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1984 Supreme(Ori) 22

High Court Of Orissa
G. B. Patnaik, J.
NATIONAL INSURANCE CO.LTD. - Appellant
Versus
LAXMI DEVI - Respondent
Misc. Appeal 72  Of  1980
Decided On : 01/24/1984

Advocates Appeared:
P.K.Misra, S.S.BASU

A person carried in a goods vehicle by reason of a contract of employment with the owner of the goods carried on the vehicle is entitled to the protection of compulsory insurance under Section 95(1)(b), Proviso (ii) of the Motor Vehicles Act.

Headnote:

MOTOR VEHICLES ACT - SECTION 95(1)(B), PROVISO (II) - WORKMEN'S COMPENSATION ACT - APPLICABILITY - THIRD PARTY INSURANCE - COMPENSATION - LIABILITY OF INSURANCE COMPANY.

Fact of the Case:

A truck carrying goods of a Munsif met with an accident due to rash and negligent driving, resulting in the death of the deceased, who was the Night-Watchman of the Bhadrak Civil Court and was accompanying the goods on behalf of the owner. The claimants, wife and children of the deceased, filed an application under Section 110-A of the Motor Vehicles Act claiming compensation.

Finding of the Court:

The Tribunal awarded compensation to the claimants, holding that the deceased was a third party who was travelling in the truck under a contract of employment with the owner of the goods being transported, and that the risk of the servants of the owner of the goods was covered under Section 95(1)(b), Proviso (ii) of the Motor Vehicles Act.

Issues: 1. Whether the deceased was a third party entitled to protection under Section 95(1)(b), Proviso (ii) of the Motor Vehicles Act? 2. Whether the claimants were entitled to compensation under the Motor Vehicles Act or limited to the maximum compensation under the Workmen's Compensation Act?

Ratio Decidendi: 1. The term "contract of employment" in Section 95(1)(b), Proviso (ii) of the Motor Vehicles Act cannot be restricted to a contract of employment with the owner of the insured vehicle alone, but must be given a wider meaning to cover persons on the vehicle in pursuance of a contract of employment with the owner of the goods carried on the vehicle. 2. The deceased, being sent by the owner of the goods to accompany his goods, was entitled to protection of his risk being covered under Section 95(1)(b), Proviso (ii) of the Motor Vehicles Act, and accordingly, the Insurance Company was liable to pay compensation. 3. The extent of liability of the owner of the truck as well as that of the Insurance Company is governed by the provisions of the Motor Vehicles Act and is not limited by Section 95(2)(a) or the provisions of the Workmen's Compensation Act.

Final Decision: The appeal filed by the Insurance Company was dismissed with costs.

G. B. PATNAIK, J.

( 1 ) THE Insurance Company is the appellant challenging the award of the Second Motor Accident Claims Tribunal.

( 2 ) ON 30-4-1973 at 12. 30 a. m. , a truek bearing registration number O. R. B. 1427 met with an accident at a place called Jhargadja on the Sambalpur-Cuttack road due to rash and negligent driving of the said truck. The truck was engaged in carrying goods of the Munsif, Bbadrak, who had been transferred to Angul. The deceased was the Night-Watchman of Bhadrak Civil Court and was going in the truck to keep watch over the goods. On account of the said accident, death having occurred, the claimants who are the wife and children of the deceased filed an application under Section 110-A of the Motor Vehicles Act claiming compensation to the tune of Rs. 50,000/ -.

( 3 ) THE Insurance Company filed objection before the Tribunal denying the rash ness and negligence of the driver of the truck and further it was stated that the deceased was a passenger on the truck and was being carried therein by the driver at his own risk and was not a third-party and therefore, his heirs, the claimants, were not entitled to receive any compensation from the Insurance Company.

( 4 ) ON the pleadings of the parties, the learned Tribunal on consideration of the evidence on record held that the truck in question was being driven rashly and negligently in consequence of which the accident occurred. On the evidence of P. W. 2. the clerk of the Munsifs Court, Bhadrak, be found that the deceased was earning Rupees 141/- per month and on the basis of his date of birth as 18-9-1947, found that he would have continued in service till his sixtieth year. Thereafter on calculation, the Tribunal found that the deceased would have earned Rs. 1,17,258/- before retirement had he not died in the accident. Half of the said amount having been deducted for personal maintenance expenses In accordance with the decision of the Supreme Court in the case of Smt. Manjushri Raha v. B. L. Gupta, AIR 1977 SC 1158, the Tribunal found the gross contribution towards maintenance of the claimants to be Rupees 58,629/- and thereafter deducting one-eighth of the said contribution on account of benefits received by the claimants on the death of the deceased and further one-sixth on account of uncertainties of life since compensation was being given on lump sum basis, fixed the net compensation payable at Rs. 41,529/ -. On the evidence of the concerned officer whose goods were being earned, the Tribunal found that the deceased was accompanying the goods on behalf of the owner of the goods and, therefore, the Insurance Company must be held responsible to make the necessary payments. On these findings, the Tribunal awarded Rs. 41,529/- with interest at six per cent per annum and further directed that if the amount be not paid within three months, then the rate of interest would be ten per cent.

( 5 ) MR. Basu appearing for the Insurance Company challenged the direction of the Tribunal regarding higher rate of interest if amount was not paid within three months on the ground that since an appeal was provided for and could be filed within three months, the Tribunal was not competent to enhance the rate of interest if the amount was not paid within three months. He argued only on first principle and was not in a position to cite any authority in support of the proposition. In my view, the Tribunal was well within his jurisdiction to direct that if the amount be not paid within three months, then the amount should carry a higher rate of interest, i. e. at 10 per cent. The provisions under the Motor Vehicles Act awarding compensation in favour of the legal representatives of a deceased or injured are ameliorative measures and the object of such legislation is to save the destitutes from vagaries of life, they having lost their sources of income must get something to fall back upon, Award of higher rate of interest if the compensation is not paid within three mo









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