IN THE HIGH COURT OF JUDICATURE AT BOMBAY AURANGABAD BENCH
R. G. Avachat, J.
New India Assurance Company Limited - Appellant
Versus
Yeshubai Bhimsing Gavit & Ors. - Respondents
First Appeal No.2344 of 2019 With Civil Application No.8750 of 2019
Decided On : 18-04-2022
Insurance Company - Motor Accident Claim - [Motor Vehicles Act, 1988, Section 147] - The court discussed the liability of the insurance company to pay compensation in cases where the deceased was a passenger in a goods carriage truck covered under an 'act only policy'. The court referred to various judgments of the Supreme Court and High Courts, highlighting the principle of 'pay and recover' and the exercise of plenary powers under article 142 of the Constitution of India. The court emphasized that the insurance company cannot be compelled to pay compensation if it has no liability, but also noted that in cases involving small amounts and specific circumstances, the principle of 'pay and recover' should be invoked.
Fact of the Case:
The appeal concerned a motor accident claim petition filed by the widow and children of a deceased who was a passenger in a goods carriage truck covered under an 'act only policy'. The Tribunal awarded compensation, directing the appellant Insurance Company to pay first and then recover the amount from the owner of the truck.
Finding of the Court:
The court found that the deceased was a passenger in a goods carriage truck and the insurance cover was in the nature of 'act only Policy', thus the insurance company did not have liability to pay the compensation. However, considering the small amount involved and the circumstances, the court upheld the impugned judgment and award, dismissing the appeal.
Issues: The main issue was the liability of the insurance company to pay compensation for the deceased who was a passenger in a goods carriage truck covered under an 'act only policy'.
Ratio Decidendi: The court emphasized the principle of 'pay and recover' in specific circumstances and the exercise of plenary powers under article 142 of the Constitution of India. It also noted that the insurance company cannot be compelled to pay compensation if it has no liability.
Final Decision: The appeal was dismissed, and the amount in deposit was ordered to be paid to the respondents/claimants with interest accrued thereon immediately.
JUDGMENT
R. G. avachat, J. - This is an Insurance Company's appeal, taking exception to a judgment and award dated 12/2/2019, passed by Motor accident Claims Tribunal (Tribunal), Nandurbar in Motor accident Claim Petition (MaCP) No.206/2014. The challenge herein is mainly to the direction to the appellant Insurance Company to pay respondents/ claimants the amount of compensation granted under the impugned award and then recover the same from the owner of the vehicle involved in the accident (respondent No.4).
2. Facts giving rise to the present appeal are as follows :-
a goods carriage truck bearing Registration No.GJ-16/V-3312 met with the accident at 10.30 p.m. on 24/2/2014. Deceased Bhimsing was travelling in the ill-fated truck. The accident took place since the truck hit a roadside stone, whereby the deceased sitting on the back side plank of the truck fell out and died of the injuries suffered thereby. His widow and two children (respondents No.1 to 3), therefore, preferred the petition for compensation. The Tribunal awarded compensation amounting to Rs.2,59,000/- with interest thereon. Since it was a goods carriage and risk of passengers travelling therein had not been covered under the policy of insurance, the Tribunal was pleased to direct the appellant Insurance Company to pay first and then recover the amount of compensation from the respondent No.4, owner of the truck.
3. Heard. The learned counsel for the appellant Insurance Company would submit that, the claimants (respondents No.1 to 3) had relied on First Information Report and the related papers of the accident. These documents unequivocally make out a case of the deceased having been travelling as paid passenger in a goods carriage. The policy of insurance granted by the appellant Insurance Company was in the nature of 'act only Policy'. The deceased was neither an employee of the owner of the vehicle nor was he owner of the goods, carried in the truck, or authorised representative of such owner. as such, the appellant Insurance Company did not have liability to pay any compensation. The judgments of the Supreme Court relied on by the Tribunal for directing the appellant Insurance Company to pay the amount of compensation first and then recover were passed in exercise of powers under article 142 of the Constitution of India. The Tribunal did not have jurisdiction to pass such an order. The learned counsel has relied on a number of authorities and ultimately urged for setting aside the impugned award.
4. The learned counsel for the respondents No.1 to 3 claimants would, on the other hand, submit that, there are very many judgments of the apex Court and the High Courts as well directing Insurance Company to pay compensation in such cases first and then recover the same from the vehicle owners. The learned counsel would submit that, the deceased was a very poor person. He is survived by his widow and two children. The amount of compensation is not more than Rs.2,60,000/-. He, therefore, urged for dismissal of the appeal in the given facts and circumstances of the case.
5. Considered the submissions advanced. Perused the impugned judgment and award. Gone through the evidence relied on. Perused the authorities relied on.
admittedly, the deceased was travelling in a goods carriage truck No.GJ-16/V-3312. There is nothing in the evidence to suggest that he was carrying with him goods of his own or that of his employer, if any, nor was he an employee of the owner of the truck. In short, the deceased was travelling either paid or gratuitous passenger in a goods carriage. The insurance cover granted by the appellant Insurance Company was in the nature of 'act only Policy'. as such, the risk of any person other than the driver of the truck travelling therein had not been covered. Necessarily, the appellant Insurance Company did not have either statutory or contractual liability to pay the amount of compensation awarded by the Tribunal.
6. Both the learned counsel have relied on
National Insurance Co. Ltd. vs. Parvathnni & anr.
National Insurance Co. Ltd. vs. Swarna Singh & ors. (2004) 3 SCC 297
National Insurance Co. Ltd. vs. Yellamma & anr. (2008) 7 SCC 526
National Insurance Company Limited vs. Parvathneni & anr. (2009) 8 SCC 785
National Insurance Company Limited vs. Saju P. Paul & anr. (2013) 2 SCC 41
New India Assurance Co. Ltd. vs. Asha Rani & ors. (2003) 2 SCC 223
New India Insurance Co. vs. Darshan Devi (2008) 7 SCC 416
Oriental Insurance Co. vs. Brij Mohan (2007) 7 SCC 56
Rani & ors. vs. National Insurance Co. Ltd. & ors. (2018) 9 SCALE 310
Samundra Devi vs. Narendra Kaur (2008) 9 SCC 100
Shamanna vs. Divisional Manager
Shivraj vs. Rajendra (2018) AIR (SC) 4252
United India Insurance Co. Ltd. vs. Shashi Prabha Sharma & ors. (2015) 6 AllMR 59
Anu Bhanvara etc. vs. IFFCO Tokio General Insurance Company Limited & ors. (2019) AIR (SC) 3934
Mangla Ram vs. Oriental Insurance Co. Ltd. (2018) 5 SCC 656
Manuara Khatun & ors. vs. Rajesh Kumar Singh & ors. Etc. (2017) 4 SCC 796
Manuara Khatun and others vs. Rajesh Kumar Singh and others (2017) 4 SCC 796
National Insurance Co. Ltd. vs. Baljit Kaur & ors. (2004) 2 SCC 1
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