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PATNA HIGH COURT
B.P.Jha and S.K.Choudhuri JJ.
Tara Pada Roy
Versus
Dwijendra Nath Sen
Appeal From Original Order No. 198 of 1974 ; 203 of 1974 ; 204 of 1974 ;
Decided On : NOVEMBER 15, 1984
MOTOR VEHICLES ACT - SECTION 95(2) - INSURANCE - LIABILITY OF INSURANCE COMPANY - INTERPRETATION OF ANY ONE ACCIDENT - LIABILITY EXTENDS TO EACH PASSENGER AND NOT TO THE INSURER.
Fact of the Case:
A bus met with an accident resulting in injuries and deaths of passengers. Claim cases were filed against the owner of the bus and the insurance company. The Motor Accident Claims Tribunal held that the insurance company's liability was limited to Rs. 20,000/- as the accident occurred before the amendment to the Motor Vehicles Act, which increased the liability to Rs. 75,000/-. The owner of the bus appealed, arguing that the amended Act should apply and the insurance company should be liable for the entire amount awarded to the claimants.
Finding of the Court:
The court held that the liability of the insurance company under the amended Act would be up to Rs. 75,000/-. However, the court was unable to grant complete relief to the owner of the bus due to a conflicting decision by a Division Bench of the same court in a related case. The court followed the Supreme Court's interpretation of Section 95(2) of the Motor Vehicles Act, which held that the expression 'any one accident' means an accident to any one passenger and not from the point of view of the insurer.
Issues: 1. Whether the amended Motor Vehicles Act, which increased the liability of insurance companies to Rs. 75,000/-, applies to accidents that occurred before the amendment. 2. Whether the liability of the insurance company extends to each passenger or is limited to the insurer.
Ratio Decidendi: 1. The liability of the insurance company is determined by the law in force on the date of the accident. 2. The expression 'any one accident' in Section 95(2) of the Motor Vehicles Act means an accident to any one passenger and not from the point of view of the insurer. Therefore, the insurance company's liability extends to each passenger and not to the insurer.
Final Decision: The court allowed six out of seven appeals filed by the owner of the bus and directed the insurance company to pay the amounts awarded to the claimants. However, one appeal was dismissed due to the binding effect of a conflicting decision by a Division Bench of the same court.
S.K.CHOUDHURI, J.
1. - These appeals have been heard together as they involve common question of law and are being disposed of by this judgment. All these appeals have been preferred by the owner of the vehicle against the judgment and award dated 21st of May, 1974 passed by the District Judge (Motor Accident Claims Tribunal), Dhanbad. By this judgment several claim cases, which were registered as title suits, were disposed of.
2. On 26th Sept. 1970 the passenger bus (public vehicle) named Sri Durga Bus Service bearing registration No. WOW 91 was going from Ranchi to Jharia with passengers. Unfortunately this bus met with an accident at a place known as Chas near village Chautand, Police-station Chas on the same day at about 4.30 p.m. Several persons were injured and some of the passengers also died in that accident. This accident gave rise to different claim cases. The bus was admittedly insured at the relevant time with the Insurance Company known as Oriental Fire and General Insurance Co. Ltd.. The seven appeals with which this Court is concerned arise out of the claim petitions, which were registered as title suits and for convenience they are being mentioned in the following chart
Appeal No. Suit No. Claimant Compensation
allowed
M. A. 198/74 T. S. 47/1970 Dwijendra Nath Sen Rs. 5,000/-
M. A. 201/74 T. S. 48/1970 Smt. Sibani Rani Dey Rs. 2,000/-
M. A. 200/74 T. S. 49/1970 Minor Subodh Kumar
Sen and others Rs. 5,000/-
M. A. 204/74 T. S. 7/1971 Khalid Latif Rs. 4,300/-
M. A. 203/74 T. S. 8/1971 Khalid Latif Rs. 20,000/-
M. A. 202/74 T. S. 9/1971 Khalid Latif Rs. 2,000/-
M. A. 199/74 T. S. 10/1971 Khalid Latif
and another Rs. 4,300/-
In the operative part of the judgment the Claims Tribunal has held that under the new Act, the liability of the Insurance Company was up to Rs. 75,000/-, but as the insurance policy was issued before the new Act came into force, the liability of the Insurance Company will be only up to Rs. 20,000/-. Accordingly, the Claims Tribunal held that the concerned Insurance Company is liable, only up to Rs. 20,000/-, but as the total amount awarded in different claim cases to different persons comes to Rs. 42,600/-, the balance liability beyond Rs. 20,000.00 would be of the owner Tara Pada Roy. It further ordered that the amount of compensation awarded in title suit No. 8 of 1971 being Rs. 20,000/-, the said sum should be paid by the Insurance Company to the claimant of that case and the remaining amount of Rs. 22,600.00 would be satisfied by the owner of the bus, namely, Tara Pada Roy.
3 The claimant in title suit No. 47 of 1970 was himself injured in the accident and the amount of claim of compensation was Rs. 10,000/-. The claimant in title suit No. 48 of 1970 was also an injured lady who is Smt. Sibani Rani Dey wife of one Shristi Dhar Dey, who claimed Rs. 5,000.00 as compensation. In title suit No. 49 of 1970 one Smt. Mukta Rani Sen wife of Dwijendra Nath Sen died and the claimants were minor son and daughter of the deceased along with her husband. The claim made in that case was for a sum of Rs. 20,000/. In title suit No. 7 of 1971, the claimants were the father and a brother of the deceased Munna. The amount of compensation claimed was Rs. 40,000/-. In title suit No. 8 of 1971 one Hazra Khatoon wife of Khalid Latif died. Claimant No. 1 Khalid Latif was the husband and claimant No. 2 Akhtar Hussain was the minor son of the deceased. The amount of compensation claimed was Rs. 75,000/-. In title suit No. 9 of 1971, the claimant Khalid Latif was the injured person. He claimed Rs. 5.000.00 as compensation. In title suit No. 10 of 1971, the claimants were the heirs of one Shabnam Parvin daughter of Khalid Latif. Claimant No. 1 was Khalid Latif and claimant No. 2 Akhtar Hussain was minor son of Khalid Latif and the amount of compensation claimed was Rs. 40,000/-. I have already mentioned above in the chart the amount of compensation allowed in different title
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