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2004 Supreme(SC) 942

2004(6) Supreme 379
SUPREME COURT OF INDIA
(From Andhra Pradesh High Court)
N. Santosh Hegde, S.B. Sinha & A.K. Mathur, JJ.
National Insurance Co. Ltd. -Appellant
versus
V. Chinnamma & Ors. -Respondents
Civil Appeal No. 5478 of 2004
(Arising out of SLP (C) No. 12019 of 2003)
Decided on 25-8-2004
Counsel for the Parties :
For the Appellant : P.K. Seth, Sudhir Kumar Gupta and Anurag Pandey, Advocates.
For the Respondents : Mrs. K. Sharda Devi, Advocate.

Headnote:Motor Vehicles Act, 1988-Section 147-Liability of Insurance Company-Deceased carrying business in vegetables purchased vegetable and loaded same in a trailer of tractor and travelled in it-Tractor met with accident due to its negligent driving and deceased died-Appellant Insurance Company, insurer of tractor, resisted claim on plea that deceased was travelling as "paid passenger"-Tribunal held appellant liable in the award and High Court upheld the award-Appeal-Accident occurred in 1991, much prior to coming into force of 1994 amendment-Case was covered by decision of Supreme Court in Asha Rani case and impugned judgment could not be sustained.

       Held : A tractor fitted with a trailer may or may not answer the definition of goods carriage contained in Section 2(14) of the Motor Vehicles Act. The tractor was meant to be used for agricultural purposes. The trailer attached to the tractor, thus, necessarily is required to be used for agricultural purposes, unless registered otherwise. It may be, as has been contended by Mrs. K. Sharda Devi, that carriage of vegetables being agricultural produce would lead to an inference that the tractor was being used for agricultural purposes but the same by itself would not be construed to mean that the tractor and trailer can be used for carriage of goods by another person for his business activities. The deceased was a businessman. He used to deal in vegetables. After he purchased the vegetables, he was to transport the same to market for the purpose of sale thereof and not for any agricultural purpose. The tractor and trailer, therefore, were not being used for agricultural purposes. However, even if it be assumed that the trailer would answer the description of the "goods carriage" as contained in Section 2(14) of the Motor Vehicles Act, the case would be covered by the decisions of this Court in Asha Rani (supra) and other decisions following the same, as the accident had taken place on 24.11.1991, i.e., much prior to coming into force of 1994 amendment. For the reasons aforementioned, the impugned judgments cannot be sustained which are set aside accordingly. (Paras 16 and 17)

       

JUDGMENT

S.B. Sinha, J.-Leave granted.

2. The Appellant - Insurance Company aggrieved by and dissatisfied with a judgment and order dated 28th March, 2002 passed by the High Court of Judicature Andhra Pradesh at Hyderabad in AAO No. 216 of 1997 is in appeal before us.

3. The respondents herein are heirs and legal representatives of one V. Gopal. The said V. Gopal (the deceased) used to carry on business in vegetables. He purchased 5 bags of vegetables on 24.11.1991 in a village known as Ayyapareddipalem and loaded the same in a trailer of a tractor bearing No. MH33-8109. He was traveling therein. He wanted to buy some more vegetables at a village known as Peddapadu. While the tractor approached the said village, a bus was seen coming from opposite direction. Because of rash and negligent driving on the part of the driver of the said tractor, and which was driven at a very high speed, it went to the extreme left side of road margin and because of heavy jerks, the deceased fell down and received serious injuries. He was immediately shifted to Peddapadu where he breathed his last.

4. A claim petition was filed by the respondents herein before the Addl. Motor Accidents Claims Tribunal, Nellore claiming a sum of Rs. 1,00,000/-. The Appellant herein denied and disputed its liability to pay any amount to the Respondents by way of compensation inter alia on the ground that the deceased was traveling in the said tractor as a paid passenger .

5. The learned Addl. Motor Accidents Claims Tribunal inter alia held that carrying the goods, i.e., vegetables, by the deceased as owner thereof would entitle the Applicants to receive compensation from the Appellant.

6. The learned Tribunal observing that a person who is not a party to contract of insurance would be the third party and in that view of the matter the respondents would be entitled to the amount of compensation even if the vehicle was only having third party insurance (Act policy). It was further held that the Tribunal was empowered to grant compensation over and above the amount claimed. A sum of Rs. 1,53,000/- as awarded by way of compensation in favour of the Respondents. The High Court by reason of the impugned judgment has dismissed the appeal preferred by the Appellant herein from the said judgment and award holding that as the deceased was traveling in the trailer alongwith his goods being vegetables, it was liable to pay compensation.

7. Mr. P.K. Seth, learned counsel appearing on behalf of the appellant would submit that as this Court in New India Assurance Co. Ltd. Vs. Asha Rani and Others [(2003) 2 SCC 223] overruled its earlier decision in New India Assurance Co. Vs. Satpal Singh [(2000) 1 SCC 237] holding that the insurance company would not be liable for paying compensation to a passenger in a goods vehicle, whether he was travelling as an owner of the goods when that vehicle meets with an accident, the impugned judgment is not sustainable.

8. Mrs. K. Sharda Devi, learned counsel appearing on behalf of the respondents, on the other hand, would submit that a tractor is not a goods carriage vehicle and as carrying of vegetables in a tractor would be for agricultural purpose, the appellant cannot be absolved from its liability to pay the amount of compensation.

9. Section 147(1) of the Motor Vehicles Act, 1988 is in pari materia with the provisions of Section 95(1) of the Motor Vehicles Act, 1939. In the year, 1994, Section 147 was amended by reason of Act 54 of 1994 with effect from 14.11.1994 in terms whereof the words "including owner of the goods or his authorized representative carried in the vehicle" were added after the words "against any liability which may be incurred by him in respect of the death of or bodily injury to any person."

10. In Asha Rani (supra), this Court overruling its earlier decision in Satpal Singh (supra) observed:

"9. In Satpal Singh s case (supra) the Court assumed that the provisions of section 95(1) of Motor Vehicles Act, 1939 are identical wi






















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