Motor Accident Compensation: Supreme Court Clarifies Cross-Objection in Appeals
The case of Urmila Devi & Ors. v. Branch Manager, National Insurance Company Ltd. & Anr. revolves around the compensation claim for a fatal motor accident and the procedural question of whether claimants can file a cross-objection in an appeal filed by the insurance company. The Supreme Court was called upon to decide if the High Court was correct in dismissing the claimants’ cross-objection on procedural grounds.
Background of the Case
On May 2, 2008, Sanjay Tanti, the husband of appellant Urmila Devi, was traveling from Ladma to Goradih in a Tata Maxi vehicle when he met with an accident. His legal heirs filed a claim under Section 166 of the Motor Vehicles Act, 1988, seeking compensation from the vehicle owner, driver, and insurer.
The Motor Accident Claims Tribunal (MACT) awarded a compensation of Rs. 2,47,500 to the claimants. The insurance company contested the liability in an appeal before the Patna High Court but later decided not to pursue it. The claimants had also filed a cross-objection seeking an enhancement of compensation.
The High Court dismissed the cross-objection, holding that it was not maintainable since the insurance company had not challenged the compensation amount but only its liability.
Arguments by the Parties
- Petitioner (Claimants): The claimants argued that they had the right to file a cross-objection under Order XLI Rule 22 of the CPC. They contended that even if the insurance company withdrew its appeal, their cross-objection should still be heard.
- Respondent (National Insurance Company): The insurer maintained that since their appeal did not contest the compensation amount but only their liability, the claimants had no right to file a cross-objection. They further argued that the claimants should have filed a separate appeal instead.
Supreme Court’s Observations
The Supreme Court examined the relevant legal provisions and past precedents:
- Right to Cross-Objection: The Court held that under Order XLI Rule 22, a respondent in an appeal has the right to file a cross-objection, even if they have not appealed independently.
- Appeal Withdrawal Effect: The Court clarified that the withdrawal or dismissal of the insurance company’s appeal does not automatically invalidate the cross-objection.
- Applicability to Motor Vehicle Claims: The Court referred to Section 173 of the Motor Vehicles Act and Rule 249 of the Bihar Motor Vehicles Rules, 1992, which explicitly allow cross-objections in such cases.
The Court held:
“Even if the appeal of the Insurance Company was dismissed in default and the Insurance Company had submitted that they were not interested to revive the appeal, still the High Court was required to decide the cross-objection of the appellants on merits and in accordance with law.”
Final Verdict
The Supreme Court allowed the appeal and set aside the Patna High Court’s decision, ruling that the claimants’ cross-objection was valid and must be decided on its own merits. The case was remanded to the High Court for reconsideration.
Petitioner Name: Urmila Devi & Ors..Respondent Name: Branch Manager, National Insurance Company Ltd. & Anr..Judgment By: Justice S.A. Bobde, Justice B.R. Gavai, Justice Surya Kant.Place Of Incident: Patna, Bihar.Judgment Date: 30-01-2020.
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