19 Sep 2026 12:20 PM
Supreme Court
Supreme Court

Motor Accident Claim -- Territorial Jurisdiction of Insurer's Place of Business -- Place of business of insurer does not confer territorial jurisdiction on Claims Tribunal under Section 166(2)

(i) Motor Vehicles Act, 1988, S.166(2) -- Motor Accident Claim -- Territorial Jurisdiction of Insurer's Place of Business -- Section 166(2) permits a claimant to file a claim at the place where he resides or carries on business, but the expression "carries on business" applies only to the claimant and not to the defendant, whose option is confined to place of residence. The insurer is not included within the term "defendant" for this purpose, as its impleadment in a claim petition is optional. Territorial jurisdiction of the Tribunal cannot be founded merely on the insurer's place of business. (ii) Civil Procedure Code, 1908, S.21 -- Objection to Territorial Jurisdiction -- Stage of Raising Objection -- The requirement to demonstrate failure of justice to sustain an objection to territorial jurisdiction under Section 21(1) applies only where the objection is raised at the appellate or post-award stage. Where the objection to territorial jurisdiction is raised before the Tribunal at the threshold, before adjudication on merits, this requirement does not apply and the provisions of the special statute alone govern the issue.

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