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2022 Supreme(Guj) 1130

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Hemant M. Prachchhak, J.
United India Insurance Company limited, Godhra – Appellant
Versus
Bhemabhai Valabhai Palas & others – Respondents
R/First Appeal No. 2106 & 2107 of 2006
Decided On : 28-09-2022

Advocates:
Advocate Appeared:
For the Appellant : Mr Vibhuti Nanavati
For the Respondent: Mr M A Bukhari, Mr U M Shastri

The main legal point established in the judgment is that the liability of the insurance company for paying compensation is determined based on the interpretation of the definition of the vehicle involved and the terms of the insurance policy.

Headnote:

Insurance Company - Motor Accident Claims - Section 166 of the Act - Section 2(11) of the Motor Vehicles Act - The New India Assurance Company Limited Vs. Sureshkumar Shankralal Darji dated 15.06.2017 - United India Insurance Company Ltd Vs. Vajabhai Ratabhai Dabhi since deceased through Heirs and others dated 02.12.2021 - Kishan Gopal and other Vs. Lala and others - S. Iyapan Vs. United India Insurance Company Limited - Shivawwa and another Vs. Branch Manager, National Insurance Company Limited - Shamanna and another Vs. Divisional Manager, Oriental Insurance Company Limited - New India Assurance Co. Ltd. v. Heirs and Lrs of deceased Pravinsinh Ranubha Zala - The court discussed the interpretation of the definition of tractor under Section 2(11) of the Motor Vehicles Act and the liability of the insurance company under the commercial vehicles “B” Policy. The court referred to various precedents to support its decision to exonerate the appellant-Insurance Company from the liability of paying compensation to the claimants.

Fact of the Case:

The case involved a motor accident where the deceased sustained serious injuries and died. The claimants filed for compensation under Section 166 of the Act. The appellant, United India Insurance Company Limited, challenged the judgment and award passed by the Motor Accident Claims Tribunal, arguing that the insurance company cannot be held liable to pay compensation.

Finding of the Court:

The court found that the insurance company cannot be held liable to pay compensation based on the interpretation of the definition of tractor and the terms of the commercial vehicles “B” Policy. It referred to precedents to support its decision and exonerated the appellant-Insurance Company from the liability of paying compensation to the claimants.

Issues: Interpretation of the definition of tractor under Section 2(11) of the Motor Vehicles Act, liability of the insurance company under the commercial vehicles “B” Policy, and the admissibility of the claim for compensation.

Ratio Decidendi: The court held that the insurance company cannot be held liable to pay compensation based on the interpretation of the definition of tractor and the terms of the commercial vehicles “B” Policy. It also emphasized the position of the victims as unauthorized passengers and referred to precedents to support its decision.

Final Decision: The court allowed the appeal and modified the award to exonerate the appellant-Insurance Company from the liability of paying compensation to the claimants. It directed the recovery of the compensation amount from the owner of the vehicle.

JUDGMENT :

1. Feeling aggrieved and dissatisfied with the impugned judgment and award dated 31.12.2005 passed by the Motor Accident Claims Tribunal (Aux.), 2nd Fast Track Court, Dahod (hereinafter referred to as “the Tribunal”) in M.A.C.P. No.1523 of 2004 and 1524 of 2004 which came to be disposed of by common judgment and award, the appellant – United India Insurance Company Limited has preferred the present appeals.

2. The same set of facts was adduced before the Tribunal and the Tribunal has heard the claim petitions together and so also, the present appeals are heard together and disposed of by this common judgment and order.

3. Following facts emerge from the record of the appeals.

3.1 That the accident took place on 22.06.1996 at about 3.45 p.m. near Bordagota Dungar and Slop of Kabutari Dam. It is the case of the claimants that the deceased Ashutoshbhai and Manuben were travelling in Tractor bearing registration No.GJ-10- A-9888 which came to be driven by opponent no.1 in rash and negligent manner, due to which, tractor turned turtle and as a result of which the deceased sustained serious injuries and died on account of the same. An FIR came to be lodged at Exhibit 23 before the jurisdictional police and the present claim petitions were filed by the legal heirs of the original claimants under Section 166 of the Act before the Tribunal and claimed compensation of Rs.4,10,000/- and Rs.3,20,000/- respectively.

3.2 After considering the oral as well as documentary evidence led by the parties, the Tribunal has partly allowed the claim petitions by awarding Rs.2,54,000/- and Rs.1,54,000/- respectively as compensation in favour of the claimants.

4. The original claimants have relied upon the following oral as well as documentary evidence.

1.

F.I.R.

Exhibit 34

2.

Panchnama of scene of occurrence

Exhibit 35

3.

P. M. Report of Asutosh

Exhibit 36

4.

Policy of the vehicle

Exhibit 37

5.

P.M. Report of Manuben

Exhibit 38

5. Heard Mr.Vibhuti Nanavati, learned counsel appearing for the appellant – Insurance Company, Mr.U. M. Shastri, learned counsel appearing for respondent no.1 and Mr. M. A. Bukhari, learned counsel appearing for respondent no.4.

6. Mr.Nanavati, learned counsel appearing for appellant – Insurance Company has submitted the same facts which are narrated in the memo of appeals. He has submitted that the Tribunal has misinterpreted the definition of tractor which was involved in the accident and held the insurance company liable to satisfy the award. He has submitted that under the insurance policy and under the provisions of the Motor Vehicles Act, the insurance company cannot be held liable to pay compensation. He has submitted that the definition of tractor contained in Section 2(11) of the Motor Vehicles Act means ‘motor vehicle which is not itself constructed to carry any load (other than equipment used for the purpose of propulsion) but excludes a road roller’ and in the present case, the tractor involved bearing registration No.GJ-17-A-9888. He has submitted that without prejudice to the generality of the contentions and without admitting liability, whatsoever, the Tribunal ought to have deducted 1/3rd towards personal expenses of the deceased. On all these grounds, He has submitted that the present appeal deserves to allowed.

6.1 Mr.Nanavati, learned counsel appearing for the appellant – insurance company has relied upon the decisions in the case of (i) National Insurance Company Limited Vs. Amrutaben Rajusing Darbar (Zala) dated 17.02.2020 rendered in First Appeal No.3377 of 2017 and allied appeals by the Division Bench of this Court and (ii) The New India Assurance Company Limited Vs. Sureshkumar Shankralal Darji dated 15.06.2017 rendered in First Appeal No.4601 of 2007 and 4602 of 2007 by the Division Bench of this Court.

7. Mr.Shastri, learned counsel appearing for respondent

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