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2001 Supreme(Pat) 346

PATNA HIGH COURT
S.N.Pathak, J.
Oriental Insurance Company Ltd.
Versus
Md.Nasiruddin
M.A. No. 85 of 1994 ;
Decided On : APRIL 18, 2001

Headnote:

Interim Compensation - Motor Vehicle Claim - The court held that the insurance company was not liable to pay any compensation as the tractor involved in the accident was being used to carry passengers for hire, for which it was not insured or registered. The owner of the tractor was held liable to pay compensation to the claimants.

Fact of the Case:

The appellant, Oriental Insurance Company, appealed against the order of the Claims Tribunal, Aurangabad, which allowed interim compensation to the claimants (respondents 1 and 2) in a motor vehicle claim case.

Finding of the Court:

The court found that the concerned tractor was being used to carry passengers for hire, for which it was not insured or registered. The owner of the tractor was held liable to pay compensation to the claimants, and the impugned order was set aside.

Issues: The issue revolved around the liability of the insurance company to pay compensation for the accident involving the tractor, which was being used to carry passengers for hire.

Ratio Decidendi: The court held that the insurance company was not liable to pay compensation as the tractor was being used for a purpose for which it was not insured or registered, and therefore, the owner of the tractor was held liable to pay compensation.

Final Decision: The misc. appeal was allowed, and the impugned order was set aside. Respondent no. 3 (owner of the tractor) was directed to pay compensation amount of Rs. 25,000 to the claimants (respondents 1 and 2).

Judgment

S.N.Pathak, J.

1. This misc. appeal is directed against the order dated 8.12.93 passed by the Claims Tribunal, Aurangabad in Motor Vehicle Claim case no. 18/92. Appellant before this court is Oriental Insurance Company.

2. Appellants submission is that interim compensation of Rs. 25,000/- was allowed to the claimants respondents 1 and 2. However, the claimants were not entitled to receive anv compensation, much less interim compensation because Insurance company was not liable in so far concerned tractor was being used for ferrying passengers for which it was not ensured or registered. The concerned tractor was registered and ensured for carrying goods as also for agricultural purpose. So when the deceased died while travelling on the concerned tractor perhaps, tractor was being used to carry the passengers for hire. So insurance company was not laible to pay any compensation.

3. Respondent no. 3, owner of the concerned tractor appeared and contested this misc. appeal. The contention of respondent no. 3 is that the concerned tractor was being used for carrying goods and not as a passenger vehicle. However, the respondents lawyer failed to point out from the rejoinder filed in the lower court whether this ground that the concerned tractor was being used for carrying the goods was taken. In such a situation, it is difficult to come to a finding that the concerned tractor when it caused accident resulting into the death of the deceased was being used as vehicle for carrying goods or as vehicle for carrying the passengers. So in the circumstances of the case, it was owner of the tractor concerned who was liable to pay compensation by way of interim relief.

4. In the result, this misc. appeal is allowed and the impugned order is set aside. Respondent no. 3 is directed to pay compensation amount of Rs. 25,000/- to the claimants who are respondent 1 and 2 of this appeal. If owner is entitled to any indemnity from the Insurance company, he is free to stake his claim and take indemnity amount as provided under the law.

5. The amount which Insurance Company deposited before this Court may be withdrawn by it as per procedure.

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