The Supreme Court held that an insurance company, if impleaded as a party in a motor accident claim, can challenge all aspects of the case including negligence and quantum of compensation, and is not restricted to defenses under Section 149(2) of the Motor Vehicles Act. The Court set aside the High Court’s order and remitted the matter for fresh consideration.
The case arose from a motor accident in which a pedestrian lost his life, and compensation was awarded by the Motor Accident Claims Tribunal (MACT). The insurer challenged the award; however, the High Court dismissed the appeal as not maintainable, restricting the insurer’s right to contest.
Setting aside the High Court’s decision, the Supreme Court held that once an insurer is made a party to the proceedings, it steps into the shoes of the owner/driver to a certain extent and can raise all permissible defenses. The Court emphasized that denying such a right would be unjust and contrary to settled legal principles.
Accordingly, the matter was remitted to the High Court for fresh consideration on merits, particularly on the issue of quantum of compensation, with a direction for expeditious disposal.
Recent Post
