ORIGINAL JURISDICTION - Orissa High Court

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9. We may note in this connection the following passage in the
case of Montreal Street Railway Company v. Normandin, AIR 1917
Privy Council 142 :
“When the provisions of a statute relate to the performance of
a public duty and the case is such that to hold null and void
acts done in neglect of this duty would work serious general
inconvenience or injustice to persons who have no control
over those entrusted with the duty and at the same time
would not promote the main object of the Legislature, it has
been the practice to hold such provisions to be directory only,
the neglect of them, though punishable, not affecting the
validity of the acts done.””
21. Such being the legal dispensation under the M.V. Act, there is
absolutely no scope for the Insurance Company to avoid the statutory liability
towards third-party claimants. I am in respectful disagreement with any
other interpretation of the statutory provisions and their implications which
learned counsel for the Insurance Company seeks to assign by placing
reliance on the decisions in New India Assurance Co. Ltd. –vrs.- Kaliathal
SMT. TULASI SAHUKAR -V- NEW INDIA ASSURANCE [B.K.PATEL,J.]
and others (supra) and in United India Insurance Co. Ltd. –vrs.-
Mohanlal Nandiram and others (supra).
22. In view of the above, the impugned award directing the owner to pay
the compensation amount is not sustainable in law. Therefore, the impugned
award is set aside and it is held that the Insurance Company is liable to pay
the compensation amount with interest and cost as awarded to the
claimants.
23. Accordingly, the appeal is allowed. The Insurance Company is directed
to deposit with the Tribunal the award amount with interest and cost within
two months. On such deposit the learned Tribunal shall deposit and disburse
the amount among the claimants in the same proportion as directed in the
impugned award.
Parties shall bear their own cost.
Appeal allowed.