view taken by High court is contradictory to the Apex Court ruling in Mantoo Sarkar case wherein it held that, with regard to Section 21 CPC, objection of lack of territorial jurisdiction could not be entertained in absence of any prejudice. In that case it was further held that “Distinction was required to be drawn between a jurisdiction with regard to subject matter on the one hand and that of territorial and pecuniary jurisdiction on the other. A judgment may be nullity in the former category, but not in the later. “The Bench said that the High Court was not justified in setting aside the award of the Tribunal in absence of any failure of justice even if there was merit in the plea of lack of territorial jurisdiction.

Claim petition may be filed in a place where Insurance company has its business

The Court further held that there is no bar to a claim petition being filed at a place where the insurance company, which is the main contesting parties in such cases, has its business. “In such cases, there is no prejudice to any party. There is no failure of justice”, the court said.

No to Hyper technical approach

The Court also cautioned against adopting hyper technical approach in interpreting a benevolent provision for the victims of accidents of negligent driving and said that the provision for territorial jurisdiction has to be interpreted consistent with the object of facilitating remedies for the victims of accidents. Hyper technical approach in such matters can hardly be appreciated, the Bench said.

Read more at: http://www.livelaw.in/motor-accident-claims-sc-cautions-courts-against-hyper-technical-approach-in-interpreting-benevolent-provisions-for-accident-victims/

Comments

Most viewed this month

Appellate authorities under Special Statutes cannot be asked to condone delay

Madras High Court in R.Gowrishankar vs. The Commissioner of Service Tax has held that Appellate authorities cannot be asked to condone the delay, beyond the extended period of limitation A Division Bench comprising of Justices S. Manikumar and D. Krishnakumar, made this observation while considering an appeal filed against Single Bench order declining to set aside the order made in the condone delay petition filed by the petitioner to condone 223 days in filing the appeal before the Commissioner of Service Tax (Appeals). Article referred: http://www.livelaw.in/appellate-authorities-special-statutes-cannot-asked-condone-delay-beyond-extended-period-limitation-madras-hc/

'Seize assets to pay damages to accident victim'

Her story might be an inspiration for the physically challenged but justice has remained elusive for her. In 2008, a bus accident left research engineer S Thenmozhi, 30, paraplegic. In April 2013, the motor accident claims tribunal directed the Tamil Nadu State Transport Corporation (TNSTC) to provide her a compensation of 57.9 lakh. However, TNSTC refused to budge and on Tuesday a city court ordered attaching of movable assets of the transport corporation. Thenmozhi was employed in C-DOT, a telecom technology development centre in Bangalore. On July 21, 2008, she was coming to Chennai in a private bus. Around 2am, the bus had a flat tyre and the driver parked it on the left side of the road near Pallikonda in Vellore district on the Bangalore-Chennai highway. While the tyre was being changed, a TNSTC bus of Dharmapuri division hit the stationary bus. The rear part of the bus was smashed and passengers were injured. Thenmozhi who had a seat at the back of the bus suffered...

Mumbai ITAT rules income of offshore discretionary trust is subject to tax in India

The Mumbai Income Tax Appellate Tribunal (ITAT) has recently determined the following issue in the affirmative in the case of Manoj Dhupelia: Should the income of an offshore discretionary trust be subject to tax in India, if no distributions have been made to beneficiaries in India? The question arose from appeals filed by individual beneficiaries in relation to a Lichtenstein-based trust, the Ambrunova Trust and Merlyn Management SA (the Trust) with the ITAT. It is important to note that the individuals in this case were amongst those first identified by the Government of India (GOI) as holding undeclared bank accounts in Lichtenstein. The ITAT ruling raises the following issues: Taxation of Trust Corpus: ITAT classified the corpus of the trust as "undisclosed income" and declared it taxable in the hands of the beneficiaries. Taxation of Undistributed Income: ITAT refused to draw a distinction between the corpus and undistributed income from the trust and declared i...