PSU should not indulge in legal jugglery: HC

NEW DELHI: Holding that indulging in "jugglery of legal provision" for depriving the public of its due is an abuse of law, the Delhi High Court has imposed a cost on NIACL for resorting to such practice. Justice V B Gupta said the government undertaking should have a sympathetic view towards the general public. "The government undertaking must have human approach and should not indulge in the jugglery of legal provisions as to deprive the unfortunate victims of their legal due," Justice Gupta said while imposing a cost of Rs 5,000 on New India Assurance Co. Ltd (NIACL) for filing an appeal against an interim compensation to the family of an accident victim. The PSU approached the High Court against the order of Motor Accident Claims Tribunal which had directed it to give interim compensation of Rs 50,000 to the family of a victim, who died in a road accident. The insurance company contended that it was not liable to pay the money as the driver of the truck, which hit the deceased, was not having a valid licence. The Court, however, was impressed with the contentions and said that filing the appeal was simply an abuse of the process of law. "NIACL being a government undertaking should have taken a sympathetic view and should not have blindly filed the appeal so as to deprive the dependents of the victim," the Court said. "It is nothing but an abuse of the process of law. The appeal is therefore dismissed with costs of Rs 5,000," it said. "If the vehicle is not insured at all, the question of making insurer pay would not arise but insurer cannot do it by raising all possible plea to avoid payment of interim compensation when it is insured," Justice Gupta said.
5 May, 2008, 2206 hrs IST, PTI
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