On 30th April 1976, the Odisha High Court passed a judgement in relation to Motor Vehicles Act, 1988 and The Insurance Act, 1938. This Judgement was passed by Jusctice R Misra, Justice B Ray and Justice N Das.
FACTS OF THE CASE:
In dealing with a motor accident claim appeal under section 110-D of the old Act, i.e., the Motor Vehicles Act, 1939, in the case of National Insurance Company v. Magikhaia Das, reported in 42 (1976) CLT 648, a Full Bench of this Court had the occasion to interpret the provision of section 96 thereof (section 149 of the 1988 Act), which provided for the duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks.
Hon’ble Justice Ranganath Misra, (as his Lordship then was) speaking for the Full Bench of this Court ruled that the insurer is entitled to raise those pleas which could be raised by it before the Claims Tribunal and the appeal would not be maintainable on the grounds which could not be raised before the Claims Tribunal by the insurer. The statutory provision is clear that an insurer who has been made a party to the proceeding for recovery of compensation can resist the claim only on the ground mentioned in sub-section (2) of section 96 of the old Act and it is not open to raise any other plea. This decision of the Full Bench was found to be the correct legal position in many a judgments of the Supreme Court.
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JUDGEMENT REVIEWED BY AMRIT BEHERA.