IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.K. SASIDHARAN, R. SUBRAMANIAN, JJ.
Bharati Axa General Insurance Co. Ltd. - Appellant
Versus
Aandi - Respondent
Civil Miscellaneous Appeal No. 1529, 1530, 1531, 1532, 1533 of 2015, Miscellaneous Petition No. 1 of 2015
Decided On : 24-10-2018
Constitution of India, 1950 - Article 142 - Motor Vehicles Act, 1988 - Sections 66, 147 and 149 - Motor Vehicles Act, 1939 - Section 95 – Accident – Death - Pay Compensation - A group of persons had engaged an eicher van bearing registration belonging to 1st respondent to go to attend marriage - After marriage while they were returning in same vehicle to driver of vehicle drove same in a rash and negligent manner resulting in vehicle toppling in middle of road - Due to said accident some of persons travelling in said Eicher van died and some of them suffered grievous injuries which led to filing of claim petitions which are in number - Claimants sought for compensation on ground that driver of Eicher van was negligent - All claim petitions were resisted by Insurance Company contending that eicher lorry bearing registration being a goods vehicle did not have permit to carry passengers - All persons viz deceased as well as injured claimants were unauthorized passengers in goods vehicle and hence Insurance Company cannot be made liable to pay compensation - It was also contended that it is case of no insurance and therefore direction to pay with liberty to recover from insured cannot also be granted - Held, We are therefore of considered opinion that judgment of two Judge bench and another referred to cannot be taken as a precedent to conclude that Insurance Company would be liable to pay compensation even in respect of an unauthorized passenger in a goods vehicle in light of categorical pronouncement of larger bench of honble supreme court in new india assurance company vs others and national insurance company ltd vs others referred to supra - We therefore conclude that Tribunal in case on hand was not right in directing Insurance Company to pay compensation and giving it liberty to recover same from owner - No doubt true that in many cases claimants may not be able to realize award amount from owners of vehicles involved in accident - But said factual situation alone cannot impel us to do something against provisions of statute and decisions of larger benches of Honble Supreme Court of India - Appeals will stand allowed.
R. SUBRAMANIAN, J.
1. The challenge in all these appeals is to the award of the Motor Accident Claims Tribunal, (Special District Judge), Dharmapuri made in MCOP.Nos.89 to 106 of 2014, dated 23.09.2014, in and by which, the Tribunal, while granting compensation to the victims of a road accident that occurred on 01.09.2011 directed the Insurance Company to pay the compensation with liberty to recover the same from the owner of the vehicle.
The case of the claimants before the Tribunal is as follows:-
2. On 01.09.2011, a group of persons had engaged an Eicher van (goods vehicle) bearing registration No.TN-29-AW-4232 belonging to the 1st respondent, to go to Soolakurichi from Kotapatty to attend the marriage of one Govindan with Bagyalakshmi. After the marriage, while they were returning in the same vehicle to Kotapatty, the driver of the vehicle drove the same in a rash and negligent manner, resulting in the vehicle toppling in the middle of the road. Due to the said accident, some of the persons travelling in the said Eicher van died and some of them suffered grievous injuries, which led to the filing of the above claim petitions which are 18 in number. The claimants sought for compensation on the ground that the driver of the Eicher van was negligent.
3. All the claim petitions were resisted by the Insurance Company contending that the Eicher lorry bearing registration No.TN-29-AW-4232 being a goods vehicle did not have permit to carry passengers. All the persons viz., the deceased as well as the injured claimants were unauthorized passengers in the goods vehicle and hence, the Insurance Company cannot be made liable to pay the compensation. It was also contended that it is the case of no insurance and therefore, the direction to pay with liberty to recover from the insured cannot also be granted.
4. The Tribunal which heard the Original Petitions quantified the compensation payable in each of the Original Petitions depending upon the loss of earning capacity in the injury cases and the loss of dependency suffered in fatal case and awarded various amounts as compensation. The Tribunal also directed the Insurance Company to pay the compensation and gave it liberty to recover the same by filing execution petition against the owner of the vehicle viz., 1st respondent in the Original Petitions. Aggrieved the Insurance Company is on appeal.
5. We have heard Mr. S. Arunkumar, learned counsel appearing for the Insurance Company.
6. Mr. S. Arunkumar would submit that he is not challenging the quantum of compensation. At the same time, the learned counsel would vehemently contend that the direction to pay and recover issued by the Tribunal is against the judgment of the Hon'ble Supreme Court in New India Assurance Company Ltd., Vs. Asha Rani and Others, (2003) ACJ 1 (SC), wherein, the Hon'ble Supreme Court had while disagreeing with the view expressed by the Hon'ble Supreme Court in New India Assurance Company Vs. Shri Satpal Singh and Others,2000 ACJ 2 (SC) had referred the matter to a larger bench.
7. He would also invite our attention to the subsequent judgments of the Hon'ble Supreme Court in National Insurance Company Ltd., Vs. Baljit Kaur and Others, (2004) 2 SCC 1 to contend that the Insurance Company cannot be made liable to pay the compensation for gratuitous passengers who were neither contemplated at the time when the contract of insurance was entered into nor any premium was paid to the extent to extend the insurance to such category of people.
8. The Hon'ble Supreme Court also pointed out that the Tribunal was not right in relying upon the judgment in New India Assurance Company Vs. Shri Satpal Singh and Others,2000 ACJ 2 (SC) which was over ruled in New India Assurance Company Ltd., Vs. Asha Rani and Others, (2003) 2 SCC 223.
9. Mr. S. Arunkumar would also invite our attention to other judgments of the Hon'ble Supreme Court as well as the larger bench judgment of this Court in United India Insurance company Vs. Nagammal and
Mangla Ram Vs. Oriental Insurance Co. Ltd.
Manuara Khatun and Others Vs. Rajesh Kumar Singh and Others
National Insurance Co. Ltd. Vs. Swarn Singh and Others.
National Insurance Company Ltd., Vs. Baljit Kaur and Others
National Insurance Company Ltd., Vs. Saju P. Paul
National Insurance Company Ltd., Vs. Swaran Singh and Others
New India Assurance Company Ltd., Vs. Asha Rani and Others
Oriental Insurance Co. Ltd Vs. Brij Mohan & Ors.
Oriental Insurance Company Vs. Nanjappan and Others
Rani and Others. Vs. National Insurance Co. Ltd. and Others.
SupremeToday
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.