The Oriental Insurance Company Ltd v. Pawan Kumar Singh

Learned counsel for the appellant/Insurance Company is present.

Learned counsel for the appellant has submitted that, in view of the amendment made to Section 149 of the Motor Vehicles Act, 1988, the principle of "pay and recover" is no longer in existence; however, the issue is presently sub judice before the Hon'ble Supreme Court.

Learned counsel for the appellant/Insurance Company has further submitted that the impugned award has been passed in the breach of the policy conditions and, therefore, the Insurance Company is not liable to pay any compensation.

Submission requires consideration.

Admit.

Issue notice to the respondent(s). Steps be taken within ten days by registered speed post/A.D.

Summon the photo-stat copy of the record of Tribunal after the amount is deposited and disbursed to the claimants in terms of this order.

The appeal shall be heard after perusing the record. Learned counsel shall be at liberty to refer the relevant documents from record at the time of hearing.

Until further orders of this Court, the effect and operation of the award dated 10.02.2026 passed by the Motor Accident Claim Tribunal, Saharanpur, 2 FAFO No. 1245 of 2026 in M.A.C.P. No. 160 of 2024 shall remain stayed, provided the appellant deposits 50% of the amount awarded by the Tribunal along with upto date interest before the Tribunal within six weeks from today. Remaining 50% amount shall remain stayed.

The Tribunal shall release the entire 50% amount deposited by the appellant pursuant to this order in favour of the claimant within the next four weeks, upon filing of an application by him, without insisting upon any security or surety. The Tribunal is further directed to obtain an undertaking from the claimant that in the event it is ultimately held that the appellant/Insurance Company is not liable to pay the compensation, the amount so released shall be refunded by the claimant appellant/Insurance Company.

Release of the remaining amount shall be subject to further orders that may be passed by this Court in the instant appeal.

The statutory deposit of Rs.25,000/- made by the appellant before this Court shall be remitted to the Tribunal forthwith to be adjusted in the amount to be deposited by the appellant under this order.

In case of default in depositing the amount, as directed above, the interim protection granted shall automatically stand vacated and the award shall be executed forthwith.

List this matter after three months. May 12, 2026 K.K. Maurya (Abdul Shahid,J.)