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2022 Supreme(Guj) 1006

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Hemant M. Prachchhak, J.
Oriental Insurance Co.Ltd. – Appellant
Versus
Ranjanben Motisinh Kher & 5 Others – Respondents
R/First Appeal No. 1922 of 2007 With R/First Appeal No. 1923 of 2007 With R/First Appeal No. 1924 of 2007 With R/First Appeal No. 1925 of 2007 With R/First Appeal No. 1926 of 2007 With R/First Appeal No. 1927 of 2007 With R/First Appeal No. 1928 of 2007
Decided On : 10-10-2022

Advocates Appeared:
For the Appellant : Mr. Vibhuti Nanavati.

Headnote:

Insurance Company - Motor Accident Claims - Motor Vehicle Act 1988 - Section 147, Section 149 - The court discussed the liability of the insurance company to pay compensation to the claimants in case of an accident involving a goods vehicle and the status of the passengers as gratuitous passengers. The court referred to various judgments and observed that the insurance company would not be liable to pay compensation if the victim was a gratuitous passenger in the goods vehicle. The court modified the impugned judgment and award to exonerate the insurance company from its liability to satisfy the claim of the original claimants. The original claimants were allowed to recover the compensation from the owner of the offending vehicle involved in the accident. The court directed the refund of the amount deposited by the insurance company and clarified that the amount disbursed to the original claimants shall not be recovered from them by the insurance company.

Fact of the Case:

The appeal was filed by the Oriental Insurance Company Limited against the judgment and order of the Motor Accident Claims Tribunal, Bharuch. The claim petitions were filed by the heirs and legal representatives of the deceased persons and the injured persons arising from an accident involving a goods vehicle. The insurance company contended that the original claimants were sitting as gratuitous passengers in the vehicle and therefore, the insurance company cannot be held liable to pay the compensation to the claimants.

Finding of the Court:

The court found that the insurance company would not be liable to pay compensation if the victim was a gratuitous passenger in the goods vehicle. The impugned judgment and award were modified to exonerate the insurance company from its liability to satisfy the claim of the original claimants. The original claimants were allowed to recover the compensation from the owner of the offending vehicle involved in the accident.

Issues: The issues involved the liability of the insurance company to pay compensation in case of an accident involving a goods vehicle and the status of the passengers as gratuitous passengers.

Ratio Decidendi: The court held that the insurance company would not be liable to pay compensation if the victim was a gratuitous passenger in the goods vehicle. The court referred to various judgments and legal provisions to support its decision.

Final Decision: The appeal was partly allowed, and the insurance company was exonerated from the liability to indemnify and satisfy the impugned judgment and award. The original claimants were allowed to recover the compensation from the owner of the offending vehicle involved in the accident.

JUDGMENT :

1. The present group of appeal is filed by the Oriental Insurance Company Limited against the common judgment and order dated 29.9.2006 passed by learned Motor Accident Claims Tribunal, Bharuch in Motor Accident Claims Petition Nos. 508 to 210 of 1997 and 521 to 528 of 1997 arising from one accident. In the said group of petition the learned Tribunal has partly allowed the claim petitions of the original claimants and directed the insurance company to initially satisfy the claim of the original claimants and subsequently, recover from the owner of the offending vehicle involved in the accident.

2. Since present group of appeal arising from one accident and also from the common judgment passed by the learned Tribunal, all these appeals are decided by this common judgment.

3. The short facts giving rise to present appeals are as under:

3.1 On the day of the accident i.e. on 18.4.1997, the group of persons were travelling in the Tractor-Trolley being registration No. GJ-5-AA-9027 for attending a religious ceremony at Devmogra temple.

3.2 At that time, the Tractor-Trolley met with an accident and turned turtle. As a result of which three persons died and eight persons suffered injuries.

3.3 The claim petitions were filed by the heirs and legal representatives of the deceased persons and also all the injured persons before the learned Motor Accident Claims Tribunal, Bharuch being Motor Accident Claims Petition Nos. 508 to 210 of 1997 and 521 to 528 of 1997 whereby the learned Motor Accident Claims Tribunal has partly allowed the Motor Accident Claims Petition Nos. 508, 509, 510, 521, 522, 524, 525, 526 and 527 of 1997 by granting different amount of compensation and Motor Accident Claims Petition Nos. 523 and 527 of 1997 were rejected.

4. Mr. Vibhuti Nanavati, learned advocate for the appellant-insurance company has submitted that the original claimants were sitting as gratuitous passengers in the Tractor, as they all went to offer a prayer to the goddess and therefore, the insurance company cannot be held liable to pay the compensation to the claimants. It is further contended that it is against the principle enunciated vide judgment reported in the case of New India Assurance Co. Ltd. Vs. Asha Rani and others reported in (2003) 2 SCC 223 and also in First Appeal No. 913 of 2011 and First Appeal Nos. 4601 and 4602 of 2007. It is also contended by the learned advocate for the appellant-insurance company that all the claimants were sitting as unauthorized passengers of the trolley attached to the Tractor and it is the case of the claimants that they were sitting in the trolley for going to village Devmogra Mandi for offering prayer to the goddess, but, the learned Tribunal has not properly appreciated the said fact, while deciding the issue of neligency. He further submitted that present appeal may be allowed and insurance company may be exonerated.

5. I have heard Mr. Vibhuti Nanavati, learned advocate for the insurance company at length. Though rule is served upon the respondents, none remained present at the time of hearing to oppose the present appeal.

6. The present appeal was admitted vide order dated 13.4.2007 and interim relief was also granted on condition that the applicant deposits entire amount as ordered by the Tribunal. Thereafter, on 17.7.2007, when this Court disposed of the Civil Application, passed following order:-

    1.The present applications are for interim injunction pending the First Appeals which are admitted.

2. Heard Mr. Nair for the applicant. The respondents-claimants are served, except in the first matter, one of the claimants is not served, but nobody has appeared on their behalf.

3. This Court had granted ad interim injunction on 13.04.2007 and Mr. Nair states that as per his instructions, the condition is complied with and the amount is deposited. Hence, ad interim relief granted earlier is confirmed.

4. I have also heard the learned advocates appearing for the applicants on the aspects of with

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