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1984 Supreme(Kar) 254

Karnataka High Court
Mohammad Iqbal - Appellant
Versus
Bhimaiah - Respondent
Decided On : 10-15-84
M.F.A. : 47 of 1984

Advocates:
C.M.MONNAPPA, C.S.SHANTAMALLAPPA, DEVASUNDAR, GOWRI SHANKAR

The main legal point established in the judgment is the liability of the Insurance Company to pay compensation under Section 92-A of the Motor Vehicles Act, and the entitlement of claimants under 'no fault liability'.

Headnote:

Motor Vehicles Act - Liability under Section 92-A - Sections 92-A, 92-B, 92-C, 92-D, 92-E, 93, 95, 109-A, 109-B, 109-C, 110, 110-A, 110-AA, 110-B, 110-CC - The judgment discusses the liability under Section 92-A of the Motor Vehicles Act and the related provisions, including the amendment brought by the Motor Vehicles (Amendment) Act, 1982. The court clarifies the scope of liability, the entitlement of claimants under 'no fault liability', and the role of the Insurance Company in compensating under Section 92-A. The judgment emphasizes the expeditious disposal of claims and the award of interest on compensation.

Fact of the Case:

The case involves a motor-accident resulting in the death of a young boy. The claimants sought compensation under Section 92-A of the Motor Vehicles Act. The appeal questions the liability for compensation and the role of the Insurance Company in the payment.

Finding of the Court:

The court found that the Insurance Company is liable to pay the compensation awarded under Section 92-A, and directed the payment of the entire amount along with interest. It clarified the scope of liability, the entitlement of claimants, and the expeditious disposal of claims.

Issues: The key issue was whether the liability under Section 92-A should be solely against the owner of the vehicle or also extend to the Insurance Company.

Ratio Decidendi: The court interpreted the provisions of the Motor Vehicles Act, especially Section 92-A, and emphasized the inclusion of 'no fault liability' for claimants. It clarified the role of the Insurance Company in compensating under Section 92-A and the award of interest on compensation.

Final Decision: The appeal was allowed, and the court directed the Insurance Company to pay the entire compensation awarded under Section 92-A along with interest.

SABHAHIT, J.

( 1 ) THIS Appeal by the Owner of the vehicle in question is directed against the judgment and award dated 6-12-1983 made on I. A. I, given by the claimants ordering that Rs. 15,000/- shall be paid over by the second respondent, the owner of the vehicle, as compensation under Section 92-A of the Motor Vehicles Act to the claimants.

( 2 ) LEARNED Counsel appearing for the appellant submitted that the amount of Rs. 15,000/- awarded under Section 92-A should have been directed to be paid by the Insurer-3rd respondent in this appeal, as the vehicle was insured on the date of the accident, and the award made was within the liability of the insurer.

( 3 ) ON 6-6-1983 deceased Shrimanth, aged about 6 years, was involved in a motor-accident that occurred at 4. 00 P. M. , on Gulbarga-Sedam Road in front of the Government General Hospital. The bus-HKMS Service No. MYN 3510 caused the accident, resulting in the death of the young boy, namely, Shrimanth. His father made an application claiming compensation of Rs. 10,000/- before the Motor Accidents Claims Tribunal, Gulbarga, in MVC No. 51 of 1983 on its file. Therein, he gave an application I. A. I under Section 92-A, praying that Rs. 15,000/- should be awarded expeditiously and further enquiry should be held with regard to the claim based on actionable negligence. Accordingly, I. A. I. was taken up for consideration and the Tribunal being satisfied that the boy was killed in the motor -accident at the time and on the date mentioned in the petition, awarded Rs. 15,000/- as compensation payable under Sec. 92a against the owner of the vehicle in question.

( 4 ) THE learned Counsel appearing for the appellant submitted, as stated above, that the Insurance Company should have been made liable to pay the compensation, whereas, the learned Counsel for the Insurance Company submitted that as contemplated under Sec. 92a, the owner alone should be made liable and what is done by the Tribunal is just and proper.

( 5 ) THE short-point of law, therefore, that arises for our consideration in this appeal is : "whether Section 92a contemplates that the liability should be saddled only against the owner? Or it should be fixed as contemplated under Section 110b of the M. V. Act?"

( 6 ) SECTION 92a and other connected sections were incorporated in the M. V. Act, 1939, by Amending Act 47 of 1982, which received the assent of the President on 31-8-1982. The amending Act is called The Motor Vehicles (Amendment) Act, 1982. Sub-sec. (2) of Section 1 of that Act speaks of the application of the provisions. It states : " (2) It shall come into force on such date as the Central Government may, by notification in the official Gazette appoint and different dates may be appointed for different provisions of this Act. " and it is notified that, "sections 2 to 7 and Sections 10 to 27 of this Act shall come into force from 1st day of October 1982" - Vide Notification No. S. O. 669 (E) dt. 15th September 1982-Gaz of India, (Ex) Part II-Sec. 3 (ii)Part No. 412. It is further notified that "sections 8 and 9 of the said Act shall come into force from 10th day of December, 1982" - Vide Notification No. S. O. 869 (E) - dt. 31st December, 1982 - Gaz. of India part II-Sec. 3 (ii) (ex) - Part No. 564.

( 7 ) SECTION 92-A is sought to be incorporated into the main Act by Section 11 of the Amending Act, which as stated above, has come into force on the 1st day of October, 1982.

( 8 ) SECTION 11 of the Amending Act states : insertion of new chapter VIIA. After Chapter VII of the Principal Act:the following Chapter shall be inserted, namely :"chapter VIIA Liability without fault in certain cases; liability To Pay Compensation In Certain Cases On The Principle of No Fault.- 92a (1) Where the death or permanent disablement of any person has resulted from an accident arising out of the vehicle shall, or as the case may be, the owners of the vehicles shall, jointly and severally, be liable to pay compensation in respect of su





















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