2024 Supreme(AP) 1523
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Nyapathy Vijay, J.
National Insurance Co. Ltd., Proddatur – Appellant
Versus
Savidi Anjaneyulu and others – Respondent
CMA No.244 of 2011
Decided On : 15-10-2024
Advocate Appeared:
For the Appellant : (Mrs.) A. Jayanti
For the Respondent: K. Dhanunjaya Reddy
The amended definition of 'third party' in the Motor Vehicles Act includes drivers, allowing them to claim compensation, applying retroactively.
Headnote:(A) Employees Compensation Act - Section 30 - Motor Vehicles Act, 1988 - Section 145(i) - Appeal against compensation order - Clarificatory amendment defining 'third party' to include drivers - The appellant contested that the policy did not cover the driver as he was an employee. The court confirmed that, post-amendment, drivers are eligible for compensation as third parties. (Paras 9-14)
(B) The amendment is clarificatory and applicable retroactively - The court found the amendment to have retrospective effect, rejecting the appellant's contention that the deceased driver could not claim compensation under an act-only policy. (Paras 12-14)
Facts of the case:
The claimants, parents of the deceased driver, sought compensation after an accident during employment, leading to a compensation award of Rs.3,48,944/- by the Commissioner.
Findings of Court:
The commissioner held the respondents liable and awarded compensation, confirming that the insurance policy applies to the driver’s claim.
Issues: The principal issue was whether the driver was a third party under the insurance policy for claiming compensation.
Ratio Decidendi: The court reasoned that the clarificatory amendment to the definition of third party encompasses drivers, affirming their right to compensation despite his employment status.
Result: Appeal dismissed.
| Table of Content |
|---|
| 1. overview of the appeal and background of the case. (Para 1 , 2) |
| 2. details of accident and compensation claim. (Para 3 , 4 , 5 , 6) |
| 3. contention regarding definition of 'third-party'. (Para 8) |
| 4. clarification of third-party definition amendments. (Para 9 , 10 , 11 , 12) |
| 5. retrospective effect of clarificatory amendments. (Para 13 , 14) |
| 6. conclusion and dismissal of appeal. (Para 15) |
JUDGMENT :
The present appeal is filed under Section 30 of the Employees Compensation Act, questioning the order dated 16.03.2009 in WC No.119 of 2005 passed by the Commissioner for Workmen's Compensation and Assistant Commissioner of Labour, Kadapa.
2. The parties are referred to as per their nomenclature before the Commissioner.
3. The facts leading to this appeal are as under :
The claimants are the father and mother of deceased driver by name Savidi Ramanjaneyulu. The deceased was working as a driver in the mini-lorry Bearing No.AP04-U-2986 which was owned by opposite party No.1 and insured with opposite party No.2 vide Policy No.50160/31/03/13570. While the deceased along with cleaner Ramanath Reddy @ Chinna were travelling with a load of banana fruits, at about 03.50 a.m., on 19.02.2005 near Chandur Cross Road on NH-7, the mini lorry dashed the rear side of lorry Bearing No.AP 22 T 5571 as the driver of the said lorry applied sudden brakes and stopped the vehicle. In the accident, the deceased and cleaner sustained severe injuries and the deceased driver succumbed to the injuries. A case was registered by Bagepali P.S. as Crime No.32 of 2005 under Sections 279, 337 and 304 of I.P.C. Since, the accident occurred in the course of employment and as the deceased was aged about 31 years and was being paid monthly wages of Rs.5,000/- per month, the claim was filed by the claimants the deceased for Rs.5,00,000/-.
4. Opposite Party No.1 employer remained ex parte and the Insurance Company i.e., opposite party No.2 filed its counter denying the coverage of insurance as no extra premium was paid by the opposite party No.1 to cover the risk of the driver.
5. The claimants got marked Exs.A1 to A11 while the insurance company got marked Ex.B1. The father of the deceased examined as AW1, while an employee of the insurance company had examined as RW1.
6. The Commissioner after taking into consideration the respective contentions and evidence on record held that the respondents therein are jointly and severally responsible and awarded compensation of Rs.3,48,944/-. Hence, the present appeal is filed.
7. Heard Smt. A. Jayanthi, learned Counsel for the appellant and there was no representation for the respondents.
8. The only contention urged in the grounds of appeal was that the policy would not apply to cover the risk of the deceased driver. In elaboration, it was contended that the driver being an employee cannot be termed to be third party for claiming compensation in an act only policy.
9. The term third party is defined under Section 145 coming under Chapter-XI of the MOTOR VEHICLES ACT , 1988 (for short "the Act"). Vide Amending Act No.32 of 2019, certain amendments were brought to the Act. The amended definition of Section 145 (i) of the Motor Vehicles (Amendment) Act, 2019 which came into effect from 09.08.2019 reads as under :
(i) "Third party" includes the Government, the driver and any other co-worker on a transport vehicle.
10. Pursuant to the amendment, for the purpose of compensation, it is clarified that driver and any other co-worker on a transport vehicle is considered as a third party and are entitled for compensation.
11. Prior to amendment, Section 145 (g) of the Act reads as under :
"(g) "third party" includes the Government".
12. The definition of third party prior to amendment was not elaborate and this led to controversy whether the drivers and others come within the definition of third party for the purpose of claiming compensation under the Act. The amendment to Section 145 (i) is clarificatory in nature and apparently to re