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2023 Supreme(AP) 745

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V. GOPALA KRISHNA RAO, J.
The New India Assurance Co. Ltd. – Petitioner
Versus
Kommara Syamala and Others – Respondents
M.A.C.M.A. No. 3691 of 2012
Decided On : 17-07-2023

Advocates:
Advocate Appeared:
For the Petitioner: Amancharla Satish Babu.
For the Respondent: Parimi Rama Rayudu.

The main legal point established in the judgment is the liability of the insurance company to satisfy the award in favor of a third party, even in the absence of a valid driving license or disqualification of the driver for driving, as per the provisions of the Motor Vehicles Act and relevant case law.

Headnote:

Motor Vehicles Act - Compensation - Section 166 - Summary of Acts and Sections: Motor Vehicles Act, Section 166 - The court discussed the provisions of Section 166 of the Motor Vehicles Act, which deals with the compensation for the death of a person in a motor vehicle accident. The court highlighted the legal principles established in the cases of National Insurance Co. Ltd. vs. Swaran Singh and Others, AIR 2004 SC 1531 and New India Assurance Co. Ltd. vs. Roshanben Rahemansha Fakir and Another, AIR 2008 SC 2266, which held the insurance company liable to satisfy the award in favor of a third party, even in the absence of a valid driving license or disqualification of the driver for driving. The court also emphasized the application of the pay and recovery principle in determining the liability of the owner and the insurance company.

Fact of the Case:

The claimants filed a petition under Section 166 of the Motor Vehicles Act, claiming compensation for the death of the deceased in a motor vehicle accident. The Tribunal awarded compensation to the claimants, holding the driver of the offending vehicle liable for the accident and fixing the liability on the owner and the insurance company.

Finding of the Court:

The court found that the accident occurred due to the rash and negligent driving of the driver of the offending vehicle. It upheld the compensation awarded by the Tribunal, considering the loss of dependency and other expenses incurred by the claimants.

Issues: The issues included determining the cause of the accident, entitlement to compensation, and the relief to be granted to the claimants.

Ratio Decidendi: The court relied on the evidence presented by the claimants to establish the negligent driving of the driver, and applied the multiplier principle to calculate the compensation for loss of dependency. It also emphasized the liability of the insurance company to satisfy the award in favor of the claimants.

Final Decision: The appeal was dismissed, confirming the award of the Tribunal, and no costs were imposed. Any pending miscellaneous petitions were ordered to be closed.

JUDGMENT :

V. GOPALA KRISHNA RAO, J.

1. Aggrieved by the impugned decree and order passed in M.V.O.P.No. 760 of 2006, on the file of the Motor Vehicle Accident Claims Tribunal-cum-Principal District Judge, Rajahmundry, East Godavari District, whereby the Tribunal awarded an amount of Rs.3,34,154/- towards compensation, this instant appeal is preferred.

2. Both the parties in the appeal will be referred to as they are arrayed in claim application.

3. The aforesaid M.V.O.P.No. 760 of 2006 was filed by the claimants, under Section 166 of the Motor Vehicles Act, claiming an amount of Rs.9,00,000/- with interest at the rate of 12% per annum towards compensation for the death of Kommara Mohana Rao in a motor vehicle accident that occurred on 12.07.2006. 1st claimant is the wife, 2nd and 3rd claimants are the children and 4th claimant is the mother of the deceased.

4. The brief averments of the claim petition are as follows:

    On 12.07.2006 while the deceased Kommara Mohana Rao started from Kovvur to Tallapudi on an Auto bearing No. AP 5V 8182 and at about 7:00 p.m. he reached near Chidipi sand ramp on Kovvur to Tallapudi Godavari bund road and then 1st respondent drove his Auto bearing registration No. AP 5V 8182 in a rash and negligent manner at high speed and dashed another Auto bearing No. AP 37W 4652 which was coming in the opposite direction due to which the deceased received grievous injuries and died on 13.07.2006 while undergoing treatment in the Government Hospital, Rajahmundry. A case in Crime No. 61/2006 was registered by the Police, Tallapudi Police Station against 1st respondent/driver of the offending vehicle Auto. 1st respondent is the driver and 2nd respondent is the owner and 3rd respondent is the insurer of the offending vehicle Auto.

5. The petition against 1st respondent has been dismissed for non-payment of process, 2nd and 4th respondents have remained ex-parte.

6. 3rd respondent filed a written statement denying the material pleas taken by the claimants.

7. Based on the above pleadings of both the parties, the Tribunal framed the following issues:

    1. Whether the accident occurred due to the rash and negligent driving of the Auto bearing registration No. AP 5V 8182 and Auto bearing registration No. AP 37W 4652?

2. Whether the petitioners are entitled for the compensation amount as claimed? If so, from which of the respondents?

3. To what relief?

8. During the course of enquiry, on behalf of the claimants, P.Ws.1 to 3 were examined and got marked Exs.A1 to A6 and Exs.X1 to X3. On behalf of the contesting respondents, R.W.1 was examined and got marked Exs.B1 and B2.

9. At the culmination of the enquiry, on considering the entire material on record, the Tribunal awarded compensation of Rs.3,34,154/- with interest at the rate of 7.5% per annum from the date of petition till the date of realization of the amount payable by 2nd respondent/owner of the offending vehicle Auto and if he fails to pay the same, 3rd respondent/Insurer of the offending vehicle Auto has to pay the amount and later the Insurance Company is at liberty to recover the amount from 2nd respondent/owner of the vehicle. Aggrieved thereby, 3rd respondent/Insurance Company has filed the present appeal.

10. Now, the point for consideration is:

    Whether the order of the Tribunal needs any interference in the appeal? If so, to what extent?

POINT:

11. In order to prove the rash and negligent driving of the driver of the offending vehicle Auto, the claim petitioners relied on the oral and documentary evidence. The claim petitioners relied on Ex.A1-Copy of First Information Report and Ex.A5-Copy of Charge Sheet. The material on record proves that the accident in question is occurred due to rash and negligent driving of the driver of the offending vehicle Auto bearing No. AP 5V 8182. Ex.A1 goes to show that the First Information Report was registered against the driver of the driver of the offending vehicle Auto. After due investigation, the Investigating Officer laid the Charge

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