1999 Supreme(AP) 573
Andhra Pradesh High Court
Judges : Y.V.NARAYANA
New India Assurance Company Ltd. - Appellant
Versus
Gude alias Avula Narasimhulu - Respondent
Decided On : 08-02-99
Headnote:MOTOR VEHICLES ACT, 1939 - Secs. 92-A& 140 - Liability of Insurance Company under “No Fault Liability” - Some passengers travelling in Tractor died and some received injuries in the accident due to rash and negligent driving of the driver - Vehicle was not used for purpose for which it was originally insured - Insurance Company not liable to pay compensation even under fault liability principle also.
( 1 ) THESE two CMAs. have been preferred by the Insurance Company against the common order passed OP Nos. 268 of 1993 and 271 of 1993 respectively on the file of the Motor Accidents Claims Tribunal, Cuddapah, dated 28-10-1997. The above OPs. were filed claiming compensation under no fault liability under the provisions of the Motor Vehicles Act.
( 2 ) A brief account of the accident which gave rise to the filing of the aforementioned OPs is as follows :on 26-1-1993 at about 2. 00 p. m. , on Cuddapah-Rayachoty road near Bandaplli, the tractor bearing Registration No. AP 04-T-1993 belonging to the 3rd respondent herein (R1 in the OPs.) was driven in a rash and negligent manner by its driver in high speed and when he tried to give way to an RTC bus which was coming behind, due to the high speed of the tractor, the driver of the tractor could not control the tractor. As a result, the tractor turned turtle and some of the passengers who were travelling in the tractor received injuries and three persons died. The persons who died in the accident are- (1) Glide @ Avula Anjaneyulu; (2) Glide Dasanna; and (3) Sanigala Yerra Bayanna. The legal representatives of the aforementioned deceased persons filed OPNos. 268 of 1993, 270 of 1993 and 271 of 1993 claiming compensation under no fault liability . They also filed OP Nos. 269 of 1993, 274 of 1993 and 273 of 1993 respectively claiming compensation under fault liability . While so, the injured persons filed OP Nos. 417 of 1993, 418 of 1993, 419 of 1993, 549 of 1993, 548 of 1993, 550 of 1993 claiming compensation for the injuries sustained by them under fault liability . The Tribunal conducted common enquiry in all these OPs. and passed common order on 28-10-1997, holding on issue No. 1 in all the OPs. that the motor accident was due to the fault of the driver of the tractor of the 1st respondent-owner. On issue No. 2 in all the OPs. which were filed claiming compensation under no fault liability , the Tribunal awarded compensation of Rs. 25,000. 00 to each of the claimants but, however, ordered that the said compensation amount shall be part and parcel of the compensation that is awarded under fault liability in the other OPs. In the OPs. which were filed by the claimants of the deceased persons seeking compensation under fault liability (i. e. , OP Nos. 269/93, 274/93and 273/93), the Tribunal held that the claimants arc entitled to compensation under this head also and accordingly awarded a sum of Rs. 1,00,000. 00, Rs. 1,20,000. 00 and Rs. 1,55,000. 00 respectively. The Tribunal also awarded compensation to the injured person also who filed OP Nos. 417, 418, 419, 547, 548 and 550 of 1993 under fault liability . " As already stated, these two CMAs. have been filed against the award of compensation to the claimants in OP Nos. 268 and 271 of 1993, who are the legal representatives of the deceased person namely Glide @ Avula Anjaneyulu and Sanigala Yerra Bayanna respectively under no fault liability.
( 3 ) IT is contended by the learned Counsel for the appellant-Insurance Company that the vehicle in question is meant for agricultural purposes only and the Insurance Policy issued for the said vehicle covers the liability, if any, only if the vehicle is met with an accident while attending to agricultural operations. In this case, the vehicle met with an accident while carrying passengers, which is prohibited under the contract of insurance and, therefore, the insurer cannot be made liable. It is further contended that the insurer cannot be fastened with any liability under no fault liability when it is not liable for fault liability. In support of his contention, the learned Counsel place reliance upon a judgment of the Apex Court, reported in National Insurance Company Limited v. Jethu Ram and others, 1998 ACJ 921.
( 4 ) IN the instant case, the accident took place on 26-1-1993. On that day, the tractor in question, which was carrying one Gude @ Avula Anjaneyu