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2008 Supreme(Kar) 889

IN THE HIGH COURT OF KARNATAKA AT BANGALORE
Ram Mohan Reddy, J.
Salauddin Abdul Khader Maniyar —Appellant
Vs.
United India Insurane Company Ltd. through its Divisional Office now rep. by Regional Office and Afzal Khan S/o Bismilla Khan Dodamani —Respondent
AND
United India Insurane Company Ltd. through its Divisional Office now rep. by Regional Office rep. by its Assistant Manager —Appellant
Vs.
Salauddin Abdulkhadar Maniyar and Afzalkhan Bismillakhan Dodamani —Respondent
Miscellaneous First Appeal No. 11508 of 2005 and Miscellaneous First Appeal Crob. No. 191 of 2006
Decided on : 25-02-2008

Advocates:
Advocate appeared:
Mr. A.M. Venkatesh, Krishna H., S.R. Shinde, for the Appellant
Mr. S.R. Shinde, H.M. Dharigond, for the Respondent

The Act does not provide for carrying passengers in a goods carriage meant for carrying goods, and the owner of such a goods carriage will not be entitled to statutory indemnity against the claim by the injured - gratuitous passengers.

Headnote:

liability - Motor Vehicles Act - Section 110-D - Order 41 Rule 22 - ILR (1990) KAR 483, AIR 2007 SC 1334 - The court discussed the liability of the insurer for compensation to a gratuitous passenger travelling in a goods carriage, referencing the provisions of Order 41 Rule 22 and Section 110-D of the Motor Vehicles Act. The court also referred to ILR (1990) KAR 483 and AIR 2007 SC 1334 to support its decision. The judgment emphasized that the Act does not provide for carrying passengers in a goods carriage meant for carrying goods and that the owner of such a goods carriage will not be entitled to statutory indemnity against the claim by the injured - gratuitous passengers. The court concluded that the insurer would have no liability to pay compensation to a gratuitous passenger in a goods carriage.

Fact of the Case:

The appellant, insurer of the offending vehicle, challenged the liability to pay compensation to the claimant-injured, who was a gratuitous passenger travelling in a goods carriage. The appellant argued that the claimant-injured's status as a gratuitous passenger exempts the insurer from liability.

Finding of the Court:

The court found that the claimant-injured's status as a gratuitous passenger travelling in a goods carriage exempts the insurer from liability to pay compensation.

Issues: The issues revolved around the liability of the insurer for compensation to a gratuitous passenger travelling in a goods carriage and the admissibility of the claimant-injured's statements made during the investigation.

Ratio Decidendi: The court held that the Act does not provide for carrying passengers in a goods carriage meant for carrying goods and that the owner of such a goods carriage will not be entitled to statutory indemnity against the claim by the injured - gratuitous passengers. The court also emphasized the admissibility of the claimant-injured's statements made during the investigation as substantive evidence.

Final Decision: The appeal was allowed, and the impugned judgment and award in so far as it relates to fastening of liability on the appellant to pay the compensation was set aside. The claimant-injured was directed to recover the compensation from the insured, the owner of the goods carriage. The Cross Appeal was dismissed.

JUDGMENT

Ram Mohan Reddy, J.— Though this appeal and cross-objection are listed for admission, with the consent of the learned Counsel for the parties, they are finally heard and are disposed of by this common order.

2. The insurer of the offending vehicle, aggrieved by the fastening of the liability to pay the compensation by the judgment and award dated 30-07-2005 in M.V.C. No. 1385/2002 of the III Addl. Civil Judge (Sr.Dn) & Addl. MACT, Belgaum (for short 'MACT'), has preferred this appeal while the cross-objection is preferred by the claimant-injured, the 1st respondent for enhancement of compensation.

3. The challenge to the impugned judgment and award by the insurer of the offending motor vehicle is grounded on non-liability to pay the compensation as the claimant-injured is a gratuitous passenger travelling in a goods carriage, while the cross objection is over the quantum of compensation as inadequate. In that view of the matter, applying the law laid down by the Division Bench of this Court in the case of United India Insurance Co. Vs. Balasubramanyam, ILR (1990) KAR 483 holding that the provisions of Order 41 Rule 22 when read in conjunction with Section 110-D of the Motor Vehicles Act, ('Act' for short), the combined effect of which in an appeal presented by the insurer in which the only ground of challenge is with reference to the extent of liability of the Insurance company, the cross-objector cannot be permitted to contest the quantum of compensation or the findings recorded on any other issue, the cross-objection in the instant case is not maintainable and deserves to be rejected.

4. The grievance of the appellant as aired by its learned Counsel is that the claimant-injured having travelled in a goods carriage along with the driver, not as the owner of the goods, hut as a gratuitous passenger, the decision of the Apex Court in New India Assurance Co. Ltd. Vs. Vedwati and Others, AIR 2007 SC 1334, that no liability could be clamped on the insurer of the offending vehicle in the circumstances is applicable.

5. Learned Counsel highlights the fact that the claimant-injured in the claim statement, against Column No. 5, except for stating that he was a cootie, did not furnish the employment particulars nor state that he was employed by the owner of the vehicle and that the claimant-injured in his statement as recorded by the police authorities, while in the hospital, in the course of investigation into the crime, disclosed that he was travelling in the goods carriage as a gratuitous passenger, in addition to the statement of the complainant that the claimant-injured boarded the goods carriage, sat in the cleaner's seat as a gratuitous passenger. According to the Learned Counsel, these facts having not been considered by the MACT, has occasioned denial of justice.

6. Per contra, the learned Counsel for the respondent-claimant, seeks to sustain the finding of the MACT fastening liability on the appellant, as being well merited, and not calling for interference.

6. Having heard the learned Counsel for the parties, examined the impugned judgment and award, the pleadings, certified copies of the depositions and documents exhibited before the MACT and produced by the learned Counsel for the appellant, what emanates is the fact that in the claim statement filed by the claimant-injured, although he claimed to be a coolie by avocation, did not furnish the relevant material particulars of employment, much less employed under the insured. Before the MACT the appellant produced three documents marked as Exhibits R-1 to R-3 namely the statement of the claimant-injured, the complaint and a copy of the insurance policy, respectively. The statement of the claimant discloses that while in hospital, the police authorities in the process of investigation into the crime, recorded the claimant's statement wherein he categorically stated that he was travelling as a gratuitous passenger. So also, the written complaint Exhibit R-2, lodged by one Ma











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