Full Judgment Text
20
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.422/2009
rd
Date of Decision: 23 February, 2010
%
SOBAT SINGH ..... Appellant
Through: Mr. Kishan Nautiyal, Advocate.
versus
RAMESH CHANDRA GUPTA & ANR. ..... Respondents
Through: Mr. Atul Nanda, Ms. Rameeza,
Mr.Sumeer and Ms. Sugandha,
Advocates for Bajaj Allianz General
Insurance Co. Ltd. with Mr. Sanjay
Gupta, Manager.
Mr. Atul Nanda, Ms. Rameeza,
Mr.Sumeer and Ms. Sugandha,
Advocates for ICICI Lombard General
Insurance Co. Ltd. with Mr.Gaurab
Gaba, Manager.
Ms. Manjusha Wadhwa and Ms. Harsh
Lata, Advocates for Oriental Insurance
Company Limited.
Ms. Anjali Bansal, Advocate for Tata
AIG General Insurance Co. Ltd., Bharti
AXA General Insurance Co. Ltd. and
Future Generali India Insurance Co.
Ltd.
Mr. Sunil Kapoor and Mr. Anuraj
Sharma, Advocates for HDFC ERGO
General Insurance Co. Ltd.
Mr. S.L. Gupta, Advocate for National
Insurance Company with Mr. Santosh
K. Sood, Manager, DRO-I and Mr. N.
Wadhwan, Asst. Manager, DRO-II.
Ms. Adarsh Sabharwal, Adv. for
Raheja QBE General Insurance Co.
Ltd.
Ms. Shantha Devi Raman with Mr.
Amit Maihen, Advocates for IFFCO
Tokyo General Insurance Co. Ltd.
Mr.Pankaj Seth, Advocate for Reliance
General Insurance Co. Ltd., Universal
Sompo General Insurance co. Ltd. and
Royal Sundaram Alliance Insurance
Co.Ltd.
Mr. Kanwal Choudahary, Adv. for R-2.
MAC.APP.No.422/2009 Page 1 of 21
Mr. K.L. Nandwani, Advocate for United
Insurance Company with Mr. Harish
Choudhary, Deputy Manager and Mr.
Sanjeev Negi, Admn. Officer.
Mr. O.P. Mannie, Amicus Curiae.
Ms. Suman Bagga, Advocate for
Cholamandalam MS General Insurance
Co. Ltd.
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA
1. Whether Reporters of Local papers may YES
be allowed to see the Judgment?
2. To be referred to the Reporter or not? YES
3. Whether the judgment should be YES
reported in the Digest?
JUDGMENT (Oral)
th
1. In terms of order dated 27 January, 2010, the
following Claims Tribunals have submitted their interim
reports:-
(i) Report of MACT (Central)
The MACT (Central) has submitted the interim
report and has sought two months time to furnish the
complete information. In the interim report, it is stated
that 2092 cheques are pending with the Nazir out of
which 2020 cheques have lapsed. The table containing
the details of 242 cases has been furnished but in all
the cases, neither the Insurance Companies nor the
Claims Tribunal have given notice of deposit of the
award amount to the claimants. The Claims Tribunal
has not calculated the period and amount of interest.
The recovery has been effected by attachment of bank
MAC.APP.No.422/2009 Page 2 of 21
accounts of the Insurance companies in six cases. The
directions of this Court in the case of New India
Assurance Company Ltd. Vs. Kashmiri Lal, 2007
ACJ 688 with respect to the cost of Rs.5000/- have not
been followed.
(ii) Report of MACT (South)
The MACT (South) has submitted the interim
report and has sought one month time to furnish the
complete information. It is stated that 536 cheques
were deposited in last one year, out of which 426
cheques have been released and 110 cheques are
pending out of which 73 cheques have lapsed. The
table containing the details of 461 cases has been
furnished but in all the cases, neither the Insurance
Companies nor the Claims Tribunal have given notice of
deposit of the award amount to the claimants. The
Claims Tribunal has not calculated the period and
amount of interest. The directions of this Court in the
case of New India Assurance Company Ltd. Vs.
Kashmiri Lal (supra) have not been followed.
(iii) Report of MACT (East)
The MACT (East) has reported that 99 cheques are
pending with Claims Tribunal out of which 48 cheques
have lapsed. Out of the 202 cases in the last one year,
the notice of deposit has not been given to the
MAC.APP.No.422/2009 Page 3 of 21
claimants either by the Insurance Company or by the
Claims Tribunal. The amount of interest under Order
XXI Rule 1 during the last one year has been computed.
The directions of this Court in the case of New India
Assurance Company Ltd. Vs. Kashmiri Lal (supra)
have not been followed.
(iv) Report of MACT (South-West), Dwarka
The MACT (South-West) has submitted the interim
report and has sought 15 days time to furnish the
complete information. In the interim report, it is stated
that 65 cheques are pending for release and 42
cheques have lapsed during the last year. The table
containing the details of the cases has been furnished
but in all the cases, neither the Insurance Companies
nor the Claims Tribunal have given notice of deposit of
the award amount to the claimants. The Claims
Tribunal has calculated the period and amount of
interest. The directions of this Court in the case of
New India Assurance Company Ltd. Vs. Kashmiri
Lal (supra) have not been followed.
(v) Report of MACT (North)
The MACT (North) has submitted the interim
report and has sought one month time to furnish the
complete information. It is stated that 132 cheques are
lying deposited for being released and 16 cheques have
MAC.APP.No.422/2009 Page 4 of 21
lapsed during the last year. The table containing the
details of 331 cases has been furnished but in all the
cases, neither the Insurance Companies nor the Claims
Tribunal have given notice of deposit of the award
amount to the claimants. The Claims Tribunal has not
calculated the period and amount of interest. The
recovery has been effected by attachment of bank
accounts of the Insurance companies in four cases. The
directions of this Court in the case of New India
Assurance Company Ltd. Vs. Kashmiri Lal (supra)
with respect to the cost of Rs.5,000/- have not been
followed.
(vi) Report of MACT (West)
The MACT (West) has submitted the interim report
and has sought one month time to furnish the complete
information. In the interim report, it is stated that 353
cheques are lying deposited out of which 153 cheques
have lapsed. The table containing the details of the
cases has been furnished but in all the cases, neither
the Insurance Companies nor the Claims Tribunal have
given notice of deposit of the award amount to the
claimants. The Claims Tribunal has not calculated the
period and amount of interest. The directions of this
Court in the case of New India Assurance Company
Ltd. Vs. Kashmiri Lal (supra) have not been followed.
MAC.APP.No.422/2009 Page 5 of 21
(vii) Report of MACT (South-East)
The MACT (South-East) has submitted its report in
which it is stated that 441 cheques were deposited out
of which 404 cheques have been released and 15
cheques have lapsed. The table containing the details
of the cases has been furnished but in all the cases,
neither the Insurance Companies nor the Claims
Tribunal have given notice of deposit of the award
amount to the claimants. The Claims Tribunal has
calculated the period and amount of interest. With
respect to the directions of this Court in the case of
New India Assurance Company Ltd. Vs. Kashmiri
Lal (supra), it is reported that cost of Rs.5000/- has
been imposed in three cases.
(viii) Report of MACT (North-East)
The MACT (North-East) has submitted the report
in which it is stated that 40 cheques are lying deposited
for being released and 115 cheques have lapsed during
the last year. The table containing the details of 284
cases has been furnished but in all the cases neither
the Insurance Companies nor the Claims Tribunal have
given notice of deposit of the award amount to the
claimants. The Claims Tribunal has not calculated the
period and amount of interest. The directions of this
Court in the case of New India Assurance Company
Ltd. Vs. Kashmiri Lal (supra) have not been followed.
MAC.APP.No.422/2009 Page 6 of 21
(ix) Report of MACT (North-West)
The MACT (North-West) has submitted its report
and stated that cheques are pending for being released
in 56 cases and 70 cheques have lapsed during last
year. The table containing the details of 135 cases has
been furnished but no information regarding notice of
deposit of the award amount to the claimants has been
given. The Claims Tribunal has not calculated the
period and amount of interest. The directions of this
Court in the case of New India Assurance Company
Ltd. Vs. Kashmiri Lal (supra) have not been followed.
(x) Report of MACT (Outer)
The MACT (Outer) has submitted its report and
stated that 55 cheques are pending for release and 33
cheques have lapsed during the last year. The table
containing the details of the cases has been furnished
but in all the cases, neither the Insurance Companies
nor the Claims Tribunal have given notice of deposit of
the award amount to the claimants. The Claims
Tribunal has not calculated the period and amount of
interest. The recovery has been effected by attachment
of bank accounts of the Insurance companies in two
cases. The directions of this Court in the case of New
India Assurance Company Ltd. Vs. Kashmiri Lal
(supra) have not been followed.
MAC.APP.No.422/2009 Page 7 of 21
(xi) Report of ASJ, Fast Track Court (West)
The ASJ, Fast Track Court (West) has submitted its
report and stated that 4 cheques are pending for being
released and no cheque has lapsed. The table
containing the details of 20 cases has been furnished
but in all the cases neither the Insurance Company nor
the Court have given notice of deposit of the award
amount to the claimants. The Court has calculated the
period and amount of interest.
2. The Presiding Officer, MACT-New Delhi has not cared to
submit the report. A reminder be sent through the Registrar
(Appellate) of this Court. The reports of MACT (East), MACT
(South-West), MACT (South East) and ASJ, Fast Track Court
are complete. All other Claims Tribunals are directed to
submit their complete report through Registrar (Appellate)
within four weeks. The Claims Tribunals shall also calculate
the interest up to the date of release of the award amount to
the claimant. The Additional District Judges/Additional
Sessions Judges handling MACT cases are also directed to
th
send their report in compliance of the order dated 27
January, 2010 within four weeks. The Reports of the Claims
Tribunals be submitted before the Registrar (Appellate) and
be placed on record along with the comments of the
Registrar (Vigilance).
All the Claims Tribunals are also directed to prepare the
separate lists for each Insurance company and the interest
MAC.APP.No.422/2009 Page 8 of 21
amount of each Insurance company shall be calculated. The
st
list be prepared separately for two periods first from 1
th
January, 2009 to 12 July, 2009 and the second from the
th
period 13 July, 2009 till date. The aforesaid lists be
submitted before this Court within four weeks through
Registrar (Appellate) of this Court.
3. Ms. Anjali Bansal, Advocate has filed the status reports
on behalf of Tata AIG General Insurance Co. Ltd. and Bharti
AXA General Insurance Co. Ltd., which are taken on record.
Tata AIG General Insurance Co. Ltd. has filed the data of all
the awards passed in the last one year. It is stated that in all
the cases, the claimants have been informed about the
deposit of the award amount simultaneously upon the
deposit. Bharti AXA General Insurance has stated in their
affidavit that no award has been passed against them in NCR
of Delhi in the last one year but the company shall follow
Order XXI Rule 1 of the Code of Civil Procedure. With respect
to the Future Generali Insurance Co. Ltd., Ms. Bansal submits
that one award was passed in respect of which cheque
deposited with the Claims Tribunal was cleared within one
month and the Company agrees to follow Order XXI Rule 1 of
the Code of Civil Procedure.
4. Mr. Sunil Kapoor, counsel for HDFC ERGO General
Insurance Co. Ltd. submits that the Company had been
intimating the Counsel for the claimants while depositing the
award amount. Mr. Kapoor submits that the Company agrees
MAC.APP.No.422/2009 Page 9 of 21
to follow Order XXI Rule 1 of the Code of Civil Procedure
while depositing the award amount in future. Mr. Kapoor
further submits that the aforesaid Insurance company is
prepared to give notice of deposit to the claimants’ counsel,
which should be taken as sufficient compliance of the
provisions of Order XXI Rule 1 of the Code of Civil Procedure.
5. Mr. S.L. Gupta on behalf of National Insurance Co. Ltd.
submits that he has instructions to state that National
Insurance Co. Ltd. shall comply with the provisions of Order
XXI Rule 1 of the Code of Civil Procedure while depositing the
award amount in future. However, with respect to the
th
affidavit to be filed in terms of order dated 27 January,
2010, Mr. Gupta seeks two weeks time to file the affidavit
before this Court. Mr. Gupta submits that National Insurance
Co. Ltd. is prepared to serve the notice of deposit on the
claimant’s counsel under Order XXI Rule 1 of the Code of
Civil Procedure. Mr. Gupta further points out that officers of
National Insurance Co. Ltd. are present in Court and the
statement has been made on their instructions.
6. Ms. Adarsh Sabharwal, Advocate submits that Raheja
QBE General Insurance Co. Ltd. is a new company and no
award has been passed against the said company till now.
The counsel further submits that she has filed an affidavit in
this regard in which it has been stated that the company
shall comply with the directions of this Court with regard to
Order XXI Rule 1 of the Code of Civil Procedure.
MAC.APP.No.422/2009 Page 10 of 21
7. Mr. Pankaj Seth, Advocate for Universal Sompo General
Insurance Co. Ltd. submits that no award has been passed
against this company till now. However, the Company
agrees to comply with the Order XXI Rule 1 of the Code of
Civil Procedure in future. Mr. Pankaj Seth, Advocate also
appears on behalf of Reliance General Insurance Co. Ltd. and
Royal Sundaram Alliance Insurance Co. Ltd. and submits that
the relevant data and affidavit in compliance of order dated
th
27 January, 2010 shall be filed within four weeks and the
said Insurance companies shall serve the notice of deposit on
the claimants through Court and shall pay interest up to date
of deposit.
8. Mr. Atul Nanda, learned counsel for ICICI Lombard
General Insurance Co. Ltd. and Bajaj Allianz General
Insurance Co. Ltd., vehemently argued that Order XXI Rule 1
of the Code of Civil Procedure is not at all applicable to motor
accident claim cases. The counsel further submitted that
although the Hon’ble Supreme Court in the case of
Rajasthan State Corporation, Jaipur Vs. Poonam
Pahwa, 1997, ACJ 1049 has held that the principle of Order
XXI Rule 1 of the Code of Civil Procedure is applicable to the
motor accident cases but Order XXI Rule 1 of the Code of
Civil Procedure is not applicable to the motor accident claim
cases and, therefore, the Insurance companies cannot be
compelled to comply with Order XXI Rule 1 of the Code of the
Civil Procedure. Mr. Nanda then referred to Section 168(3) of
MAC.APP.No.422/2009 Page 11 of 21
the Motor Vehicles Act, 1988 to contend that the award
amount has to be deposited with the Claims Tribunals in
terms of their award but since the Claims Tribunals have not
passed any direction requiring the notice to be given, the
Insurance companies are not liable to give any notice of
deposit. Mr. Nanda further submitted that the default, if at
all, is on the part of the Claims Tribunals in not issuing the
notice of deposit and not on the part of the Insurance
companies. Upon the specific query of the Court as to his
stand in view of the Rules 31 and 32 of Delhi Motor Accidents
Claims Tribunal Rules, 2008, which provides that the Claims
Tribunals shall have all the powers of the Civil Court for
execution of the decree, Mr. Nanda conceded that Order XXI
Rule 1 of the Code of Civil Procedure is applicable to motor
th
accident claim cases w.e.f. 13 July, 2009 when Delhi Motor
Accidents Claims Tribunal Rules, 2008 came into force. Mr.
Nanda finally admitted that he has instructions from his
clients to make a statement that in future, his clients shall
give notice of deposit to the claimants in order to streamline
the system. With respect to the compliance of the order
th
dated 27 January, 2010, Mr. Nanda sought clarification of
th
para 18 of the Order dated 27 January, 2010 where
th
reference has been made to the directions dated 9 July,
th
1997. This Court has referred to the directions dated 9
th
December, 2005 in para 18 of the order dated 27 January,
th
2010 but inadvertently the date has been mentioned as 9
MAC.APP.No.422/2009 Page 12 of 21
th
July, 1997 instead of 9 December, 2005 in the case of New
India Assurance Company Ltd. Vs. Kashmiri Lal, 2007
th
ACJ 688 . The date of 9 July, 1997 in para 18 of the order
th th
dated 27 January, 2010 is corrected and be read as 9
December, 2005.
9. Mr. Kanwal Choudhary on behalf of New India Insurance
Company submits that the relevant data and affidavit in
th
compliance of order dated 27 January, 2010 shall be filed
within four weeks. Mr. Choudhary further submits that New
India Assurance Co. Ltd. shall serve the notice on the
claimants through Court and shall pay interest up to the date
of deposit.
10. Ms. Manjusha Wadhwa on behalf of Oriental Insurance
Co. Ltd. submits that the relevant data and affidavit in
th
compliance of order dated 27 January, 2010 shall be filed
within four weeks.
11. Mr. K.L. Nandwani, Advocate appears on behalf of
United Insurance Co. Ltd. and submits that United India
Insurance Co. Ltd. agrees to give notice of deposit to the
claimants through Court. Mr. Harish Arora, Deputy Manager
and Mr. Sanjeev Negi, Administrative Officer submits that the
affidavit/ data shall be filed positively within four weeks.
12. Ms. Suman Bagga, Advocate on behalf of
Cholamandalam MS General Insurance Co. Ltd., submits that
the relevant data and affidavit in compliance of order dated
th
27 January,2010 shall be filed within four weeks and the
MAC.APP.No.422/2009 Page 13 of 21
Insurance Company shall serve the notice on the claimants
through Court and shall pay interest up to date of deposit.
13. Ms. Shantha Devi Raman Advocate on behalf of IFFCO
Tokyo General Insurance Co. Ltd., submits that the relevant
th
data and affidavit in compliance of order dated 27 January,
2010 shall be filed within four weeks and the Insurance
Company shall serve the notice on the claimants through
Court and shall pay interest up to date of deposit.
14. All the Insurance companies are directed to file their
th
status report and affidavit in terms of order dated 27
January, 2010 within a period of four weeks with advance
copy to the learned Amicus Curiae. The General Managers of
all the Insurance companies shall remain present in Court on
the next date of hearing.
15. Section 168(3) of the Motor Vehicles Act, 1988
empowers the Claims Tribunals to direct the deposit of the
award amount in such manner as it may direct. Section
168(3) is reproduced hereunder:-
“Section 168 Award of the Claims
Tribunal. –
(3) When an award is made under this
section, the person who is required to pay
any amount in terms of such award shall,
within thirty days of the date of announcing
the award by the Claims Tribunal, deposit
the entire amount awarded in such manner
as the Claims Tribunal may direct.”
16. The Hon’ble Supreme Court in the case of Rajasthan
State Corporation, Jaipur Vs. Poonam Pahwa (Supra),
MAC.APP.No.422/2009 Page 14 of 21
has clearly held that Order XXI Rule 1 of the Code of Civil
Procedure is applicable to Motor Accident Claims. Delhi Motor
Accidents Claims Tribunal Rules, 2008 came into force on
th
13 July, 2009. Rule 31 provides that the Claims Tribunals
shall have all the powers of the Civil Court in execution of a
decree under Code of Civil Procedure as if the award was a
decree passed by a Civil Court. Rule 32 further provides that
the Claims Tribunal shall exercise all the powers of the Civil
Court. Rules 31 and 32 are reproduced hereunder:-
“31. Enforcement of award of the
Claims Tribunal -
Subject to the provisions of section 174 of
the Act, the Claims Tribunal shall, for the
purpose of enforcement of its award, have
all the powers of a Civil Court in the
execution of a decree under the Code of Civil
Procedure,1908(5 of 1908), as if the award
where a decree for the payment of money
passed by such court in a civil suit.
32. Vesting of powers of Civil Court in
the Claims Tribunal –
Without prejudice to the provisions of section
169 of the Act every Claims Tribunal shall
exercise all the powers of a Civil Court, and
in doing so for discharging its functions it
shall follow the procedure laid down in the
Code of Civil Procedure, 1908(5 of 1908).”
17. From the interim reports of the Claims Tribunals, it is
clear that there has been gross miscarriage of justice and
grave injustice has been caused to the claimants as no notice
of deposit has been given to the claimants either by the
Insurance Companies or by the Claims Tribunals. The record
MAC.APP.No.422/2009 Page 15 of 21
of the Nazirs have not been maintained according to the date
of the award. The Nazirs enter the cheque deposited in such
a manner that the deposit cannot be easily traced out. If a
person has to check whether the payment has been
th
deposited in respect of award passed on 10 January, 2009,
th
he has to check all the entries from 10 January, 2009 upto
date. As a result, a large number of cheques deposited with
the Claims Tribunals have lapsed. In respect of one of the
Claims Tribunal, 2020 cheques deposited with it have
expired. No action has been taken by the Claims Tribunals in
respect of lapsed cheques. The Claims Tribunals have also
not followed the directions of this Court in the case of New
India Assurance Company Ltd. Vs. Kashmiri Lal, 2007
ACJ 688 . It appears that the Claims Tribunals, Insurance
companies and claimants were all ignorant of the correct
legal position, but ignorance of law is no defence. The victims
of the road accidents suffer first, because of the road
accident, then, due to delay in the inquiry and thirdly, even
after passing the award, no notice of deposit is given by the
Insurance company or by the Claims Tribunal. The non-
compliance of law by the Insurance companies has caused
irreparable damage, harassment, delay and injustice to the
claimants. There is not even an iota of remorse by any
Insurance company. Though the Insurance companies have
now agreed to comply with Order XXI Rule 1 of the Code of
Civil Procedure in future but they insist to pay interest only
MAC.APP.No.422/2009 Page 16 of 21
till date of deposit and not till notice of deposit, meaning
thereby, that even while admitting applicability of Order XXI
rule 1 of the Code of Civil Procedure, the Insurance
companies are still not willing to gracefully comply with the
law. Be that as it may, in view of undertaking of the
Insurance companies to comply with Order XXI Rule 1 of the
Code of Civil Procedure read with Rules 31 and 32 of the
Delhi Motor Accident Claims Tribunal Rules, 2008, the
following interim directions are issued to the Claims Tribunals
for streamlining the system:-
(i) Before or at the time of passing of the award, the
Claims Tribunals shall examine the claimants to
ascertain their financial condition and needs and shall
pass an order with regard to their share, mode of
disbursement, amount to be kept in fixed deposit and
period of fixed deposit according to the financial
condition of the claimants. (It has been noticed that, in
many cases, the Tribunals have been passing the
standard orders of disbursement and fixed deposits
without examining the financial condition and needs of
the claimants and the poor victims are left at the mercy
of either accepting the order or again engaging the
counsel to approach the Court for modification).
(ii) At the time of examining the Claimants, the
Claims Tribunals shall also ascertain the complete
address of the claimants as well as their counsel. In the
award, the Claims Tribunals shall specifically direct the
Insurance company and/or the owner/driver, as the
case may be, to deposit the award amount with the
Tribunal and/or the Bank along with the interest upto
MAC.APP.No.422/2009 Page 17 of 21
the date of notice of deposit to the claimants with a
copy to their counsel. The names and addresses of the
claimants and their counsel for issuance of notice of
deposit be mentioned in the award.
(iii) If the award amount has been directed to be
deposited by the Insurance Company with the bank,
copy of the award be sent to the Nodal Officer of the
Bank along with the Court stamped copy of the
photographs and signatures of the claimants. The
photographs and signatures of the claimants be taken
at the time of examining them before or at the time of
passing the award. Two sets of photographs and
signatures should be taken, out of which one set should
be sent to the Nodal Officer of the Bank along with the
copy of the award and the second set should be
retained in the Court record for future reference and/or
any irregularity being pointed out. (The forwarding of
the Court stamped photographs and the signatures of
the claimants would ensure that no attempt is made to
defraud the system). If possible, the proof of residence
and the details of the Bank Account should also be
collected from the claimant at the time of examining
them and one stamped set of the same should also be
forwarded to the Bank and the second set be retained
in the Court record.
(iv) The Claims Tribunal shall fix a date for reporting
compliance in the award itself. The Claims Tribunals
shall also direct the Insurance Company and/or driver
or owner to place on record the proof of deposit of the
award amount, the notice of deposit and the calculation
of interest on the date fixed. Upon such proof being
filed, the Claims Tribunal shall ensure that the interest
upto date of notice of deposit has been deposited by all
concerned.
MAC.APP.No.422/2009 Page 18 of 21
(v) If the award amount is not deposited within the
time provided in the award, the Claims Tribunals shall
proceed to recover/execute the award in terms of the
directions of this Court in the case of New India
Assurance Company Ltd. Vs. Kashmiri Lal, 2007
ACJ 688 .
(vi) The record of all the awards passed by the Claims
Tribunals shall be maintained by the Nazirs in
chronological order according to the date of the award
in such a manner that it is easy for the Nazir as well as
the enquiring litigants/lawyers to ascertain whether the
payment of their award has been received or not. The
following can be considered as a format:-
a) Date of award
b) Case number
c) Title of the case
d) Award amount
e) Date of deposit of the award amount
f) Date of notice of deposit by the depositor.
g) Date of notice of deposit by the Tribunal.
h) Amount of interest upto date of notice of
deposit.
i) Whether award amount and complete
interest deposited.
j) Balance outstanding interest.
k) Remarks (Action taken to recover the
balance interest)
(vii) In all pending execution cases, the Claims
Tribunals shall follow the directions of this Court in New
India Assurance Company Ltd. Vs. Kashmiri Lal
(supra). The Claims Tribunals shall direct all the
Insurance Companies to provide the name of Banker
and their Account number within ten days.
(viii) In respect of pending cheques, the Claims
Tribunal shall forthwith issue the notice of deposit to
the claimants as well as their counsels.
MAC.APP.No.422/2009 Page 19 of 21
(ix) In respect of the expired cheques, the Claims
Tribunal shall also forthwith issue notice to the
Insurance Companies with direction to deposit fresh
cheques within 30 days.
18. The final order/directions shall be passed on the next
date of hearing after examining the final Status Reports of
the Claims Tribunals and the Insurance companies in terms
of the order dated 27th January, 2010 and after hearing all
the parties. The Claims Tribunals and all the Insurance
Companies shall submit their response to the aforesaid
interim directions and further suggestions, which shall be
considered on the next date of hearing. In the meantime, the
Claims Tribunals shall implement Rules 31 and 32 of Delhi
Motor Accident Claims Tribunal Rules, 2008 read with Order
XXI Rule 1 of the Code of Civil Procedure, the directions
passed by this Court in New India Assurance Company
Ltd. Vs. Kashmiri Lal (supra) and the aforesaid interim
directions. The action taken report in this regard be filed by
all the Claims Tribunals through the Registrar (Appellate)
before the next date of hearing.
th
19. List for hearing on 6 April, 2010 at 12.30 pm.
20. Copy of this order be sent to the Registrar (Vigilance),
Registrar (Appellate) and the Principal District and Sessions
Judge for communication to and compliance by all
concerned.
MAC.APP.No.422/2009 Page 20 of 21
21. Copy of this order be given Dasti to counsels for the
parties, learned Amicus Curiae as well as to the nominated
counsels of all the Insurance Companies.
th
22. Copy of the order dated 27 January, 2010 and this
order be also sent to Mr. S. Sundar, Chairman of the Expert
Committee constituted by the Ministry of Road Transport and
Highways, Government of India.
J.R. MIDHA, J
FEBRUARY 23, 2010
HL
MAC.APP.No.422/2009 Page 21 of 21
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ MAC.APP.No.422/2009
rd
Date of Decision: 23 February, 2010
%
SOBAT SINGH ..... Appellant
Through: Mr. Kishan Nautiyal, Advocate.
versus
RAMESH CHANDRA GUPTA & ANR. ..... Respondents
Through: Mr. Atul Nanda, Ms. Rameeza,
Mr.Sumeer and Ms. Sugandha,
Advocates for Bajaj Allianz General
Insurance Co. Ltd. with Mr. Sanjay
Gupta, Manager.
Mr. Atul Nanda, Ms. Rameeza,
Mr.Sumeer and Ms. Sugandha,
Advocates for ICICI Lombard General
Insurance Co. Ltd. with Mr.Gaurab
Gaba, Manager.
Ms. Manjusha Wadhwa and Ms. Harsh
Lata, Advocates for Oriental Insurance
Company Limited.
Ms. Anjali Bansal, Advocate for Tata
AIG General Insurance Co. Ltd., Bharti
AXA General Insurance Co. Ltd. and
Future Generali India Insurance Co.
Ltd.
Mr. Sunil Kapoor and Mr. Anuraj
Sharma, Advocates for HDFC ERGO
General Insurance Co. Ltd.
Mr. S.L. Gupta, Advocate for National
Insurance Company with Mr. Santosh
K. Sood, Manager, DRO-I and Mr. N.
Wadhwan, Asst. Manager, DRO-II.
Ms. Adarsh Sabharwal, Adv. for
Raheja QBE General Insurance Co.
Ltd.
Ms. Shantha Devi Raman with Mr.
Amit Maihen, Advocates for IFFCO
Tokyo General Insurance Co. Ltd.
Mr.Pankaj Seth, Advocate for Reliance
General Insurance Co. Ltd., Universal
Sompo General Insurance co. Ltd. and
Royal Sundaram Alliance Insurance
Co.Ltd.
Mr. Kanwal Choudahary, Adv. for R-2.
MAC.APP.No.422/2009 Page 1 of 21
Mr. K.L. Nandwani, Advocate for United
Insurance Company with Mr. Harish
Choudhary, Deputy Manager and Mr.
Sanjeev Negi, Admn. Officer.
Mr. O.P. Mannie, Amicus Curiae.
Ms. Suman Bagga, Advocate for
Cholamandalam MS General Insurance
Co. Ltd.
CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA
1. Whether Reporters of Local papers may YES
be allowed to see the Judgment?
2. To be referred to the Reporter or not? YES
3. Whether the judgment should be YES
reported in the Digest?
JUDGMENT (Oral)
th
1. In terms of order dated 27 January, 2010, the
following Claims Tribunals have submitted their interim
reports:-
(i) Report of MACT (Central)
The MACT (Central) has submitted the interim
report and has sought two months time to furnish the
complete information. In the interim report, it is stated
that 2092 cheques are pending with the Nazir out of
which 2020 cheques have lapsed. The table containing
the details of 242 cases has been furnished but in all
the cases, neither the Insurance Companies nor the
Claims Tribunal have given notice of deposit of the
award amount to the claimants. The Claims Tribunal
has not calculated the period and amount of interest.
The recovery has been effected by attachment of bank
MAC.APP.No.422/2009 Page 2 of 21
accounts of the Insurance companies in six cases. The
directions of this Court in the case of New India
Assurance Company Ltd. Vs. Kashmiri Lal, 2007
ACJ 688 with respect to the cost of Rs.5000/- have not
been followed.
(ii) Report of MACT (South)
The MACT (South) has submitted the interim
report and has sought one month time to furnish the
complete information. It is stated that 536 cheques
were deposited in last one year, out of which 426
cheques have been released and 110 cheques are
pending out of which 73 cheques have lapsed. The
table containing the details of 461 cases has been
furnished but in all the cases, neither the Insurance
Companies nor the Claims Tribunal have given notice of
deposit of the award amount to the claimants. The
Claims Tribunal has not calculated the period and
amount of interest. The directions of this Court in the
case of New India Assurance Company Ltd. Vs.
Kashmiri Lal (supra) have not been followed.
(iii) Report of MACT (East)
The MACT (East) has reported that 99 cheques are
pending with Claims Tribunal out of which 48 cheques
have lapsed. Out of the 202 cases in the last one year,
the notice of deposit has not been given to the
MAC.APP.No.422/2009 Page 3 of 21
claimants either by the Insurance Company or by the
Claims Tribunal. The amount of interest under Order
XXI Rule 1 during the last one year has been computed.
The directions of this Court in the case of New India
Assurance Company Ltd. Vs. Kashmiri Lal (supra)
have not been followed.
(iv) Report of MACT (South-West), Dwarka
The MACT (South-West) has submitted the interim
report and has sought 15 days time to furnish the
complete information. In the interim report, it is stated
that 65 cheques are pending for release and 42
cheques have lapsed during the last year. The table
containing the details of the cases has been furnished
but in all the cases, neither the Insurance Companies
nor the Claims Tribunal have given notice of deposit of
the award amount to the claimants. The Claims
Tribunal has calculated the period and amount of
interest. The directions of this Court in the case of
New India Assurance Company Ltd. Vs. Kashmiri
Lal (supra) have not been followed.
(v) Report of MACT (North)
The MACT (North) has submitted the interim
report and has sought one month time to furnish the
complete information. It is stated that 132 cheques are
lying deposited for being released and 16 cheques have
MAC.APP.No.422/2009 Page 4 of 21
lapsed during the last year. The table containing the
details of 331 cases has been furnished but in all the
cases, neither the Insurance Companies nor the Claims
Tribunal have given notice of deposit of the award
amount to the claimants. The Claims Tribunal has not
calculated the period and amount of interest. The
recovery has been effected by attachment of bank
accounts of the Insurance companies in four cases. The
directions of this Court in the case of New India
Assurance Company Ltd. Vs. Kashmiri Lal (supra)
with respect to the cost of Rs.5,000/- have not been
followed.
(vi) Report of MACT (West)
The MACT (West) has submitted the interim report
and has sought one month time to furnish the complete
information. In the interim report, it is stated that 353
cheques are lying deposited out of which 153 cheques
have lapsed. The table containing the details of the
cases has been furnished but in all the cases, neither
the Insurance Companies nor the Claims Tribunal have
given notice of deposit of the award amount to the
claimants. The Claims Tribunal has not calculated the
period and amount of interest. The directions of this
Court in the case of New India Assurance Company
Ltd. Vs. Kashmiri Lal (supra) have not been followed.
MAC.APP.No.422/2009 Page 5 of 21
(vii) Report of MACT (South-East)
The MACT (South-East) has submitted its report in
which it is stated that 441 cheques were deposited out
of which 404 cheques have been released and 15
cheques have lapsed. The table containing the details
of the cases has been furnished but in all the cases,
neither the Insurance Companies nor the Claims
Tribunal have given notice of deposit of the award
amount to the claimants. The Claims Tribunal has
calculated the period and amount of interest. With
respect to the directions of this Court in the case of
New India Assurance Company Ltd. Vs. Kashmiri
Lal (supra), it is reported that cost of Rs.5000/- has
been imposed in three cases.
(viii) Report of MACT (North-East)
The MACT (North-East) has submitted the report
in which it is stated that 40 cheques are lying deposited
for being released and 115 cheques have lapsed during
the last year. The table containing the details of 284
cases has been furnished but in all the cases neither
the Insurance Companies nor the Claims Tribunal have
given notice of deposit of the award amount to the
claimants. The Claims Tribunal has not calculated the
period and amount of interest. The directions of this
Court in the case of New India Assurance Company
Ltd. Vs. Kashmiri Lal (supra) have not been followed.
MAC.APP.No.422/2009 Page 6 of 21
(ix) Report of MACT (North-West)
The MACT (North-West) has submitted its report
and stated that cheques are pending for being released
in 56 cases and 70 cheques have lapsed during last
year. The table containing the details of 135 cases has
been furnished but no information regarding notice of
deposit of the award amount to the claimants has been
given. The Claims Tribunal has not calculated the
period and amount of interest. The directions of this
Court in the case of New India Assurance Company
Ltd. Vs. Kashmiri Lal (supra) have not been followed.
(x) Report of MACT (Outer)
The MACT (Outer) has submitted its report and
stated that 55 cheques are pending for release and 33
cheques have lapsed during the last year. The table
containing the details of the cases has been furnished
but in all the cases, neither the Insurance Companies
nor the Claims Tribunal have given notice of deposit of
the award amount to the claimants. The Claims
Tribunal has not calculated the period and amount of
interest. The recovery has been effected by attachment
of bank accounts of the Insurance companies in two
cases. The directions of this Court in the case of New
India Assurance Company Ltd. Vs. Kashmiri Lal
(supra) have not been followed.
MAC.APP.No.422/2009 Page 7 of 21
(xi) Report of ASJ, Fast Track Court (West)
The ASJ, Fast Track Court (West) has submitted its
report and stated that 4 cheques are pending for being
released and no cheque has lapsed. The table
containing the details of 20 cases has been furnished
but in all the cases neither the Insurance Company nor
the Court have given notice of deposit of the award
amount to the claimants. The Court has calculated the
period and amount of interest.
2. The Presiding Officer, MACT-New Delhi has not cared to
submit the report. A reminder be sent through the Registrar
(Appellate) of this Court. The reports of MACT (East), MACT
(South-West), MACT (South East) and ASJ, Fast Track Court
are complete. All other Claims Tribunals are directed to
submit their complete report through Registrar (Appellate)
within four weeks. The Claims Tribunals shall also calculate
the interest up to the date of release of the award amount to
the claimant. The Additional District Judges/Additional
Sessions Judges handling MACT cases are also directed to
th
send their report in compliance of the order dated 27
January, 2010 within four weeks. The Reports of the Claims
Tribunals be submitted before the Registrar (Appellate) and
be placed on record along with the comments of the
Registrar (Vigilance).
All the Claims Tribunals are also directed to prepare the
separate lists for each Insurance company and the interest
MAC.APP.No.422/2009 Page 8 of 21
amount of each Insurance company shall be calculated. The
st
list be prepared separately for two periods first from 1
th
January, 2009 to 12 July, 2009 and the second from the
th
period 13 July, 2009 till date. The aforesaid lists be
submitted before this Court within four weeks through
Registrar (Appellate) of this Court.
3. Ms. Anjali Bansal, Advocate has filed the status reports
on behalf of Tata AIG General Insurance Co. Ltd. and Bharti
AXA General Insurance Co. Ltd., which are taken on record.
Tata AIG General Insurance Co. Ltd. has filed the data of all
the awards passed in the last one year. It is stated that in all
the cases, the claimants have been informed about the
deposit of the award amount simultaneously upon the
deposit. Bharti AXA General Insurance has stated in their
affidavit that no award has been passed against them in NCR
of Delhi in the last one year but the company shall follow
Order XXI Rule 1 of the Code of Civil Procedure. With respect
to the Future Generali Insurance Co. Ltd., Ms. Bansal submits
that one award was passed in respect of which cheque
deposited with the Claims Tribunal was cleared within one
month and the Company agrees to follow Order XXI Rule 1 of
the Code of Civil Procedure.
4. Mr. Sunil Kapoor, counsel for HDFC ERGO General
Insurance Co. Ltd. submits that the Company had been
intimating the Counsel for the claimants while depositing the
award amount. Mr. Kapoor submits that the Company agrees
MAC.APP.No.422/2009 Page 9 of 21
to follow Order XXI Rule 1 of the Code of Civil Procedure
while depositing the award amount in future. Mr. Kapoor
further submits that the aforesaid Insurance company is
prepared to give notice of deposit to the claimants’ counsel,
which should be taken as sufficient compliance of the
provisions of Order XXI Rule 1 of the Code of Civil Procedure.
5. Mr. S.L. Gupta on behalf of National Insurance Co. Ltd.
submits that he has instructions to state that National
Insurance Co. Ltd. shall comply with the provisions of Order
XXI Rule 1 of the Code of Civil Procedure while depositing the
award amount in future. However, with respect to the
th
affidavit to be filed in terms of order dated 27 January,
2010, Mr. Gupta seeks two weeks time to file the affidavit
before this Court. Mr. Gupta submits that National Insurance
Co. Ltd. is prepared to serve the notice of deposit on the
claimant’s counsel under Order XXI Rule 1 of the Code of
Civil Procedure. Mr. Gupta further points out that officers of
National Insurance Co. Ltd. are present in Court and the
statement has been made on their instructions.
6. Ms. Adarsh Sabharwal, Advocate submits that Raheja
QBE General Insurance Co. Ltd. is a new company and no
award has been passed against the said company till now.
The counsel further submits that she has filed an affidavit in
this regard in which it has been stated that the company
shall comply with the directions of this Court with regard to
Order XXI Rule 1 of the Code of Civil Procedure.
MAC.APP.No.422/2009 Page 10 of 21
7. Mr. Pankaj Seth, Advocate for Universal Sompo General
Insurance Co. Ltd. submits that no award has been passed
against this company till now. However, the Company
agrees to comply with the Order XXI Rule 1 of the Code of
Civil Procedure in future. Mr. Pankaj Seth, Advocate also
appears on behalf of Reliance General Insurance Co. Ltd. and
Royal Sundaram Alliance Insurance Co. Ltd. and submits that
the relevant data and affidavit in compliance of order dated
th
27 January, 2010 shall be filed within four weeks and the
said Insurance companies shall serve the notice of deposit on
the claimants through Court and shall pay interest up to date
of deposit.
8. Mr. Atul Nanda, learned counsel for ICICI Lombard
General Insurance Co. Ltd. and Bajaj Allianz General
Insurance Co. Ltd., vehemently argued that Order XXI Rule 1
of the Code of Civil Procedure is not at all applicable to motor
accident claim cases. The counsel further submitted that
although the Hon’ble Supreme Court in the case of
Rajasthan State Corporation, Jaipur Vs. Poonam
Pahwa, 1997, ACJ 1049 has held that the principle of Order
XXI Rule 1 of the Code of Civil Procedure is applicable to the
motor accident cases but Order XXI Rule 1 of the Code of
Civil Procedure is not applicable to the motor accident claim
cases and, therefore, the Insurance companies cannot be
compelled to comply with Order XXI Rule 1 of the Code of the
Civil Procedure. Mr. Nanda then referred to Section 168(3) of
MAC.APP.No.422/2009 Page 11 of 21
the Motor Vehicles Act, 1988 to contend that the award
amount has to be deposited with the Claims Tribunals in
terms of their award but since the Claims Tribunals have not
passed any direction requiring the notice to be given, the
Insurance companies are not liable to give any notice of
deposit. Mr. Nanda further submitted that the default, if at
all, is on the part of the Claims Tribunals in not issuing the
notice of deposit and not on the part of the Insurance
companies. Upon the specific query of the Court as to his
stand in view of the Rules 31 and 32 of Delhi Motor Accidents
Claims Tribunal Rules, 2008, which provides that the Claims
Tribunals shall have all the powers of the Civil Court for
execution of the decree, Mr. Nanda conceded that Order XXI
Rule 1 of the Code of Civil Procedure is applicable to motor
th
accident claim cases w.e.f. 13 July, 2009 when Delhi Motor
Accidents Claims Tribunal Rules, 2008 came into force. Mr.
Nanda finally admitted that he has instructions from his
clients to make a statement that in future, his clients shall
give notice of deposit to the claimants in order to streamline
the system. With respect to the compliance of the order
th
dated 27 January, 2010, Mr. Nanda sought clarification of
th
para 18 of the Order dated 27 January, 2010 where
th
reference has been made to the directions dated 9 July,
th
1997. This Court has referred to the directions dated 9
th
December, 2005 in para 18 of the order dated 27 January,
th
2010 but inadvertently the date has been mentioned as 9
MAC.APP.No.422/2009 Page 12 of 21
th
July, 1997 instead of 9 December, 2005 in the case of New
India Assurance Company Ltd. Vs. Kashmiri Lal, 2007
th
ACJ 688 . The date of 9 July, 1997 in para 18 of the order
th th
dated 27 January, 2010 is corrected and be read as 9
December, 2005.
9. Mr. Kanwal Choudhary on behalf of New India Insurance
Company submits that the relevant data and affidavit in
th
compliance of order dated 27 January, 2010 shall be filed
within four weeks. Mr. Choudhary further submits that New
India Assurance Co. Ltd. shall serve the notice on the
claimants through Court and shall pay interest up to the date
of deposit.
10. Ms. Manjusha Wadhwa on behalf of Oriental Insurance
Co. Ltd. submits that the relevant data and affidavit in
th
compliance of order dated 27 January, 2010 shall be filed
within four weeks.
11. Mr. K.L. Nandwani, Advocate appears on behalf of
United Insurance Co. Ltd. and submits that United India
Insurance Co. Ltd. agrees to give notice of deposit to the
claimants through Court. Mr. Harish Arora, Deputy Manager
and Mr. Sanjeev Negi, Administrative Officer submits that the
affidavit/ data shall be filed positively within four weeks.
12. Ms. Suman Bagga, Advocate on behalf of
Cholamandalam MS General Insurance Co. Ltd., submits that
the relevant data and affidavit in compliance of order dated
th
27 January,2010 shall be filed within four weeks and the
MAC.APP.No.422/2009 Page 13 of 21
Insurance Company shall serve the notice on the claimants
through Court and shall pay interest up to date of deposit.
13. Ms. Shantha Devi Raman Advocate on behalf of IFFCO
Tokyo General Insurance Co. Ltd., submits that the relevant
th
data and affidavit in compliance of order dated 27 January,
2010 shall be filed within four weeks and the Insurance
Company shall serve the notice on the claimants through
Court and shall pay interest up to date of deposit.
14. All the Insurance companies are directed to file their
th
status report and affidavit in terms of order dated 27
January, 2010 within a period of four weeks with advance
copy to the learned Amicus Curiae. The General Managers of
all the Insurance companies shall remain present in Court on
the next date of hearing.
15. Section 168(3) of the Motor Vehicles Act, 1988
empowers the Claims Tribunals to direct the deposit of the
award amount in such manner as it may direct. Section
168(3) is reproduced hereunder:-
“Section 168 Award of the Claims
Tribunal. –
(3) When an award is made under this
section, the person who is required to pay
any amount in terms of such award shall,
within thirty days of the date of announcing
the award by the Claims Tribunal, deposit
the entire amount awarded in such manner
as the Claims Tribunal may direct.”
16. The Hon’ble Supreme Court in the case of Rajasthan
State Corporation, Jaipur Vs. Poonam Pahwa (Supra),
MAC.APP.No.422/2009 Page 14 of 21
has clearly held that Order XXI Rule 1 of the Code of Civil
Procedure is applicable to Motor Accident Claims. Delhi Motor
Accidents Claims Tribunal Rules, 2008 came into force on
th
13 July, 2009. Rule 31 provides that the Claims Tribunals
shall have all the powers of the Civil Court in execution of a
decree under Code of Civil Procedure as if the award was a
decree passed by a Civil Court. Rule 32 further provides that
the Claims Tribunal shall exercise all the powers of the Civil
Court. Rules 31 and 32 are reproduced hereunder:-
“31. Enforcement of award of the
Claims Tribunal -
Subject to the provisions of section 174 of
the Act, the Claims Tribunal shall, for the
purpose of enforcement of its award, have
all the powers of a Civil Court in the
execution of a decree under the Code of Civil
Procedure,1908(5 of 1908), as if the award
where a decree for the payment of money
passed by such court in a civil suit.
32. Vesting of powers of Civil Court in
the Claims Tribunal –
Without prejudice to the provisions of section
169 of the Act every Claims Tribunal shall
exercise all the powers of a Civil Court, and
in doing so for discharging its functions it
shall follow the procedure laid down in the
Code of Civil Procedure, 1908(5 of 1908).”
17. From the interim reports of the Claims Tribunals, it is
clear that there has been gross miscarriage of justice and
grave injustice has been caused to the claimants as no notice
of deposit has been given to the claimants either by the
Insurance Companies or by the Claims Tribunals. The record
MAC.APP.No.422/2009 Page 15 of 21
of the Nazirs have not been maintained according to the date
of the award. The Nazirs enter the cheque deposited in such
a manner that the deposit cannot be easily traced out. If a
person has to check whether the payment has been
th
deposited in respect of award passed on 10 January, 2009,
th
he has to check all the entries from 10 January, 2009 upto
date. As a result, a large number of cheques deposited with
the Claims Tribunals have lapsed. In respect of one of the
Claims Tribunal, 2020 cheques deposited with it have
expired. No action has been taken by the Claims Tribunals in
respect of lapsed cheques. The Claims Tribunals have also
not followed the directions of this Court in the case of New
India Assurance Company Ltd. Vs. Kashmiri Lal, 2007
ACJ 688 . It appears that the Claims Tribunals, Insurance
companies and claimants were all ignorant of the correct
legal position, but ignorance of law is no defence. The victims
of the road accidents suffer first, because of the road
accident, then, due to delay in the inquiry and thirdly, even
after passing the award, no notice of deposit is given by the
Insurance company or by the Claims Tribunal. The non-
compliance of law by the Insurance companies has caused
irreparable damage, harassment, delay and injustice to the
claimants. There is not even an iota of remorse by any
Insurance company. Though the Insurance companies have
now agreed to comply with Order XXI Rule 1 of the Code of
Civil Procedure in future but they insist to pay interest only
MAC.APP.No.422/2009 Page 16 of 21
till date of deposit and not till notice of deposit, meaning
thereby, that even while admitting applicability of Order XXI
rule 1 of the Code of Civil Procedure, the Insurance
companies are still not willing to gracefully comply with the
law. Be that as it may, in view of undertaking of the
Insurance companies to comply with Order XXI Rule 1 of the
Code of Civil Procedure read with Rules 31 and 32 of the
Delhi Motor Accident Claims Tribunal Rules, 2008, the
following interim directions are issued to the Claims Tribunals
for streamlining the system:-
(i) Before or at the time of passing of the award, the
Claims Tribunals shall examine the claimants to
ascertain their financial condition and needs and shall
pass an order with regard to their share, mode of
disbursement, amount to be kept in fixed deposit and
period of fixed deposit according to the financial
condition of the claimants. (It has been noticed that, in
many cases, the Tribunals have been passing the
standard orders of disbursement and fixed deposits
without examining the financial condition and needs of
the claimants and the poor victims are left at the mercy
of either accepting the order or again engaging the
counsel to approach the Court for modification).
(ii) At the time of examining the Claimants, the
Claims Tribunals shall also ascertain the complete
address of the claimants as well as their counsel. In the
award, the Claims Tribunals shall specifically direct the
Insurance company and/or the owner/driver, as the
case may be, to deposit the award amount with the
Tribunal and/or the Bank along with the interest upto
MAC.APP.No.422/2009 Page 17 of 21
the date of notice of deposit to the claimants with a
copy to their counsel. The names and addresses of the
claimants and their counsel for issuance of notice of
deposit be mentioned in the award.
(iii) If the award amount has been directed to be
deposited by the Insurance Company with the bank,
copy of the award be sent to the Nodal Officer of the
Bank along with the Court stamped copy of the
photographs and signatures of the claimants. The
photographs and signatures of the claimants be taken
at the time of examining them before or at the time of
passing the award. Two sets of photographs and
signatures should be taken, out of which one set should
be sent to the Nodal Officer of the Bank along with the
copy of the award and the second set should be
retained in the Court record for future reference and/or
any irregularity being pointed out. (The forwarding of
the Court stamped photographs and the signatures of
the claimants would ensure that no attempt is made to
defraud the system). If possible, the proof of residence
and the details of the Bank Account should also be
collected from the claimant at the time of examining
them and one stamped set of the same should also be
forwarded to the Bank and the second set be retained
in the Court record.
(iv) The Claims Tribunal shall fix a date for reporting
compliance in the award itself. The Claims Tribunals
shall also direct the Insurance Company and/or driver
or owner to place on record the proof of deposit of the
award amount, the notice of deposit and the calculation
of interest on the date fixed. Upon such proof being
filed, the Claims Tribunal shall ensure that the interest
upto date of notice of deposit has been deposited by all
concerned.
MAC.APP.No.422/2009 Page 18 of 21
(v) If the award amount is not deposited within the
time provided in the award, the Claims Tribunals shall
proceed to recover/execute the award in terms of the
directions of this Court in the case of New India
Assurance Company Ltd. Vs. Kashmiri Lal, 2007
ACJ 688 .
(vi) The record of all the awards passed by the Claims
Tribunals shall be maintained by the Nazirs in
chronological order according to the date of the award
in such a manner that it is easy for the Nazir as well as
the enquiring litigants/lawyers to ascertain whether the
payment of their award has been received or not. The
following can be considered as a format:-
a) Date of award
b) Case number
c) Title of the case
d) Award amount
e) Date of deposit of the award amount
f) Date of notice of deposit by the depositor.
g) Date of notice of deposit by the Tribunal.
h) Amount of interest upto date of notice of
deposit.
i) Whether award amount and complete
interest deposited.
j) Balance outstanding interest.
k) Remarks (Action taken to recover the
balance interest)
(vii) In all pending execution cases, the Claims
Tribunals shall follow the directions of this Court in New
India Assurance Company Ltd. Vs. Kashmiri Lal
(supra). The Claims Tribunals shall direct all the
Insurance Companies to provide the name of Banker
and their Account number within ten days.
(viii) In respect of pending cheques, the Claims
Tribunal shall forthwith issue the notice of deposit to
the claimants as well as their counsels.
MAC.APP.No.422/2009 Page 19 of 21
(ix) In respect of the expired cheques, the Claims
Tribunal shall also forthwith issue notice to the
Insurance Companies with direction to deposit fresh
cheques within 30 days.
18. The final order/directions shall be passed on the next
date of hearing after examining the final Status Reports of
the Claims Tribunals and the Insurance companies in terms
of the order dated 27th January, 2010 and after hearing all
the parties. The Claims Tribunals and all the Insurance
Companies shall submit their response to the aforesaid
interim directions and further suggestions, which shall be
considered on the next date of hearing. In the meantime, the
Claims Tribunals shall implement Rules 31 and 32 of Delhi
Motor Accident Claims Tribunal Rules, 2008 read with Order
XXI Rule 1 of the Code of Civil Procedure, the directions
passed by this Court in New India Assurance Company
Ltd. Vs. Kashmiri Lal (supra) and the aforesaid interim
directions. The action taken report in this regard be filed by
all the Claims Tribunals through the Registrar (Appellate)
before the next date of hearing.
th
19. List for hearing on 6 April, 2010 at 12.30 pm.
20. Copy of this order be sent to the Registrar (Vigilance),
Registrar (Appellate) and the Principal District and Sessions
Judge for communication to and compliance by all
concerned.
MAC.APP.No.422/2009 Page 20 of 21
21. Copy of this order be given Dasti to counsels for the
parties, learned Amicus Curiae as well as to the nominated
counsels of all the Insurance Companies.
th
22. Copy of the order dated 27 January, 2010 and this
order be also sent to Mr. S. Sundar, Chairman of the Expert
Committee constituted by the Ministry of Road Transport and
Highways, Government of India.
J.R. MIDHA, J
FEBRUARY 23, 2010
HL
MAC.APP.No.422/2009 Page 21 of 21