Owner of the vehicle entitled to recover the award amount deposited by him from the Bank

A.S.Venkatachalamoorthy, J.: One Sundaram, a permanent resident at Periyathatchur Agaram Village, Dindivanam Taluk was returning from Kollidam Thaikkal with his hand cart to his house in Kalaignar Colony at about 20.00 hours on 16.1.1990, when a tractor bearing Registration No.TCO-6043 attached with a trailer bearing Registration No.TCO-6044, belonging to the 2nd respondent in M.C.O.P. No.206 of 1990 (on the file of the Motor Accident Claims Tribunal, Nagapattinam), driven by one Jagannathan (first respondent in the MCOP) in a rash and negligent manner, came and dashed against him and the cart. In the said incident, the deceased Sundaram sustained serious injuries and subsequently died in Poosai Hospital at Kollidam. Respondents 1 to 4 herein, as petitioners filed M.C.O.P. No.206 of 1990 against the appellant and Respondents 5 to 7 herein, under Section 166 of the Motor Vehicles Act, 1988, claiming compensation at Rs.1,25,000. The first respondent is the wife of the deceased Sundaram while Respondents 2 and 3 are the minor children and the 4th respondent is the sister of th said Sundaram.

2. The appellant herein viz., the owner of the said vehicle resisted the petition contending that the tractor was driven by the driver slowly and cautiously and it was the deceased, who suddenly crossed the road without noticing the tractor, which ultimately resulted in the accident. Yet another contention has been raised to the effect that he purchased the tractor and trailer under hire purchase scheme from the State Bank of India, Sirkali Branch, the 6th respondent in this appeal and who has agreed to insure the vehicle and renew the same from time to time till the entire loan is cleared and collect the premium from the appellant. In fact, the said Bank did so for the first three years, but however, omitted to renew the Insurance Policy probably due to oversight or negligence. Instead of renewing the policy on or before the expiry date, the Bank paid the premium only on 18.1.1990 that was on the 3rd day of the accident. As in law, the Bank alone is the owner of the tractor and trailer till the loan is repaid and cleared and as the appellant was not the owner on the relevant date, the appellant is not liable to pay any amount. Thirdly, it is contended that in any event, the claim made by the appellant is excessive.

3. The sixth respondent herein viz., State Bank of India, filed a counter statement, denying the claim, that they paid the insurance premium for the vehicle to the Insurance Company and therefore, they are liable to pay compensation to the claimants. It is further stated therein that the Insurance Premium is payable only by the owner of the vehicle and is being paid only by him. According to the Bank, the loan was advanced on an agreement for hypothecation of the vehicle and therefore, the petitioner has got a first charge over the vehicle for realisation of the loan advanced to the owner of the vehicle.

4. The 7th respondent herein viz., the Insurance Company claimed that since the accident was on 16.1.1990 and the insurance policy expired well before that, and the same was renewed only subsequently, that was on 18.1.1990, the Insurance Company is not in any way liable to pay any amount.

5. The Motor Accident Claims Tribunal, after due enquiry, came to the conclusion that the accident took place only due to the rash and negligent driving by its driver and fixed the compensation payable to the claimants at Rs.83,500 with interest at 12% per annum thereon. Thirdly, it held that the said amount has to be paid only by the owner of the vehicle viz., the appellant herein and completely absolved the Insurance company of the liability.

6. The owner of the vehicle viz., the appellant herein, being aggrieved by the said award, has filed the above appeal.

Respondents 1 to 4 viz., the claimants in the M.C.O.P., have filed Cross Objection No.57 of 1994, claiming compensation as claimed in the original petition.

7. We heard the elaborate submissions

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