Rashmi Bala Nath and Others vs Ananda Ram Bharali and Others

V.D. Gyani, J.—Both these appeals u/s 173 of the Motor Vehicles Act, 1988, have common feature in as much as, they arise out of awards passed by the Member Motor Accident Claims Tribunal on the basis of compromise arrived at between the parties in the Lok Adalat The claim was settled so far as the Insurer was concerned and allowed to proceed as against the owner. In both the cases the amount of compensation awarded to Rs. 50,000/- based on compromise. In both the cases the interest of minor claimants is involved. In both the cases the Tribunal is the same and despite service of notices, none appears for the Respondent insurer in both these appeals pending for almost over five years. It is for this reason that these appeals are being disposed of by a common judgment after hearing the Appellants counsel.

It is significant to be noted that even according to the learned member "the evidence adduced by the claimant shows that the final award would have been much higher", yet the total compensation awarded is only Rs. 50,000/-. Even if a claim is to be settled in a Lok Adalat, on the basis of any compromise arrived at between the parties, it is the duty of the Member of the Tribunal to satisfy himself that the compromise arrived at is just and fair and this duty is all the more enhanced when claimants include minors (as in both these cases), whose interest need to be protected by the court or Tribunal. There is much force in the submission made by the learned Counsel for the Appellant that the Tribunal mechanically accepted the compromise petition sacrificing the interest of the minors and it is mainly for this reason that we are interfering with the impugned awards in both the appeals.

Appeal No. 24/93 arises out of award dated 21.2.92 as passed by the Member, Motor Accident Claims Tribunal, Kamrup, Guwahati in claim case No. 27 (K) of 1988. Appeal No. 19/93 is directed against the award dated 29.5.92 passed by the Member Motor Accident Claims Tribunal, Kamrup, Guwahati in M.A.C. Case No. 105(K)/87. The award is cryptic, it is reproduced hereunder:

Claimant is present. It transpires from record that on 28.5.89 the case is fully and finally adjudicated at Lok-Adalat at an award of Rs. 50,000/- and the award is already paid and accepted O.P. Ins. Co. has paid the award. Hence the question of giving a new base of life to this case does not arise, and it not maintainable. The proceeding stands dismissed.

O.P. United India Ins. co. is present, who has filed copy of the Insurance Policy.

Ordinarily, this Court would not have interfered in such matters settled in Lok Adalat, but there are certain acts as noted below, of grave dereliction of duty resulting in grave failure of justice which compel us to interfere in this particular appeal. The amount awarded appears to be too meagre considering the following facts.

There are as many as six claimants-dependants including the widow of the deceased Nandiram Nath Appellant No.. 1 Appellants No. 2, 4 and 5 are daughters while Appellant No. 3. is the son of the deceased. Out of them Appellants No. 4 and 5 are minors. The Appellant No. 6 is the grand-mother of the minor daughters and son. The interest of the minor has not been taken care of while passing the impugned award. The criticism that the award has been mechanically made is not wholly without substance. The amount awarded is only Rs. 50,000/- it is primarily for the interest of the minors which needs to be protected, that we are inclined to interfere with impugned award in exercise of the supervisory jurisdiction of High Court. It is accordingly set aside and the matter is remanded back to the Tribunal for proper determination of compensation in accordance with law.

The amount as awarded, if paid, or deposited shall be adjustable towards the amount of compensation as may be determined by the Tribunal. The parties are directed to appear before the Tribunal on the 4th, May 97. The Tribunal shall afford all reasonable opportunity of hearing including adducing evidence, to all parties on the basis of existing proceedings. The Tribunal is further directed to dispose of these claims as early as possible say within three months from today. It is further directed that in the event there is any increase in compensation, the Tribunal shall pass suitable directions such as fixed deposit in Bank, to safeguard minors interest.

The appeals are allowed as indicated above. There shall be no order as to costs.