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IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT NAGPUR
A. P. Bhangale, J.
National Insurance Co. Ltd. – Appellant
Versus
Rajeshwar & Ors. - Respondents
First Appeal No.788, 385, 733, 738, 745, 746, 753, 789, 840 & 845 of 2013
Decided On : 13-08-2015
Liability - Insurance Company - The court held that the primary liability of the Insurance Company is to pay compensation, and it can then seek recovery from the driver/owner of the vehicle if it feels it was not liable to compensate the claimant.
Fact of the Case:
The appellant Insurance Company appealed the judgment and award passed by the Motor Accident Claims Tribunal regarding the liability for compensation in a motor accident case.
Finding of the Court:
The court found that the Insurance Company, owner, and driver are jointly and severally responsible to pay compensation. It emphasized the primary liability of the Insurance Company to pay compensation and its liberty to recover the amount from the driver/owner if it deems it was not liable to compensate the claimant.
Issues: The issue revolved around the liability of the Insurance Company and the recovery of compensation from the driver/owner of the vehicle.
Ratio Decidendi: The primary liability of the Insurance Company to pay compensation and its right to seek recovery from the driver/owner if it believes it was not liable influenced the court's decision.
Final Decision: The appeals were disposed of, and claimants were entitled to withdraw the deposited amount of award by the Insurance Company. No order as to costs was made.
1. Feeling aggrieved by common judgment and award dated 10th January 2013 passed by the Motor Accident Claims Tribunal, Yavatmal in MAC Petition No. 288 of 2004 and other petitions arising out of one and the said accident, appellant Insurance Company has filed present appeal.
2. The question in these appeals is about the liability of the Insurance Company. The Tribunal has held that appellant Insurance Company as well as owner and driver are jointly and severally responsible to pay compensation. Legal position cannot be disputed that it is primary liability of the Insurance Company to pay compensation and it is then at liberty to approach the Tribunal for recovery of that amount from the driver/owner of the vehicle if it feels that it was not liable to compensate the claimant.
3. In view of what is observed in paragraph 2 above, all these appeals are disposed of. In the cases where the appellant Insurance Company has deposited the amount of award, claimants are entitled to withdraw the same. No order as to costs.
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