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Issues Involved:
1. Whether an insurance company can maintain an appeal against an Award of the Claims Tribunal on the quantum of compensation without obtaining leave under Section 170 of the Motor Vehicles Act, 1988. 2. Interpretation and application of Sections 96(2) and 110C(2-A) of the Motor Vehicles Act, 1939, and Sections 149(2), 170, and 173 of the Motor Vehicles Act, 1988. 3. The impact of the reservation clause (condition-2) in the insurance policy on the insurer's right to appeal. Issue-wise Detailed Analysis: 1. Maintainability of Appeal by Insurance Company Without Leave Under Section 170: The primary question was whether an insurance company could appeal against the quantum of compensation awarded by the Claims Tribunal without obtaining leave under Section 170 of the Motor Vehicles Act, 1988. The judgment clarified that without such leave, the insurer could only contest the claim on limited grounds specified in Section 149(2) of the Act. This was consistent with the Supreme Court's interpretation in Shankarayya v. United India Insurance Co. Ltd., which held that an insurer could not have a wider defense on merits than what was available statutorily unless leave was obtained from the Claims Tribunal. 2. Interpretation and Application of Relevant Sections: The judgment analyzed Sections 96(2) and 110C(2-A) of the Motor Vehicles Act, 1939, and their corresponding sections in the 1988 Act, Sections 149(2), 170, and 173. It was noted that Section 170 allowed the insurer to contest the claim on all grounds available to the insured if there was collusion or if the insured failed to contest the claim. However, this required specific leave from the Claims Tribunal. The consistent view of the Supreme Court, as reflected in cases like Narendra Kumar v. Yarenissa and Chinnama George v. N.K. Raju, was that an insurer could not appeal on the quantum of compensation without such leave. 3. Impact of the Reservation Clause in the Insurance Policy: The judgment also addressed the argument regarding the reservation clause (condition-2) in the insurance policy, which purportedly allowed the insurer to defend or settle claims in the name of the insured. It was argued that this clause enabled the insurer to appeal on all grounds available to the insured. However, the judgment clarified that such a clause could not override statutory provisions. The Supreme Court in Nicolletta Rohtagi's case reinforced that the statutory bar under Sections 149(2) and 170 could not be circumvented by invoking the reservation clause. The insurer's right to appeal on merits was strictly limited to the grounds specified in the statute unless leave was obtained under Section 170. Conclusion: The judgment concluded that an insurance company could not maintain an appeal against the Award of the Claims Tribunal on the quantum of compensation without obtaining leave under Section 170 of the Motor Vehicles Act, 1988. This conclusion was consistent with the Supreme Court's rulings, particularly in Nicolletta Rohtagi's case, which clarified that the insurer's right to appeal was subject to statutory limitations and could not be expanded by contractual clauses in the insurance policy.
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