IMPORTANT POINT
Application of “pay and recover” principle.

JUDGMENT :

Vineet Saran, J.

Leave granted.

2. These appeals are against the judgment and order dated 05.04.2016 passed by the High Court of Punjab and Haryana at Chandigarh relating to the claims for compensation in respect of injuries sustained by two gratuitous passengers in a jeep (goods vehicle). The Motor Accidents Claims Tribunal (for short “Tribunal”) had dismissed the claim petitions on the ground that the negligence of the driver was not proved. However, the High Court, after holding that the accident was as a result of composite negligence of the driver of the jeep and the other offending vehicle, held that the owner and driver of the jeep would be liable for payment of compensation and exonerated the insurer of the jeep, on the ground that the vehicle was insured as a goods vehicle and the claimants, who had sustained injuries, were gratuitous passengers in the goods vehicle (Jeep) and would thus not be covered under the insurance policy as they were not travelling as owner of the goods. The insurance of the jeep, as a goods vehicle, has been found to be valid.

3. In F.A.O. No. 5460 of 2012 before the High Court, the case was of one Anu Bhanvara, aged about fifteen years at the time of the accident, who, because of injuries sustained, had to have amputation of wrist resulting in 55% disability. The Tribunal assessed total compensation of Rs.5,26,000/-, which was after assessing disability compensation of 55% at Rs.50,000/-, loss of prospect of marriage at Rs.1,00,000/- and cost of artificial limb at Rs.3,76,000/-. The High Court enhanced the compensation to Rs.6,41,750/0, after awarding additional compensation for medical expenses, pain and suffering, income loss etc. in addition to what was assessed by the Tribunal.

4. In the other F.A.O. No. 5461 of 2012 before the High Court, the case was of one Rohit Kumar, aged about eighteen years at the time of accident, who, because of the injuries sustained in the accident, had to have his arm amputated below the elbow resulting in 70% disability. The Tribunal assessed total compensation of Rs.5,78,000/-, which was after assessing the disability compensation of 70% at Rs.50,000/-, income assessed at Rs.54,000/and cost of artificial limb at Rs.3,90,000/-. The High Court enhanced the compensation to Rs.7,36,000/-, after awarding additional compensation for medical expenses, pain and suffering, income loss etc. in addition to what was assessed by the Tribunal.

5. Challenging the said judgments of the High Court, these appeals have been filed by the claimants for enhancement of compensation and also to direct payment of compensation by the insurer.

6. We have heard Mr. S. L. Gupta, learned counsel for the appellants and Ms. Shanta Devi Raman, learned counsel for the respondent no.1insurer and have perused the material on record.

7. The questions now to be considered by this Court are two-fold; firstly, whether the amount of compensation awarded was adequate or not; and secondly, whether the payment of compensation is to be made jointly by the owner and driver of the vehicle, or by the insurer which could thereafter be recovered by the insurer from the owner and driver.

8. Having regard to the respective age of the two claimants and keeping in view that compensation has been awarded on all requisite heads by the High Court, we are of the opinion that no interference is called with regard to the quantum of compensation awarded to the two claimants.

9. The next question is as to which of the respondents, that is the owner and driver, or the insurer of the vehicle, would be liable for payment of such compensation. As regard the liability for payment of compensation, it has been contended by the learned counsel for the appellants that since the vehicle was admittedly insured with the respondent no.1-insurance company, the principle of pay and recover would be invoked even in case of a gratuitous passenger in a goods vehicle. The insurance company should thus be made liable for the payment of