Tanya Gupta
Published on: March 17, 2022 at 18:54 IST
The Allahabad High Court in Motor Accident Claims Case imposed a Fine of Rs 5 Lakhs on the Insurance Company for keeping this Litigation alive for almost 20 Years.
The Bench of Justice Dinesh Kumar Singh Fined the Insurance Company with Exemplary Damages as it made the Complainant (her Husband died in a Car Accident in 1999) and her Minor Children suffer incomprehensibly.
A Motor Accident Claim was filed by the Opposite Party No.2/ Claimant before the Tribunal, Raebareli.
This Petition was challenged by the Insurance Company. However, their Counsel later abstained from appearing in the Petition.
Thence, in an Ex-Parte Judgement, the Tribunal Awarded the Compensation of Rs. 11,94,472/- along with a Simple Interest of 10% per annum to the Claimant on August 29, 2001.
The Insurance Company on December 19, 2001, filed an Application Under Order 9 Rule 13 of Code of Civil Procedure (CPC) along with an Application for Condonation of Delay Under Section 5 of the Indian Limitation Act.
Both the Applications were Rejected by the Tribunal.
The Tribunal further directs to initiate Proceedings against the Insurance Company Under Section 340 of Code of Criminal Procedure (CrPC) as the Documents which were filed in Support of their Application were Allegedly Fabricated.
Seeking to challenge this Very Order, the Insurance Company moves to the High Court.
After reviewing the Contested Order with due Diligence, the High Court Upheld the Tribunal’s Order and expressed Regret that the Victims were Deprived of the Compensation that they should have been Awarded in 2001.
“It is extremely painful to note that the Victims, whose Breadwinner died, leaving behind a Widow and Five Children, have had to Suffer so much as a result of the Nearly 20-Year Pending of this Writ Petition before this Court,” the Court observed.
Due to lack of Merit and Substance, the Writ Petition was Dismissed.
The Petitioner (Insurance Company) was directed to Deposit the whole Amount of Compensation (including Interest) within One Month of the Tribunal’s Order.
Also Read: Allahabad HC Enhances Compensation to Minor who suffered 30% Disability in Motor Accident
