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Civil · Reportable judgment

K Rashik vs National Insurance Company Ltd. and Another

Court
Supreme Court of India
Date
16 September 2026
Case No.
Civil Appeal No. 10706 of 2026
Result
Dismissed
Bench
Atul S. Chandurkar, Ujjal Bhuyan
Citation
[2026] 10 S.C.R. 118 : 2026 INSC 996
Acts & Sections
Motor Vehicles Act, 1988 Constitution CPC
Supreme Court Reports [2026] 10 S.C.R. 118 : 2026 INSC 996
Issue for consideration
Issue arose as regards the correctness of the order passed by the High Court that since the accident occurred at Chittoor, only MACT, Chittoor had jurisdiction, setting aside the order passed by the Member of the Tribunal, Chennai that since the insurer had its business also at Chennai, the tribunal at Chennai had jurisdiction.
Headnote

Motor Vehicles Act, 1988 – s.166, 166(2) – Territorial jurisdiction – Claim application by the appellant-claimant before the MACT Chennai – Insurer-respondent objected to the territorial jurisdiction of the tribunal at Chennai on the ground that no part of cause of action had arisen within the jurisdiction of the tribunal at Chennai, and in view of s.166(2), the said Tribunal had no territorial jurisdiction – However, the tribunal rejected the objection – Petition u/Art.227 of the Constitution by the Insurer – High Court held that since the accident occurred at Chittoor, only MACT, Chittoor had jurisdiction – Order passed by the Member of the Tribunal, Chennai set aside and the proceedings transferred to the Tribunal at Chittoor – Correctness:

Read the full headnote (1 more paragraph)

Held: Error committed by the Tribunal at Chennai in holding that it had territorial jurisdiction rightly corrected by the High Court by setting aside that order – Claimant resides at Chittoor, Andhra Pradesh, as pleaded – Accident occurred in District Tirupati – No averment in the claim application stating that the claimant carries on business elsewhere – Even the driver of the offending vehicle is stated to reside in District Chittoor – It is, thus, clear that no part of cause of action had arisen within the local limits of District Chennai so as to clothe the Tribunal there with territorial jurisdiction – Also, in a claim application filed u/s.166(1), it is not mandatory for a claimant to implead an insurer as a defendant – Claimant has a choice in that regard – However, if the claimant impleads the insurer as a party to the claim application, the insurer would be free to contest the proceedings on all permissible grounds, without any restriction – It can raise objection to the territorial jurisdiction of the tribunal – Furthermore, s.166(2) indicates that a claimant has an option to file a claim application either before the Tribunal having jurisdiction over the area in which the accident occurred or the Tribunal within the local limits of whose jurisdiction the claimant resides or carries on business or within the local limits of whose jurisdiction the defendant resides – As regards use of the expression ‘within the local limits of whose jurisdiction the defendant resides’ in s.166(2), it is clear that the same does not intend to refer to an insurer as a defendant – Claimant has an option to file a claim application even where ‘the defendant resides’ – On facts, the claimant himself impleaded the insurer as a party to the claim application and it raised an objection to territorial jurisdiction before the Tribunal itself – As the claim application of the claimant awaits adjudication by the Tribunal on merits, the requirements of s.166(2) of the Act of 1988 have to be satisfied and s.21(1) CPC not attracted – Furthermore, Act of 1988 redresses the hardships flowing from a motor vehicle accident, amongst other objects – It must be interpreted keeping these objectives in mind – However, an interpretation which does not flow from the plain reading of the statutory provisions despite a purposive interpretation cannot be commended – Interpretation that does not find any statutory support cannot be accepted and an interpretation that is in tune with the plain language of the statute ought to be preferred – Thus, the order passed by the Single Judge of the High Court upheld – Direction to transmit the entire proceedings from the Tribunal at Chennai to the Tribunal at Chittoor correctly issued. [Paras 4, 6, 8-10, 14-16]

Keywords: Insurer’s business · Territorial jurisdiction · Cause of action · Within the local limits of whose jurisdiction the defendant resides · Impleadment of insurer as defendant · Carries on business · Purposive interpretation

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Atul S. Chandurkar, J. A. 1. Facts: The appellant1 on 25.10.2022 was riding his two-wheeler along with his brother when a mini truck being driven by the second respondent For short, ‘the claimant’ gave their two-wheeler a dash. The accident occurred in District Tirupati, Andhra Pradesh. The appellant filed a claim application under Section 166 of the Motor Vehicles Act, 19882 before the Motor Accidents Claims Tribunal, Chennai3. The first respondent, National Insurance Company Limited4 on being served with the claim application raised an objection to the territorial jurisdiction
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