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1978 Supreme(Kar) 168

Karnataka High Court
K. BHIMIAH,N. VENKATACHALA
Channappa Chanavirappa Katti - Appellant
Versus
Laxman Bhimappa Bajantri - Respondent
Misc. First Appeals Nos. 227 and 363 of 1975
Decided On : 06/26/1978

Advocates:
S.K. Kulkarni (in MFA No. 227 of 1975) and Jayavittal Kolar (in MFA No. 363 of 1975) for Appellants. B.V. Deshpande (For No. 1); C. Srinivasa Iyengar and R. Narayan (For No. 3) S.G. Sundara Swamy and P.R. Srinivasan (for No. 4) in MFA No. 227 of 1975 and S.K. Kulkarni (For No. 2); C. Srinivasa Iyengar and R. Narayan (For No. 3); in MFA No. 363 of 1975, for Respondents.

The main legal point established in the judgment is the vicarious liability of the owner of the goods vehicle for the compensation due to the negligent conduct of the driver, and the liability of the insurer for the compensation for the death of the owner of the goods as a passenger for hire in the insured vehicle.

Headnote:

MOTOR VEHICLES - LIABILITY - Motor Vehicles Act, 1939, Section 110-D - The court found that the owner of the goods vehicle was liable for the compensation for the death of the passengers due to the negligent conduct of the driver. The court also held that the insurer was liable for the compensation as the deceased owner of the goods was a passenger for hire in the insured vehicle. The court affirmed the compensation amounts and modified the decrees of the Tribunal accordingly.

Fact of the Case:

A goods vehicle met with an accident causing the death of passengers. The claimants filed for compensation under Section 110-A of the Motor Vehicles Act, 1939. The Tribunal found the driver guilty of rash and negligent conduct and fixed compensation amounts. The correctness of the Tribunal's order and separate awards were challenged in the appeals.

Finding of the Court:

The court found the driver guilty of rash and negligent conduct, affirmed the compensation amounts, and held the owner of the goods vehicle and the insurer liable for the compensation. The court also found that the goods vehicle was a vehicle in which passengers are carried for hire or reward, making the insurer liable for the compensation for the death of the owner of the goods.

Issues: The issues included the liability of the driver, owner of the goods vehicle, and the insurer for the compensation, as well as the interpretation of the insurance policy and the provisions of the Motor Vehicles Act, 1939.

Ratio Decidendi: The court held that the owner of the goods vehicle was vicariously liable for the compensation due to the negligent conduct of the driver. The court also interpreted the insurance policy and the provisions of the Motor Vehicles Act, 1939 to find the insurer liable for the compensation for the death of the owner of the goods.

Final Decision: The court allowed the appeals, affirmed the compensation amounts, and modified the decrees of the Tribunal. The court held the owner of the goods vehicle and the insurer liable for the compensation.

Judgement

VENKATACHALA, J. :- M.F.0A. Nos. 227 and 363 of 1975 under Section 110-D of the Motor Vehicles Act, 1939 (to be referred to as the Act), have arisen from the common order and separate awards dated 28-2-1975 of the Motor Vehicles Accidents Claims Tribunal (to be referred to as the Tribunal), Bijapur, made in Misc. Cases Nos. 38 and 28 of 1973 - claim cases filed under Section 110-A of the Act.

2. The material facts and circumstances leading up to these appeals lie in a narrow compass and they may be summarised thus : A goods vehicle bearing registration No. MYR 3739 was being used by its owner, a public carrier, for carriage of goods from Bijapur to Talikot. On 3-3-1973, when the said vehicle was carrying goods from Bijapur to Talikot, it met with an accident at 6 P.M. near a place called Hitnalli as the driver of the vehicle failed in his attempt to successfully negotiate the vehicle in a sharp curve on the road. As a result of the accident, six persons in the vehicle including one Somappa Mallappa Nidagundi of Talikot, the owner of certain goods who had hired the vehicle for carrying the goods and Balappa Bajentri, the cleaner of the vehicle, sustained fatal injuries and died of those injuries. Laxman Bhimappa Bajentri (to be referred to as Laxman) filed Claim Case No. 38 of 1973 claiming compensation in a sum of Rs. 40,000/- for the death of Balappa Bajentri (Cleaner) and Mallappa Malkajappa Nidagundi (to be referred to as Mallapga) filed Claim Case No. 28 of 1973 claiming compensation in a sum of Rs. 4,24,000/- for the death of Somappa Mallappa Nidagundi (owner of the goods). The claims for compensation were made against (1) Yeli Budeppa Bankapur, the owner of the vehicle, (2) Channappa Channaveerappa Katti, agent of the owner who was in charge of the management of the vehicle, (3) Bhimappa Balappa Bajentri, driver of the vehicle, and (4) Madras Motor and General Insurance Co., Ltd., later merged. with United India Fire and General Insurance Co. Ltd., the insurer of the vehicle. In the claim applications made before the Tribunal at Bijapur by Laxman and Mallappa, it was alleged that the driver of the vehicle was guilty of rash and negligent conduct in driving the vehicle and the accident was the result of such rash and negligent conduct of the driver giving rise to an actionable wrong. The owner of the vehicle and the agent of the owner of the vehicle, in the common objection-statement filed in the cases, besides denying the allegations of rash and negligent conduct of the driver in driving the vehicle, specifically pleaded that since the agent was in charge of the management of the vehicle on behalf of the owner, the agent cannot become liable for payment of the compensation. The driver of the vehicle, in the objection-statement filed by him, denied the allegations of rash and negligent conduct in driving the vehicle made against him. In the objection-statement filed by the insurer in Claim Case No. 38 of 1973, though it admitted that the risk for the cleaner was covered by the insurance policy issued in respect of the vehicle, it pleaded its non-liability to the claim for compensation made against it an the ground that the ownership of the vehicle on the date of the accident was not with the policy-holder. Again, in the objection-statement filed by the insurer in Claim case No. 28 of 1973, it pleaded its non-liability to the claim made against it for compensation on two grounds, namely, (i) that the ownership of the vehicle was not with the policy-holder on the date of the accident, and (ii) that the claim for compensation did not relate to the death of a person whose risk was required to be insured against compulsorily under the Act. Thus, from the objection-statements of the insurer, it can be seen that the non-liability pleaded by the insurer on the ground of ownership of the vehicle not being with the policyholder on the date of the accident was common to both cases; and the non-liability for the claim for com


































































































































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