Page 129 - The Motor Vehicles Act, 1988

SECTION 153 THE MOTOR VEHICLES ACT, 1988 115

(2) In the event of any person becoming insolvent or making an arrangement with
his creditors or in the event of an order being made for the administration of the estate
of a deceased person according to the law of insolvency, or in the event of a winding-up
order being made or a resolution for a voluntary winding-up being passed with respect
to any company or of a receiver or manager of the company’s business or undertaking
being duly appointed or of possession being taken by or on behalf of the holders of any
debentures secured by a floating charge on any property comprised in or subject to the
charge, it shall be the duty of the insolvent debtor, personal representative of the deceased
debtor or company, as the case may be, or the official assignee or receiver in insolvency,
trustee, liquidator, receiver or manager, or person in possession of the property to give,
on the request of any person claiming that the insolvent debtor, deceased debtor or
company is under such liability to him as is covered by the provision of this Chapter,
such information as may reasonably be required by him for the purpose of ascertaining
whether any rights have been transferred to and vested in him by section 151 and for
the purpose of enforcing such rights, if any, and any such contract of insurance as
purports whether directly or indirectly to avoid the contract or to alter the rights of the
parties thereunder upon the giving of such information in the events aforesaid, or
otherwise to prohibit or prevent the giving thereof in the said events, shall be of no
effect.
(3) If, from the information given to any person in pursuance of sub-section (2) or
otherwise, he has reasonable ground for supporting that there have or may have been
transferred to him under this Chapter rights against any particular insurer, that insurer
shall be subject to the same duty as is imposed by the said sub-section on the persons
therein mentioned.
(4) The duty to give the information imposed by this section shall include a duty
to allow all contracts of insurance, receipts for premiums, and other relevant documents
in the possession or power of the person on whom the duty is so imposed to be inspected
and copies thereof to be taken.
153. Settlement between insurers and insured persons
(1) No settlement made by an insurer in respect of any claim which might be
made by a third party in respect of any liability of the nature referred to in clause (b) of
sub-section (1) of section 147 shall be valid unless such third party is a party to the
settlement.
(2) The Claims Tribunal shall ensure that the settlement is bona fide and was not
made under undue influence and the compensation is made in accordance with the
payment schedule referred to in sub-section (1) of section 164.
(3) Where a person who is insured under a policy issued for the purpose of this
Chapter has become insolvent, or where, if such insured person is a company, a winding-
up order has been made or a resolution for a voluntary winding-up has been passed
with respect to the company, no agreement made between the insurer and the insured
person after the liability has been incurred to a third party and after the commencement
of the insolvency or winding-up, as the case may be, nor any waiver, assignment or
other disposition made by or payment made to the insured person after the
commencement aforesaid, shall be effective to defeat the rights transferred to the third
party under this Chapter; but those rights shall be the same as if no such agreement,
waiver, assignment or disposition or payment has been made.