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1958 Supreme(P&H) 173

PUNJAB & HARYANA HIGH COURT
Bishan Narain and S.B.Capoor JJ.
Vanguard Fire And General Insurance Co.Ltd.
Versus
Sarla Devi
First Appeal No. 86 of 1955,
Decided On : NOVEMBER 27, 1958

Headnote:

FATAL ACCIDENTS ACT - INSURANCE - MOTOR VEHICLES ACT, 1939 - SECTION 96 - INSURANCE COMPANY - DEFENCE - GROUNDS - CONSTRUCTION - NATURAL JUSTICE - ARTICLE 14 OF THE CONSTITUTION - SCOPE - LIABILITY OF THE INSURANCE COMPANY - QUANTUM OF DAMAGES - ASSESSMENT - PRINCIPLES.

Fact of the Case:

The deceased, Atma Ram, died as a result of a running down accident. His widow and minor children filed a suit for compensation under the Fatal Accidents Act against the owner of the vehicle and the insurance company. The trial court decreed the claim in full against both the defendants. The insurance company appealed.

Finding of the Court:

The court held that the insurance company could not defend the suit on grounds other than those mentioned in Section 96(2) of the Motor Vehicles Act, 1939. The court also held that Section 96 of the Act did not violate the principles of natural justice or Article 14 of the Constitution. The court further held that the insurance company was liable to pay the full amount of compensation awarded to the plaintiffs, which was Rs. 50,000/-.

Issues: 1. Whether the insurance company could defend the suit on grounds other than those mentioned in Section 96(2) of the Motor Vehicles Act, 1939? 2. Whether Section 96 of the Act violated the principles of natural justice or Article 14 of the Constitution? 3. Whether the insurance company was liable to pay the full amount of compensation awarded to the plaintiffs?

Ratio Decidendi: 1. Section 96(2) of the Motor Vehicles Act, 1939, provides that an insurance company can only defend a suit for compensation under the Fatal Accidents Act on the grounds specified in the section. These grounds are: (a) that the policy was obtained by fraud or misrepresentation; (b) that the policy was void ab initio; (c) that the policy had been cancelled or suspended before the accident. 2. Section 96 of the Act does not violate the principles of natural justice or Article 14 of the Constitution. The section provides a fair and reasonable procedure for determining the liability of the insurance company in a suit for compensation under the Fatal Accidents Act. 3. The insurance company is liable to pay the full amount of compensation awarded to the plaintiffs, which was Rs. 50,000/-.

Final Decision: The appeal was dismissed.

Judgment

Bishan Narain, J.

1. Atma Ram died as a result of a running down accident and his widow and miner children (one son aged 4 and a daughter aged 5 1/2 years) filed a suit for the recovery of Rs. 50,000/- as compensation under the Fatal Accidents Act against Malik Chand the owner of the station wagon concerned and the Vanguard Fire and General Insurance Company, Limited with which the vehicle was insured. The trial court decreed the claim in full against both the defendants. Malik Chand did not file any appeal against this decree but the Insurance Company has filed this appeal.

2. The plaintiffs case is this. Atma Ram aged about 29 when going on a bicycle on 30th of August, 1950, some time between 10 and 11 P.M. was run down by a station wagon DLA: 1952 near the Ice Factory, Chowk Sabzi Mandi, Delhi. In this accident he received serious injuries. He was immediately removed to the Irwin Hospital where he died of the injuries on the night of 4th and 5th September, 1950. The accident was caused by the rash and negligent driving of Ishwar Dass, Driver of the vehicle which belonged to Malik Chand defendant in whose employment Ishwar Dass was.

The vehicle was insured with the appellant Company. It is stated in the plaint that the police had registered a case against Ishwar Dass under Section 279/338, Indian Penal Code but he was absconding in para 13 of the plaint it is prayed that a notice be issued to the Insurance Company to which it was entitled under the law as the decree passed in the suit is executable against it as if it was judgment-debtor.

3. Both the defendants contested the suit. They filed separate written statements. Both of them controverted the plaintiffs case substantially on the same grounds. Malik Chand admitted that Ishwar Dass was in his employment at the time of the accident but pleaded that he was not acting within the scope of his employment at that time and further that in any case the injury was not caused by negligent and rash driving of Ishwar Dass. In the alternative it was pleaded that the deceased was guilty of contributory negligence.

He also pleaded that the compensation claimed was highly exaggerated and that in any case the Insurance Company was liable to pay the same. The Insurance Company admitted the insurance but pleaded that at the time of the accident the vehicle was being used to carry goods and therefore the Company was absolved from liability. It denied negligent and rash driving by the driver and pleaded contributory negligence of the deceased. The amount of compensation claimed was pleaded to be excessive. On these pleadings the trial court framed the following issues : -- 1. Whether the plaintiffs are the only heirs of the deceased Shri Atma Ram?

2. Were the injuries caused to Shri Atma Ram caused by rash and negligent driving by Ishwar Dass? And if not, what is its effect?

3. Was the said Ishwar Dass at the time of injuries working during the course of his employment with defendant No. 1 or within the scope of his duty and whether the defendant No. 1 is liable for that reason ?

4. Was the death of the deceased a direct result of the injuries caused to him by the accident and if not, what is its effect?

5. To what damages, if any, are the plaintiffs entitled?

6. Was the deceased guilty of contributory negligence?

7. Was the vehicle D.L.A. 1952 insured with defendant No. 2 as a private 7 seater vehicle?

8. Whether the vehicle at the time of accident was being used to carry goods as a public Or private carrier? If so, whether defendant No. 2 is not liable for that reason?

9. Relief.

Issues Nos. 1 to 6 relate to the plaintiffs while issues Nos. 7 and 8 are relevant between the defen- dants inter se.

4 The trial court decided issues 1 to 6 in favour of the plaintiffs and issues Nos. 7 and a against the Insurance Company. Accordingly a decree for Rs. 50,000/- was passed against both the defendants with costs. As I have already stated the Company alone has filed this appeal. It has, howe




































































































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