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1992 Supreme(Kar) 61

Karnataka High Court
ORIENTAL INSURANCE COMPANY LIMITED, BANGALORE - Appellant
Versus
Hanumanthappa - Respondent
Decided On : 02-10-92
M.F.A. : 988 of 1958

Advocates:
H.Kantharaj, S.F.SHANKAR, S.R.Shivaprakash

The main legal point established is that under Section 95 of the Motor Vehicles Act, the Insurance Company is liable to pay compensation for employees traveling in a tractor-trailer, subject to the specified limits.

Headnote:

Motor Vehicles Act - Liability of Insurance Company for Tractor-Trailer - Section 95

Fact of the Case:

The case involved an accident caused by a tractor-trailer resulting in severe injuries and death of laborers. The issue was whether the Insurance Company is liable to pay compensation for the accident.

Finding of the Court:

The court found that the tractor-trailer falls within the definition of 'goods vehicle' under Section 2(8) of the Motor Vehicles Act, making the Insurance Company liable for compensation. The liability was limited to six employees and the amount payable under the Workmen's Compensation Act.

Issues: The main issues were the liability of the Insurance Company for the accident caused by the tractor-trailer and the extent of compensation payable.

Ratio Decidendi: The court held that under an 'act Policy', the Insurance Company is liable to pay compensation for employees traveling in a tractor-trailer, subject to the limits specified in Section 95(2) of the Act.

Final Decision: The court partially allowed one appeal, restricted the liability of the Insurance Company in another, and dismissed the third appeal, based on the extent of compensation payable under the Workmen's Compensation Act.

M. RAMAJOIS, J.

( 1 ) IN these three appeals presented under Section 110-D of the Motor Vehicles Act, 1939, the following two questions of law arises for consideration: (1) Whether the Insurance Company with which a Tractor and a Trailer propelled by the tractor are insured, is liable to pay compensation in respect of death or bodily injury to persons travelling in the trailer? and (2) If the answer to the first question is in the affirmative, what is the extent of liability of the Insurance Company?

( 2 ) BRIEFLY stated, the facts of the case are these: On 5-3-1985 the Tractor-Trailer bearing Registration Nos. MEU 9801 and 9802 respectively were being used for the purpose of transporting Country manure from Hottiganahally village to the land of respondent-1. After unloading the manure, when the tractor was on its way back to Hittiganahally there was an accident. As a result, three employees, who were engaged as labourers for loading and unloading manure, and who were travelling in the trailer sustained severe injuries and died as a result of the injuries so sustained. Three claim petitions were presented. They are: (I) M. V. C. No. 469/1985, in which the petitioner-claimant claimed compensation for the death of his wife Halamma, aged 30 years on the allegation that the accident has occurred on account of the rash and negligent driving of the tractor-trailer by its driver. The claimant stated that she was a labourer on a monthly income of Rs. 250/ -. He claimed compensation of Rs. 1 lakh. (ii) M. V. C. No. 437/1985 was presented by the parents of the deceased Ananda, who was aged 16 years on the allegation that their son Ananda was employed on a monthly income of Rs. 100/- and while he was engaged for the purpose of transporting Country manure and was travelling in the trailer, he died due to the accident caused on account of rash and negligent driving of the tractor-trailer. (iii)M. V. C. No. 435/1985 was presented by the claimant claiming compensation for the deatb of his wife Gangamma, who was aged 28 years on the allegation that the accident occurred on account of rash and negligent driving of the tractor-trailer by its driver. The claimant stated that she was a labourer on a monthly income of Rs. 300/ -. He claimed a compensation of Rs. 1 lakh.

( 3 ) THE first issue for consideration by the Tribunal was, as to whether the accident occurred on account of the rash and negligent driving of the tractor-trailer by its driver. The issue was answered in the affirmative. As regards the quantum of compensation, the Tribunal awarded a compensation of Rs. 21, 400/- in M. V. C. No. 469/1985; Rs. 29,000/- in M. V. C. No. 437/1985 and Rs. 23, 800/- in M. V. C. No. 435/1985. The Tribunal fixed the liability both on the owner of the vehicle-lst respondent and also the insurer of the tractor-trailer MEU 9801-9802, namely, the oriental Fire and General Insurance Company. Aggrieved by the said order, the appellant-Insurance Company has presented these appeals.

( 4 ) IN these appeals, the contention of the appellant is that the Tribunal could not have fixed any liability on the appellant, for the reason that the tractor-trailer could be used only for agricultural purposes and cany only agricultural implements and other materials connected wilh agricultural operations and that no person could be carried legitimately in the trailer and therefore the Insurance Company was not liable.

( 5 ) AS against the above contention of the appellant-Insurance Company, it is contended for the claimants that the tractor-trailer was a 'goods vehicle' within the definition of that word contained in Section 2 (8) of the Act and therefore the insurance Company was liable to pay compensation in respect of the employees carried in the trailer as also the driver of the tractor in terms of Section 95 of the Act.

( 6 ) THE first point therefore for our consideration is, whether a tractor- trailer falls within the definition of the words "goods vehicle". In order to de






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