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Friday, August 13, 2010

Motor Vehicles Act, 1988, S.166

The Hon’ble Mr. Justice Rajesh Bindal
F.A.O. No. 919 of 2009 (O&M)
Bajaj Allianz General Insurance Company Ltd.
v.
Biri Bai & Ors.
{Decided on 17/02/2010}
Present: Mr. Ashwani Talwar, Advocate for the Appellant
Mr. Sunil K. Sharma, Advocat for the Respts No. 1 to 7 in FAO Nos. 919 and 1251 of 2009, respondent No. 1 in FAO No. 1256 of 2009 and repoets No. 1 to 3 in FAO No. 921 of 2009
Motor Vehicles Act, 1988, S.166--Compensation--Liability of Insurance Company--Award challenged on ground that in spite of fact that Insurance Company was not held liable, still it has been directed to satisfy award first and thereafter recover same from owner of offending vehicle--Recently in National Insurance Co. Ltd. and others v. Paravatheni and another a Bench of Hon’ble Supreme Court referred matter to Hon’ble Chief Justice of India for constituting a larger Bench to decide following questions:
1) If an Insurance Company can prove that it does not have any liability to pay amount in law to claimants under Motor Vehicles Act or any other enactment, can Court yet compel it to pay amount in question giving it liberty to later on recover same from owner of vehicle.
2) Can such a direction be given under Article 142 of Constitution, and what is scope of Article 142. (Para 5, 7 & 8)