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1981 Supreme(P&H) 210

PUNJAB & HARYANA HIGH COURT
J.V.Gupta, J.
Natha Singh
Versus
Gurdial Singh
First Appeal First Order No. 85 of 1976,
Decided On : AUGUST 25, 1981

The insurance company is liable to satisfy the claim for compensation even though the legal representatives of the deceased owner of the truck were not brought on record, as the insurance company had taken over the defence of the claim petition in the name of the insured and had contested the claim on merits.

Headnote:

MOTOR VEHICLES ACT, 1939 - SECTION 96, 102 - INSURANCE COMPANY'S LIABILITY - INSURANCE COMPANY TAKING OVER DEFENCE OF CLAIM PETITION IN NAME OF INSURED - LEGAL REPRESENTATIVES OF INSURED NOT BROUGHT ON RECORD - EFFECT - INSURANCE COMPANY LIABLE TO SATISFY CLAIM FOR COMPENSATION.

Fact of the Case:

Natha Singh, the appellant, was injured in an accident involving a truck driven by Gurdial Singh. He filed a claim petition before the Motor Accidents Claims Tribunal, Ropar, seeking compensation from the driver, the owners of the truck, and the insurance company. The Tribunal found that the accident was due to the negligence of the driver and awarded compensation of Rs. 10,000/-. However, the claim petition was dismissed on the ground that the appellant failed to bring the legal representatives of the deceased owner of the truck on record.

Finding of the Court:

The High Court held that the insurance company was liable to satisfy the claim for compensation even though the legal representatives of the deceased owner of the truck were not brought on record. The Court relied on the provisions of Sections 96 and 102 of the Motor Vehicles Act, 1939, and the terms of the insurance policy, which allowed the insurance company to take over the defence of the claim petition in the name of the insured.

Issues: 1. Whether the insurance company is liable to satisfy the claim for compensation in the absence of the legal representatives of the deceased owner of the truck being brought on record? 2. What is the quantum of compensation to be awarded to the appellant?

Ratio Decidendi: 1. Section 96 of the Motor Vehicles Act, 1939, provides that the insurance company is liable to satisfy judgments against persons insured in respect of third party risks. Section 102 provides that the death of the insured does not bar the survival of any cause of action arising out of the event giving rise to the claim. 2. The insurance company had taken over the defence of the claim petition in the name of the insured and had contested the claim on merits. Therefore, the insurance company was liable to satisfy the claim for compensation even though the legal representatives of the deceased owner of the truck were not brought on record.

Final Decision: The High Court allowed the appeal, set aside the order of the Tribunal, and awarded compensation of Rs. 20,000/- to the appellant with interest at the rate of 6% per annum from the date of filing the appeal. In case the claim was not satisfied within three months, the appellant was entitled to further interest at the rate of 12% per annum from the date of the order till realization.

Judgment

1. Natha Singh, appellant, who was injured in an accident which had taken place on June 9, 1968, at 5.30 A.M., filed his claim petition on July 17, 1968, before the Motor Accidents Claims Tribunal, Ropar (hereinafter called the Tribunal), claiming compensation to the tune of Rupees 80,000/-, on the allegations that on June 9, 1968, at about 5.30 A.M. he was going in a cart to the fields when Gurdial Singh respondent No.1 driving truck no. PNU-2229 came from Dera Bassi side, at a high speed and struck with the cart with the result, Natha Singh, appellant, was injured and one ox died. It was alleged therein that the act of Gurdial Singh, respondent, was rash and negligent driving of the truck. In his claim application, the appellant arrayed Gurdial Singh, the driver of the truck, Amrit Lal Gupta and Darshan Singh, as the owners of the truck and the National Insurance Company, as the insurer of the truck. However, the claim petition qua Gurdial Singh, was dismissed on Oct. 20, 1971, for non-payment of the process fee. Amrit Lal Gupta, respondent, was served for Dec. 18, 1969, but he failed to attend the Court as he was confined to bed according to the report made on the summons. Subsequently, he died and Shri J.S. Chatha, the then Presiding Officer, of the Tribunal, declined to bring his legal representatives on the record by his detailed order dated April 12, 1972. Darshan Singh, the other alleged owner of the truck, was proceeded ex parte as he failed to appear in spite of service. Thus, the claim was contested by the National Insurance Company alone which filed its written statement dated August 17, 1971. In one of the additional pleas taken in the written statement, it was pleaded that the replying respondent (the insurance company) takes over the defence of the claim in the name of the insured to contest the case as they have reserved this right under the policy of insurance. On the pleadings of the parties, the learned Tribunal framed the following issues on Nov. 17, 1971 :

1. Was the accident due to any negligent act on the part of the driver of the vehicle involved ?

2. What should be the quantum of compensation due, if any, and from whom to whom ?

3. Whether the application is time-barred ?

4. Relief.

On issue No.3, it was found that the application was clearly within time. Issue No.1 was also found in favour of the claimant holding that the accident had resulted due to the rash and negligent act on the part of Gurdial Singh, the driver of the truck. On the question of quantum of compensation, the learned Tribunal found that a sum of Rs. 10,000/- would meet the ends of justice. In spite of this finding, the claim petition was dismissed on the ground that since the claimant failed to bring the legal representatives of the deceased Amrit Lal Gupta, the owner of the truck, on the record, and his application was dismissed vide order dated April 12, 1972 being inordinately delayed, no order under S.96 of the Motor Vehicles Act, 1939 (hereinafter called the Act), could be passed against the insurance company because the very insured had not appeared in the Court and his legal representatives were not brought on the record. However, as regards Darshan Singh, respondent, it was found that there was no documentary evidence on the record to show that the truck, in question, belonged to him. Feeling aggrieved against the same the claimant has come up in appeal to this Court.

2. The learned counsel for the appellant, contended that admittedly Amrit Lal Gupta, was arrayed as a respondent in the claim petition filed by him and he was also served therein. Subsequently, though the application for bringing his legal representatives on the record was made, yet the same was dismissed on April 12, 1972. According to the learned counsel, in view of the written statement filed on behalf of the insurance company and the plea taken in para 3 of the additional pleas, it was not necessary for him to implead the legal representatives of Am










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