IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
B. SIVA SANKARA RAO, J.
Oriental Insurance Company Limited - Appellant
Versus
Korva Manjula & Others - Respondent
C.M.A. Nos. 205 of 2004, 206 of 2004 & Cross Objections SR.Nos. 20364 of 2004 & 20366 of 2004
Decided on : 10-06-2016
Motor Vehicles Act, 1988 – Section 166 – Accident – Claiming Compensation – Injuries – Allegedly sustained by them while travelling in the tractor and trolley from the vehicle turned turtle while in journey on date of accident occurred due to rash and negligent driving and from the report, after investigation filed charge sheet against the driver of the said vehicle i.e., trolley propelled to tractor, that belong to 2 different owners, claim petitions R.1 and R.3 both insured respectively with Oriental Insurance Company Limited and New India Assurance Company Limited, claim petitions R.2 and R.4 – Tribunal after contest, particularly by both insurers, held by the award respectively in both claim petitions, awarded compensation respectively of Rs.1,01,500/- and Rs.1,87,000/- with interest @ 9% per annum with joint liability on owner and insurer of the tractor i.e., claim petitions respondent Nos.1 and 2 only by exonerating the insurer and owner of the trolley – Held, Tribunal can apportion and fix the liability respectively among the respondents inter se though otherwise of the joint liability are equally liable. So far as rate of interest granted at 9%, it is one of the contentions of the counsel for the insurer that the interest awarded is excessive – In fact even latest Three Judge Bench of the Apex Court in Rajesh Vs. Rajbir singh (2013 ACJ 1403) it is clearly laid down that interest at 7.5% is just and reasonable and same is the expression of the Apex Court in TN Transport Corporation v. Raja Priya (2005) 6 SCC 236) referring to steep fall in bank lending rate that interest at 7.5% p.a. is just and reasonable. Accordingly, interest is reduced from 9% to 7.5% per annum – It is made clear from the settled expressions of the Apex Court in United India Insurance Co. Ltd. V. Lehru (JT-2003 (2) SC 595 : 2003 ACJ 611) & Oriental Insurance Company Limited Vs. Nanjappan & Others (2004) 13 SCC 224 : 2004-SAR(civil)-290) that the insurer is entitled, while depositing the amount payable, if not deposited or paid any amount so far to deposit in bank to approach the Tribunal to direct the RTA concerned not to register any transfer of the crime vehicle and to seek for attachment of the crime vehicle or other property of the insured as an assurance for execution and recovery in the same proceedings or under revenue recovery as per MV Act, 1988 and also ask Tribunal not to disburse the deposited amount to claimant till such attachment order is made – Appeals are partly allowed. (Paras 10 and 11)
1. The two injured claimants, by name Korva Manjula and Pitla Sudershan, respectively maintained the two claim petitions in O.P.Nos.253/1998 and 288/1998 under Section 166 of Motor Vehicles Act, 1988 (for short the Act) claiming compensation of Rs.2,00,000/- in each, for the injuries allegedly sustained by them while travelling in the tractor and trolley bearing Nos.AP-25-D-6768 and ADB 1248, from the vehicle turned turtle while in the journey on the date of accident dated 20.03.1998 at about 05.00 PM within the limits of PS Makloor, due to rash and negligent driving and from the report, police registered crime No.15/1998 covered by Ex.A.1 respectively and after investigation filed charge sheet against the driver of the said vehicle i.e., the trolley propelled to the tractor, that belong to 2 different owners, claim petitions R.1 and R.3 by name Chitti Laxmi Narsaiah and Neelam Bhasker, both insured respectively with Oriental Insurance Company Limited and New India Assurance Company Limited, claim petitions R.2 and R.4.
2. The Tribunal after contest, particularly by both the insurers, held by the award dated 23.07.2002 respectively in both the claim petitions, awarded compensation respectively of Rs.1,01,500/- and Rs.1,87,000/- with interest @ 9% per annum with joint liability on owner and insurer of the tractor i.e., claim petitions respondent Nos.1 and 2 only by exonerating the insurer and owner of the trolley.
3. It is impugning the same, the 2nd respondent i.e., insurer of the tractor by name Oriental Insurance Company Limited maintained the two present appeals supra. The claimant respectively in each of the two claim petitions covered by the two appeals maintained cross objections.
4. Heard the learned counsel for the insurer vis-a-vis learned counsel for the claimant respectively and at their request to take both the matters for common disposal with the respective cross objections taken up together for disposal and perused the material on record.
5. The finding of the Tribunal respectively in both the claim petitions in fixing the liability against R.1, owner of the tractor and its insurer R.2 is that the evidence on record shows it is due to rash and negligent driving of the driver of the tractor to which the trolley was propelled, proving from the Ex.A.1-FIR and A.2-charge sheet vis-a-vis the evidence of the injured respectively and with reference to Ex.A3-injury certificate respectively. RW.1 is the employee of 2nd respondent insurer of the tractor and no witness even was examined on behalf of the R.4 insurer, but for both the policies marked by consent as Ex.A6 and A7 respectively. The Tribunal in its finding having held the accident was the result of rash and negligent driving of the driver of the tractor to which the trolley is propelled and in which trolley the injured persons were sitting and travelling, could assign no reason to exonerate the respondent Nos.3 and 4 in fixing the liability against respondent Nos.1 and 2. In the grounds of appeal by the tractor insurer, it is the contention that when injured persons were sitting and travelling in the trolley propelled to the tractor that belongs to R.3 insured with R.4, the insurer and owner of tractor alone cannot be made liable, but for if at all of the owner and insurer of the trolley also with joint liability. It is also the contention that the Tribunal went wrong in fixing the liability on insurer ignoring the factum of the injured persons are unauthorized and gratuitous passengers in the goods trolley and not entitled to any compensation against the insurers to indemnify the respective owners but for against the owners including under Section 147 of the Act.
6. The contentions in the cross objections filed by the respective two claimants are in impugning the quantum of compensation as utterly low, while saying otherwise the award fixing liability of insurer to indemnify holds good for any insurer to pay and share from other as joint tort features.
7. Bef
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