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As per case facts, two claimants, a father and son, filed separate petitions before a Motor Accident Claims Tribunal seeking compensation for injuries sustained in an accident involving their motorcycle
...and an Ambassador car. The Tribunal awarded them compensation. However, the appellant Insurance Company later discovered new information suggesting that the accident was fabricated, and the injuries were sustained in a different type of incident involving a tractor. The Insurance Company moved the Tribunal to recall the awards, but it was dismissed due to lack of review power. Their subsequent Writ Petition to the High Court was also dismissed, citing that it was a question of fact not suitable for writ jurisdiction and that the statute lacked review power. The question arose whether courts, particularly High Courts and Tribunals, possess the power to recall or set aside judgments or awards obtained through fraud, especially when new facts revealing the deception emerge after the initial award has been passed. Finally, the Supreme Court held that fraud unravels everything, and no judgment obtained by fraud can be allowed to stand, as it affects the solemnity of proceedings and constitutes an abuse of the court's process. The Court emphasized that all courts have inherent power to set aside orders obtained by fraud. Consequently, the Supreme Court allowed the appeals, set aside the impugned orders and awards, and directed the Tribunal to reconsider the claims afresh, allowing the Insurance Company to substantiate its allegations of fraud and the claimants to present their rebuttal.
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