Notes on 174 _ Pay and Recovery 1 (1)

8/15/2019 Notes on 174 _ Pay and Recovery 1 (1)

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Le0"# %oi&ion:

1* -%%1 C 1( 5riental 0nsurance Co. 6td.s. Cheruvaara 8afeessu 9 5rs.(((:ecided 5n;14.1-.-%%% held in 11th para < The appeal is accordin+ly allowed holdin+ that the appellant(company is liable to pay the entire award amount to the claimants. =pon main+ such paymentthe appellant can recover the e"cess amount from the insured by e"ecutin+ this ward a+ainst theinsured to the e"tent of such e"cess as per ection 174 of the >otor ehicles ct, 1$&&. 8o costs.<

-* 0R -%%4 C 1?'1 @etween 8ational 0nsurance Co. 6td s waran in+h and 5rs (((:ecided 5n;?.%1.-%%4 held under ummery of Aindin+s headin+s(x) Where on ad!udication of the claim under the ct the Tribunal arrives at a conclusion that theinsurer has satisfactorily proved its defense in accordance with the provisions of ection 14$)-*read with ub(section )7*, as interpreted by this Court above, the Tribunal can direct that theinsurer is liable to be reimbursed by the insured for the compensation and other amounts which ithas been compelled to pay to the third party under the award of the Tribunal. uch determinationof claim by the Tribunal will be enforceable and the money found due to the insurer from theinsured will be recoverable on a certicate issued by the Tribunal to the Collector in the samemanner under ection 174 of the ct as arrears of land revenue. The certicate will be issued forthe recovery as arrears of land revenue only if, as reBuired by ub(section )'* of ection 1& of thect the insured fails to deposit the amount awarded in favor of the insurer within thirty days fromthe date of announcement of the award by the Tribunal.

'* -%1% C 1114 >ohammad 0yub Do Ea!i Faleel hamed s.>uGaheed #asha Do >ohammad0smail by TEH E0IE C5=RT 5A FR8TF T @8I65RH :ecided 5n; --.%7.-%%$ in para 4 held:R held in para -$ < 0n the

circumstances, the learned counsel for the appellant 0nsurance Company has insisted that libertymay be +iven to the 0nsurance Company to recover the money from the owner of the lorry. Thisplea of the learned counsel for the appellant may be considered in the li+ht of the decision of theupreme Court as stated supra that the 0nsurance Company may initiate a separate actiontherefor a+ainst the owner or the driver of the lorry or both, as the case may be. 0 am able to nda force in the submissions of the learned counsel for the appellant and accordin+ly, liberty is +ivento the appellant 0nsurance Company that the award amount found due to it from the insured canbe recovered on a certicate issued by the Tribunal to the Collector in the same manner underection 174 of the >otor ehicles ct, 1$&& as arrears as land revenue.<

?* -%%? C 1?-% 8ew 0ndia ssurance Co. 6td. s #ushpa and 5rs. by TEH E0IE C5=RT 5A@5>@J decided on -$.11.-%%' held in para no. - < the owner of the motor vehicle involved inthe accident has to pay the remainin+ amount of the award and the insurance company would be

entitled to recover the e"cess amount from the insured by e"ecutin+ this award a+ainst theinsured to the e"tent of such e"cess amount as per ection 174 of the ct. <


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* -%%4 C -4$ Farnataa tate Road Transport Corporation s run alias ravind by TEH E0IEC5=RT 5A FR8TF T @8I65RH A=66 @H8CE decided on %.11.-%%' held in 1-th #araection 1& of the ct enables the Tribunal to mae an award determinin+ the amount ofcompensation which appears to it to be !ust and to specify the person or persons to whomcompensation shall be paid and in main+ the award the Tribunal shall specify the amount whichshall be paid by the insurer or owner or driver of the vehicle involved in the accident or by all orany of them, as the case may be ection 174 of the ct provides that where any amount is duefrom any person under an award, the Claims Tribunal may on an application made to it by personentitled to the amount, issue a certicate for the amount to the Collector and the Collector shallproceed to recover the same in the same manner, as an arrears of land revenue.

7* -%%7C-%?& The 8ew 0ndia ssurance Co. 6td.s. mitava :as and nr. :ecided 5n;-7.11.-%% by TEH E0IE C5=RT 5A C6C=TT held < he is directed to return the same to the0nsurance Company within two months from this date and failin+ which the 0nsurance Companyshall be at liberty to realise the money by lin+ necessary application before the learned Tribunalunder ection 174 of the >otor ehicles ct, 1$&&.<

&* -%%C&'$ by TEH E0IE C5=RT 5A C6C=TT :ecided 5n; 1'.%4.-%%? held in para '7 < 5nplain readin+ of ection 174 of the said ct, it appears to this Court that the said provision consistsof three parts. 0n the rst part it contemplates an application from the holder of the award. 0n thesecond part, it contemplates that the Tribunal may issue a certicate to the Collector for recoveryof awarded money. The third part contemplates recovery of the certicated amount by theCollector as arrear land revenue.


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found that the accident has taen place on -7th 8ovember, 1$$ and the a+reement dated 1%thpril, 1$$7 has been prepared much later. The award was announced on -th 8ovember, 1$$$. 0thas further been found that the oendin+ vehicle owned by >Ds. #urar Testiles #rivate 6imited wastaen on uperdari by one of the ob!ector(petitioners nil Fumar, who was then :irector. 0t hasfurther been found that land measurin+ & anals 1 marlas was purchased throu+h anotherob!ector Ra!inder in his capacity as >ana+in+ :irector. The a+reement dated 1%th pril, 1$$7 isunre+istered document and is a device to defeat the ri+hts of the decree(holder(respondents.>oreover, the :(respondents are not party to the a+reement dated 1%th pril, 1$$7. 0f there is

any stipulation between the ob!ector(petitioners and the new :irectors of the Company, then theob!ector(petitioners have to receive the awarded amount from them. The liability cannot beavoided by them by hidin+ behind the corporate character of the Company because such liea+reements can be easily prepared to defeat the ri+hts of the :(respondents. The 5b!ector(petitioners have failed to establish their bona des.

1&* -%%-C1$%? 08 TEH E0IE C5=RT 5A #=8@ 8: ERJ8NAirst ppeal from 5rder 8o. 11-&of -%%-N:ecided 5n; %4.%'.-%%-N8ational 0nsurance Company s.Ieeta :evi and 5rs. Eeld in parano ? K The Tribunal has already found that the insurer shall be entitled to reimbursement from theowner. 0n view of the provisions of ection 174, we have no doubt that the competent authority

shall proceed in accordance with law. 0n any case, the money to be paid by the insurer +oes out ofpublic funds. 0t is only fair that these funds are protected and that the Tribunal Taes everypossible measure to ensure reimbursement. ection 174 embodies this principal. 0t shall be ept inview by the TribunalL.

1$* -%%1C1'?4 08 TEH E0IE C5=RT 5A #=8@ 8: ERJ8NCivil W.#. 8o. $1'- of -%%%N:ecided 5n; 1$.%7.-%%%N@hatinda Chemicals 6td.s.The ddl. :ist. ud+e and 5rs. EeldK Theaward was passed by >otor ccident Claims Tribunal )hereinafter referred to as


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T'e Reven!e Recovery Ac&, 189/

T'e Reven!e Recovery Ac&, 189/

ACT o.1 O2 189/ 1 3AS O 1975

n ct to mae better provision for recoverin+ certain public demands.

14th Aebruary, 1&$%.

1. T'i Ac& '" +een mo$i6e$ in i& "#ic"&ion &o &'e en"re 2"mi#yom"in, ee .1 of &'e en"re 2"mi#y om"in Ac&, 19/4 -.%.; of 19/4


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0n this ct, unless there is somethin+ repu+nant in the sub!ect or conte"t,(

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had accrued in his own district.

1. In.+y Ac& 4 of 1914..) "n$ Sc'., %&.I.

4. Reme$y "v"i#"+#e &o eron $enyin0 #i"+i#i&y &o "y "mo!n& recovere$!n$er #"& fore0oin0 ec&ion.

)1* When proceedin+s are taen a+ainst a person under the last fore+oin+ sectionfor the recovery of an amount stated in a certicate, that person may, if he denieshis liability to pay the amount or any part thereof and pays the same underprotest made in writin+ at the time of payment and si+ned by him or his a+ent,

institute a suit for the repayment of the amount or the part thereof so paid.

)-* suit under sub(section )1* must be instituted in a Civil Court havin+ !urisdiction in the local area in which the o3ce of the Collector who made thecerticate is situate, and the suit shall be determined in accordance with the lawin force at the place where the arrear accrued or the liability for the payment of the sum arose.

)'* 0n the suit the plainti may, notwithstandin+ anythin+ in the last fore+oin+section, but sub!ect to the law in force at the place aforesaid, +ive evidence withrespect to any matter stated in the certicate.

1/)4* This section shall apply if under this ct as in force as part of the law of )/#aistan or2 @urma, or under any other similar ct formin+ part of the law of ;/#aistan or2 @urma, proceedin+s are taen a+ainst a person in 4/#aistan or@urma, as the case may be,2 for the recovery of an amount stated in a certicate

made by a Collector in ?/any tate to which this ct e"tends2.2

1. In.+y &'e A.O.19;7

). In.+y &'e In$i" A$"&"&ion of Income(T"=, %ro6& T"= "n$ Reven!e


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Recovery Ac&< Or$er, 1941 >.>.O.;1 $"&e$ &'e 1/&' ecem+er, 1947"?e&&e of In$i", 1947, E=&r"or$in"ry, 1;;;


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that amount.

)'* ny private alienation of the property or of any interest of the defaultertherein, whether by sale, +ift, mort+a+e or otherwise, made after the issue of the

proclamation and before the withdrawal; thereof, shall be void as1

/a+ainst the)/Iovernment22 and any person who may purchase the property at a sale held forthe recovery of the amount stated in the certicate.

)4* ub!ect to the fore+oin+ provisions of this section, when proceedin+s are taena+ainst any immovable property under this ct for the recovery of an amountstated in a certicate, the interest of the defaulter alone therein shall be soproceeded a+ainst, and no incumbrances created, +rants made or contractsentered into by him in '/+ood faith shall be rendered invalid by reason only of

proceedin+s bein+ taen a+ainst those interests.

)?* proclamation under this section shall be made by beat of drum or othercustomary method and by the postin+ of a copy thereof on a conspicuous place inor near the property to which it relates.

1. S!+ +y &'e A O.19;7, for "0"in& &'e >overnmen&.

). S!+ +y &'e A.O 1948, for @cro*n@.

;. See $e6ni&ion in &'e >ener"# c#"!e Ac&, 1897 1/ of 1897


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enactment for the time bein+ in force for the recovery of land(revenue or of sumsrecoverable as arrears of land(revenue, or

)b* To authorise the arrest of any person for the recovery of any ta" payable to the

corporation, commissioner, committee, board, council or person havin+ authorityover a municipality under any enactment for the time bein+ in force.

8. Recovery in In$i" of cer&"in !+#ic $em"n$ "riin0 +eyon$ In$i" .

When this ct has been applied to any local area which is under the

administration of 1/the Central Iovernment )/2 but which is not part of ;/2

4/0ndia2, an arrear of land(revenue accruin+ in that local area, or a sumrecoverable as an arrear of land(revenue and payable to a Collector or otherpublic o3cer or to a local authority in that local area, may be recovered under this

ct in /2 B/0ndia2.

1. S!+.+y &'e A.O 19;7, for @&'e >.>.in C.@.

). T'e *or$ @or &'e Cro*n Rereen&"&ive@ omi&&e$ +y &'e In$i"A$"&"&ion of Income(&"=, %ro6& T"= "n$ Reven!e Recovery Ac&<Or$er, 1947 >.>.O.;1, $"&e$ &'e 1/&' ecem+er, 1947< >"?e&&e of In$i", 1947, E=&r"or$in"ry, .1;;;.>.O.;1, $"&e$ &'e 1/&' ecem+er, 1947., for @ ri&i' In$i" @.

4. T'e *or$ @&'e %rovince of@ omi&&e$ +y &'e A.O.19/.

. S!+. >.>.O.;1, $"&e$ &'e 1/&' ecem+er, 1947., for @ ri&i' In$i" @.

B. T'e *or$ @&'e %rovince of@ omi&&e$ +y &'e A.O.19/.


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9. Recovery in In$i" of #"n$ reven!e e&c., "ccr!in0 in !rm" .

1/$. Recovery in 0ndia of land revenues etc., accruin+ in @urma.

)1* The Central Iovernment may direct )that an arrear of land(revenue accruin+in @urma or a sum recoverable in @urma as an arrear of land(revenue and payableto a Collector or other public o3cer or to a local authority in @urma may be

recovered under this ct in;/2 0ndia and thereupon such arrear or sum shall beso recoverable;

#rovided that the Central Iovernment shall not +ive any such direction unless it issatised that the remedy available under section 4 of this ct in 4/2 0ndia to a

person payin+ under protest in /2 0ndia an arrear accruin+ in B/2 0ndia is

available under @urma law in @urma to a person payin+ under protest in 7/20ndia an arrear accruin+ in @urma.

)-* Aor recoverin+ by virtue of this section any arrears of ta", penalty due underthe enactments relatin+ to income(ta" or super(ta" in force in @urma, theCollector shall have such additional powers as he has in the case of 0ndianincome(ta" and super(ta" under the proviso to section 4 )-* of the 0ncome(ta"ct, 1$--.

8/)'* ub(sections )1* and )-* shall apply in relation to #aistan as they apply inrelation to @urma.2

1. In +y &'e A.O.19;7.

). 2or " $irec&ion !n$er &'i ec&ion, ee >"?e&&e of In$i", 19;7, %&.I,.1941.


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;. T'e *or$ @ri&i'@ omi&&e$ +y &'e In$i" A$"&"&ion of Income(&"=,%ro6& T"= "n$ Reven!e Recovery Ac&< Or$er, 1947 >.>.O.;1, $"&e$ &'e1/&' ecem+er, 1947< >"?e&&e of In$i", 1947, E=&r"or$in"ry, .1;;;.>.O.;1, $"&e$ &'e1/&' ecem+er, 1947< >"?e&&e of In$i", 1947, E=&r"or$in"ry, .1;;;.>.O.;1, $"&e$ &'e1/&' ecem+er, 1947< >"?e&&e of In$i", 1947, E=&r"or$in"ry, .1;;;.>.O.;1, $"&e$ &'e 1/&' ecem+er 1947 .

1/. !&y of Co##ec&or &o remi& money co##ec&e$ in cer&"in c"e.

Where a Collector receives a certicate under this ct from, a Collector of another

tate or a Collector in U0ns., ibid.V / #aistan or2 @urma, he shall remit any sumrecovered by him by virtue of that certicate to that Collector, after deductin+ hise"penses in connection with the matter.2

SCH. THE SCHE-LE


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Documents

Notes on 174 _ Pay and Recovery 1 (1)