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2008 Supreme(SC) 374

2008(2) Supreme 205
Supreme Court of india
(From Allahabad High Court)
Dr. Arijit Pasayat & P. Sathasivam, JJ.
National Insurance Co. Ltd. — Petitioner
versus
Prema Devi & Ors. — Respondents
Appeal (civil) 1667 of 2008
(Arising out of SLP(C) No. 7058/2004)
Decided on : 29-02-2008

important point
Insurance Company is liable for any person travelling in a goods carriage as a gratuitous passenger.

Headnote:(a)Motor Vehicles Act, 1988 – Section 147 – Provisions of the Act do not enjoin any statutory liability on the owner of a vehicle to get his vehicle insured for any passenger travelling in a goods carriage – Therefore, the insurer would have no liability either therefor. (Para 7)

       (b)Motor Vehicles Act, 1988 – Claimant travelling in the goods carriage as gratuitous passenger – Insurance Company not liable to compensate – Impugned order of the High Court not sustainable, set aside. (Para 8)

       2007 (3) SCALE 397 – Relied upon.

       Facts of he case:

       1.The accident in the instant case took place on 1.6.1996 while the claimant was travelling in a goods carriage as a gratuitous passenger.

       2.Stand of the appellant was that the owner of the goods carriage had not taken any policy for such passenger and there was no requirement under law for obtaining a policy for passenger.

       Findings of the Court :

       Claimant travelling in the goods carriage as a gratuitous passenger, insurance company is not liable.

       Result : Appeal allowed.

judgment

Dr. Arijit Pasayat, J. —

1.Leave granted.

2.Challenge in this appeal is to the order passed by a learned Single Judge of the Allahabad High Court, Lucknow Bench dismissing the appeal filed by the appellant.

3.Background facts in a nutshell are as follows:

The accident in the instant case took place on 1.6.1996. The claimant was travelling in a goods carriage, as a gratuitous passenger. Undisputedly she was not traveling in the goods carriage in the capacity of owner of goods or representative of owner of goods being transported in the goods carriage. This aspect was also accepted by the claimant in the claim petition.

4.Stand of the appellant was that the owner of the goods carriage had not taken any policy for such passenger and there was no requirement under law for obtaining a policy for passenger.

5.Learned counsel for the appellant submitted that the claimant could not claim indemnification by the appellant and the owners of the offending vehicles were to indemnify the award.

6.Learned counsel for the claimant and the owners of the offending vehicles supported the order of the High Court.

7.In New India Assurance Co. Ltd. v. Vedwati and Ors.,1 (2007 (3) SCALE 397), it was held as under:

“6.This Court had occasion to deal with cases of passengers traveling in goods vehicles which met accident resulting in death of such person or bodily injury. Such cases belong to three categories i.e. (1) those covered by the old Act, (2) those covered by the Act; and (3) those covered by amendment of the Act in 1994 by the Motor Vehicles (Amendment) Act. 1994 (hereinafter referred to as the ‘Amendment Act’).

7.The present appeals belong to the second category.

8.In Satpal Singh’s case (supra) this Court proceeded on the footing that provisions of Section 95(1) of the old Act are in pari materia with Section 147(1) of the Act as it stood prior to the amendment in 1994.

9.On a closer reading of the expressions “goods vehicle”. “public service vehicle”, “state carrier” and “transport vehicle” occurring in Sections 2(8), 2(25), 2(29) and 2(33) of the old Act with the corresponding provisions i.e. Section 2(14), 2(35) 2(40) and 2(47) of the Act, it is clear that there are conceptual differences. The provisions read as follows:

Old Act:

“2(8)“goods vehicle” means any motor vehicle constructed or adapted for use for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods solely or in addition to passengers”

“2(25) “public service vehicle” means any motor vehicle used or adapted to be used for the carriage of passengers for hire or reward and includes a motor cab contract carriage, and stage carriage.”

“2(29) “stage carriage” means a motor vehicle carrying or adapted to carry more than six persons excluding the driver which carries passengers for hire or reward at separate fares paid by or for individual passengers either for the whole journey or for stages of the journey:”

“2(33) “transport vehicle” means a public service vehicle or a goods vehicle:”

The Act (New Act):

“2(14) “goods carriage” any motor vehicle constructed or adapted for use solely for the carriage of goods or any motor vehicle not to constructed or adapted when used for the carriage of goods:”

“2(35) “public service vehicles” means any motor vehicles used or adapted to be used for the carriage of passengers for hire or reward, and includes a maxicab a motorcab, contract and stage carriage:”

“ 2(40) “stage carriage” means a motor vehicle constructed or adapted to carry more than six passengers excluding the driver for (SIC) or reward at separate fares paid by or for individual passengers either for the whole journey or for stages of the journey:”

“2(47) “transport vehicle” means a pubic services vehicle a goods carriage an educational institution bus or a private service vehicle:”(Underlined for emphasis)

10.“Liability” as defined in Section 145(c) of the Act reads as follows:

“Liability”, wherever used in relation to the death of or bodily
















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