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IN THE HIGH COURT OF KARNATAKA
Hon'ble Justice V.G. Sabhahit, J.
Oriental Insurance Company Limited - Appellant
Vs.
Basavaraju and others - Respondent
Decided on : 31-05-2002
Insurance Company - Workmen's Compensation - Motor Vehicles Act, Section 149
Fact of the Case:
The appeal was filed by the Insurance Company against the judgment and award of the Workmen's Compensation Commissioner, which held the Insurance Company liable to pay compensation to the claimants for the death of an employee in a motor accident. The Insurance Company contended that the policy covering the vehicle was cancelled before the accident, and thus, it was not liable to pay compensation.
Finding of the Court:
The court found that the Insurance Company was not liable to pay the compensation as the policy covering the vehicle had been cancelled before the accident, and therefore, the judgment and award of the Workmen's Compensation Commissioner were set aside, dismissing the claim petition against the Insurance Company.
Issues: The issues were whether the Insurance Company was justified in holding the liability to pay compensation and whether the judgment and award of the Workmen's Compensation Commissioner called for interference.
Ratio Decidendi: The court held that the policy covering the vehicle had been cancelled before the accident, and therefore, the Insurance Company was not liable to pay compensation. The court also referred to Section 149 of the Motor Vehicles Act, which enables the Insurance Company to recover the amount from the owner, but in this case, as there was no liability to pay compensation, the question of the Insurance Company recovering the amount from the owner did not arise.
Final Decision: The appeal was allowed, setting aside the liability on the Insurance Company and dismissing the claim petition against the Insurance Company. The claimants were allowed to recover the compensation award from the owner and another respondent, and the amount deposited by the Insurance Company was to be refunded to the appellant.
V.G. Sabhahit, J.--This appeal by the Insurance Company/second respondent in No. CWCB-4/WCA/FC/CR-2/98 on the file of Commissioner for Workmen's Compensation, Bangalore Division - IV, Bangalore is directed against the judgment and award dated 31.1.2000.
2. The essential facts of the case necessary for the disposal of this appeal are as follows:
The parties would be referred to with reference to their rank before the Workmen's Compensation Commissioner.
The parents of the deceased Sri Kumara @ Kulla filed a claim petition seeking compensation of Rs.2,24,000/- from the respondents being the owner and insurer of the lorry bearing No. KA-05-A-8829 towards the death of Sri Kumara @ Kulla due to the injuries sustained in a motor accident that occurred on 15.11.1997 at about 2.30 a.m. on Bangalore - Mangalore (NH-48) Road near Tiptur due to the rash and negligent driving of the above said lorry by its driver.
3. The petition was resisted by the respondents. Respondent No. 2 Insurance Company contended that the cheque issued towards premium of the policy was dishonoured and thereby, the policy had been cancelled on 25.7.1997 and the same was intimated to the owner and therefore/ on the date of the accident i.e., on 15.11.1997, there was no policy covering the vehicle belonging to the first respondent and therefore, it is not liable to pay the compensation.
4. The Workmen's Compensation Commissioner after considering the material on record, by his judgment dated 31.1.2000 held that Sri Kumara @ Kulla died due to the injuries sustained in the motor accident that occurred on 15.11.1997 at about 2.30 a.m. due to the rash and negligent driving of the lorry bearing No. KA-05-A-8829 by its driver and the claimants being the parents of the deceased are entitled to compensation of Rs.2,24,000/- with interest at 12% p.a. from 15.11.1997 till the date of the order and held that respondent Nos. 1 and 2 i.e., the owner and insurer of the vehicle are liable to pay the compensation being aggrieved by the said judgment and award insofar as it relates to saddling the Insurance Company of the liability to pay the compensation to the claimants, the Insurance Company has preferred this appeal.
5. I have heard the learned Counsel appearing for the appellant and the learned Counsel appearing for respondent Nos. 1 and 2. Respondent No. 3 though served with notice has not chosen to appear before this Court.
6. Having regard to the contentions urged, the points that arise for determination in this appeal are as follows:
(i) Whether the Workmen's Compensation Commissioner was justified in holding that the Insurance Company/the appellant herein is liable to pay the compensation awarded to the claimants?
(ii) Whether the judgment and award which is impugned in this appeal calls for interference in this appeal?
(iii) What order?
and I answer the above points for determination as follows:
(i) In the negative.
(ii) In the Affirmative
(iii) As per final order for the following reasons:
7. he Workmen's Compensation Commissioner has held that Kumara @, Kulla who was employed as a Cleaner in the lorry bearing No. KA-05-A-8829 belong to the first respondent and insured with the-second respondent died due to the injuries sustained in an accident that occurred on 15.11.1997 and the claimants are entitled to compensation from respondent Nos. 1 and 2. The Insurance Company has specifically contended before the Workmen's Compensation Commissioner that on the date of the accident i.e., on 15.11.1997, there was no policy covering the lorry bearing No. KA-05-A-8829 belonging to the first respondent as the policy that had been issued in favour of the first respondent covering the said vehicle was cancelled as the cheque which had been issued towards premium amount was dishonoured and therefore, the Insurance Company is not liable to pay the compensation. However, the Workmen's Compensation Commissioner has negatived the contention of the Insurance Company by holding that the Insurance
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