Facts
Tata AIG challenged orders of the Motor Accidents Claims Tribunal, Additional Sub Court, Hosur, dismissing its applications to recall Lok Adalat awards in five claim petitions.
Source reference: p. 4–5The insurer alleged that the medical records underlying the awards were forged and fabricated, a fact it said emerged only later.
Source reference: p. 4–5Although the insurer had deposited the awarded sums, the claimants’ counsel expressed no objection to recalling the awards.
Source reference: p. 4–5The Tribunal dismissed the applications as not maintainable before it, holding that the insurer should approach the High Court under Articles 226 or 227 of the Constitution.
Source reference: p. 4–5The insurer filed these revisions under Article 227.
Source reference: p. 4Issues
1. Whether the Tribunal could entertain applications to recall Lok Adalat awards on the ground that they were procured through fraud.
Source reference: p. 4–62. Whether the Tribunal erred in dismissing the recall applications as not maintainable, requiring the High Court to intervene under Article 227.
Source reference: p. 5–6Law Applied
Under United India Insurance Co. Ltd. v. Rajendra Singh, 2000 (2) SCALE 343, a court or Tribunal may, exercising powers under Sections 151, 152 and 153 of the Code of Civil Procedure, consider an application to annul an award where fraud is alleged.
Source reference: p. 5Although a Lok Adalat award generally cannot be set aside by the court that passed it and may be challenged before the High Court in its extraordinary jurisdiction under Articles 226 or 227, the judgment held that an allegation of fraud permits the Tribunal to recall its award.
Source reference: p. 6Reasoning
The Court treated the alleged fabrication of medical records as a claim of fraud and found the present matters comparable to United India Insurance Co. Ltd. v. Rajendra Singh.
Source reference: p. 5–6It held that the Tribunal should have entertained the applications rather than applying the general rule concerning challenges to Lok Adalat awards.
Source reference: p. 5–6The claimants’ counsel had also expressed no objection to recall, reinforcing the Court’s conclusion that the applications should have been allowed.
Source reference: p. 5–6Holding
The High Court allowed all five Civil Revision Petitions and set aside the challenged orders, thereby permitting recall of the Lok Adalat awards.
It further held that the insurer was entitled to withdraw the amounts deposited pursuant to those awards.
Source reference: p. 6No costs were ordered.
Source reference: p. 6Acts & Sections Cited
3 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Code of Civil Procedure, 19083
Original Court PDF
TATA AIG General Insurance Co.LtdvsMinor Srinithi
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