The residual question is what would be the appropriate direction. Considering the beneficial object of the Act, it would be proper for the insurer to satisfy the award, though in law it has no liability. In some cases the insurer has been given the option and liberty to recover the amount from the insured. For the purpose of recovering the amount paid from the owner, the insurer shall not be required to file a suit. It may initiate a proceeding before the concerned Executive Court as if the dispute between the insurer and the owner was the subject matter of determination before the Tribunal and the issue is decided against the owner and in favour of the insurer. Before release of the amount to the claimants, owner of the offending vehicle shall furnish security for the entire amount which the insurer will pay to the claimants. The offending vehicle shall be attached, as a part of the security. If necessity arises the Executive Court shall take assistance of the concerned Regional Transport Authority. The Executing Court shall pass appropriate orders in accordance with law as to the manner in which the owner of the vehicle shall make payment to the insurer. In case there is any default it shall be open to the Executing Court to direct realization by disposal of the securities to be furnished or from any other property or properties of the owner of the vehicle i.e. the insured. {Para 13}
IN THE SUPREME COURT OF INDIA
Civil Appeal Nos. 6178 of 2004.
Decided On: 21.09.2004
National Insurance Co. Ltd. Vs. Challa Bharathamma and Ors.
Hon'ble Judges/Coram:
Dr. Arijit Pasayat and C.K. Thakker, JJ.
Author: Arijit Pasayat, J.
Citation: (2004) 8 SCC 517,MANU/SC/0779/2004.
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