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2008(1) JLJ 134
(FULL BENCH)
A.K. Patnaik, C.J., S.S. Jha and A.M. Sapre, JJ.
Bhav Singh v. Smt. Savirani and others
Miscellaneous Appeal No.687 of 1999 (Jabalpur): on reference by Division Bench; decided on 11.10.2007.
Hariram was a labour working for the owner of the tractor-trolley bearing registration No. MP 15/T-1184 and while traveling in the tractor-trolley met with an accident and died. His legal heirs filed MACT Case No.29 of 1998 and by award dated 6.3.1999, the First Additional Motor Accidents Claims Tribunal, Sagar, awarded a sum of Rs.2,84,332/- with interest as stated therein against the owner of the vehicle but absolved the insurer of the tractor-trolley. [Para 1
Held: The insured who is a party to the insurance is not a third party for the purpose of Chapter XI of the Act, particularly section 147 thereof. Thus, any person other than the insurer and the insured who are parties to the insurance policy is a ‘third party‘. The insurer, however, would not be liable for any bodily injury or death of a third party in an accident unless the liability is fastened on the insurer under the provisions of section 147 of the Act or under the terms and conditions of the policy of insurance. Hence, the mere fact that a passenger is a third party would not fasten liability on the insurer unless such liability arises under section 147 of the Act or under the terms and conditions of the insurance policy.
An employee is a third party inasmuch as he is not a party to the insurance policy. But merely because an employee is a third party, the insurance company would not be liable to compensate in case such employee suffers bodily injury or dies in an accident in which the motor vehicle is involved unless section 147 of the Act fixes such liability on the insurer or unless the terms and conditions of the contract of insurance fixes liability on the insurer. Section 147(1)(b) of the Act provides that in order to comply with the requirements of Chapter XI of the Act, a policy of insurance must be a policy which insures the person or classes of persons specified in the policy to the extent specified in sub-section (2) against the liabilities mentioned in clauses (i) and (ii) there under. The proviso to sub-section (1) of section 147 of the Act, however, states that a policy shall not be required to cover liability other than the liability arising under the Workmen‘s Compensation Act, 1923 in respect of the death of, or bodily injury to any of the three categories of employees mentioned in sub-clauses (a), (b) and (c) of clause (i) of the proviso to sub-section (1) of section 147 of the Act. Hence, even if an employee is a passenger or a person traveling in a motor vehicle which is insured as per the requirements of sub-section (I) of section] 47 of the Act, the insurer will not be liable to cover any liability in respect of death or bodily injury of such employee unless such employee falls in one of the categories mentioned in sub-clauses (a), (b) and (c) of clause (i) of the proviso to sub-section (1) of section ]47 of the Act and further in cases where such employees fall under the categories mentioned in sub-clauses (a), (b) and (c) of clause (i) of the proviso to sub-section (1) of section 147 of the Act, the insurer is liable only for the liability under the Workmen‘s Compensation Act, 1923.2004(1) JLJ 110 (FE) and ILR (2007) MP 1145 (FB) relied on. 1977 ACJ 343 (SC) and 2005(3) JLJ 385 (SC) followed. 2004(4) MPHT 404 (DB) partly overruled. [Paras 5 & 8
(2) Motor Vehicles Act, 1988 -- Ss.147(1) and 147(5) -- policy of insurance may cover additional liability other than that enumerated under S.147 (1) -- insurer is also liable for the contractual liabilities if so undertaken by it. ILR (2007) MP 1145 (FB) relied on. [Para 10
¼1½ eksVj ;ku vf/kfu;e] 1988 && /kkjk 147¼1½] 145¼N½ rFkk 149¼1½ && chekdrkZ vkSj chfer ds vfrfjDr izR;sd ijO;fDr gS && rFkkfi] chekdrkZ izR;sd ijO;fDr dh {kfr ;k e`R;q ds fy, nk;h ugha gS tc rd fd /kkjk 147 ds v/khu nkf;Ro vf/kjksfir ugha fd;k x;k gksA gfjjke Jfed] jftLVªhdj.k Ø- ,e ih 15@Vh&1184 okys VSªDVj&Vªkyh ds Lokeh ds fy, dk;Z dj jgk Fkk rFkk VªSDVj&Vªkyh esa ;k=k djrs le; gqbZ nq?kZVuk esa mldh e`R;q gks xbZA mlds fof/kd mÙkjkf/kdkfj;ksa us ,e , lh Vh ekeyk Ø-29 lu~ 1998 Qkby fd;k vkSj vf/kfu.kZ; fnukad 6-3-1999 }kjk izFke vij eksVj nkok vf/kdj.k] lkxj us mlesa crk, x, C;kt lfgr :-2]84]332@& dh jde ;ku ds Lokeh ds fo:) vf/kfu.khZr dh vkSj VSªDVj&Vªkyh ds chekdrkZ dks nkf;Ro ls eqfDr ns nhA ¼iSjk 1 vfHkfu/kkZfjr % chfer] tks chek dk i{kdkj gS] vf/kfu;e ds v/;k; 11] fo‘ks"kr% mldh /kkjk 147 ds iz;kstu ds fy, ijO;fDr ugha gSA bl izdkj] chekdrkZ vkSj chfer tks chek ikfylh ds i{kdkj gSa] ds vfrfjDr dksbZ Hkh O;fDr ^^ijO;fDr** gSA rFkkfi] fdlh nq?kZVuk esa ijO;fDr dks gqbZ ‘kkjhfjd {kfr ;k e`R;q ds fy, chekdrkZ nk;h ugha gksxk tc rd fd vf/kfu;e dh /kkjk 147 ds mica/kksa ds v/khu ;k chek dh ikfylh ds fuca/kuksa vkSj ‘krksZa ds v/khu chekdrkZ ij nkf;Ro vf/kjksfir ugha gksA blfy,] ek= bl rF; ls fd dksbZ nkf;Ro vf/kfu;e dh /kkjk 147 ds v/khu vFkok chek ikfylh ds fuca/kuksa vkSj ‘krksZa ds v/khu mn~Hkwr ugha gksrkA deZpkjh ijO;fDr gS D;ksafd og chek ikfylh esa i{kdkj ugha gSA fdarq ek= blfy, fd deZpkjh ijO;fDr gS] chek daiuh ml fLFkfr esa tc ,sls deZpkjh dks ,slh nq?kZVuk esa ftlesa og eksVj ;ku varxZzLr gks] ‘kkjhfjd {kfr dkfjr gks vFkok mldh e`R;q gks tk,] rc rd izfrd`r djus dh nk;h ugha gksxh tc rd fd vf/kfu;e dh /kkjk 147 }kjk ,slk nkf;Ro chekdrkZ ij fu;r ugha gks ;k tc rd fd chek dh lafonk ds fuca/kuksa vkSj ‘krksZa }kjk chekdrkZ ij nkf;Ro fu;r ugha gksA vf/kfu;e dh /kkjk 147¼1½¼[k½ esa micaf/kr gS fd vf/kfu;e ds v/;k; 11 dh vis{kkvksa ds vuqikyu ds fy, chek dh ikfylh ,slh ikfylh gksuk pkfg, tks ikfylh esa fofufnZ"V O;fDr ;k O;fDr;ksa ds oxksZa dk mi/kkjk ¼2½ ds [kaM ¼i½ rFkk ¼ii½ esa mfYyf[kr nkf;Roksa ds izfr rn/khu fofufnZ"V lhek rd chek djrh gSA rFkkfi] /kkjk 147 dh mi/kkjk ¼1½ ds ijarqd esa dgk x;k gS fd dksbZ ikfylh ,sls nkf;Ro dks iwjk djus ds fy, visf{kr ugha gksxh tks vf/kfu;e dh /kkjk 147 dh mi/kkjk ¼1½ ds ijarqd ds [kaM ¼i½ ds mi[kaM ¼d½] ¼[k½ vkSj ¼x½ esa mfYyf[kr deZpkfj;ksa ds rhu izoxksZa esa ls fdlh ,d dh e`R;q ;k mldh ‘kkjhfjd {kfr ds ckcr deZdkj izfrdj vf/kfu;e 1923 ds v/khu mn~Hkwr nkf;Ro ls fHkUu gSA vr% deZpkjh vf/kfu;e dh /kkjk 147 dh mi/kkjk ¼1½ dh vis{kkuqlkj chfer eksVj ;ku esa ;k=h gks ;k mlesa ;k=k djus okyk O;fDr gks rc Hkh chekdrkZ ,sls deZpkjh dh e`R;q ;k ‘kkjhfjd {kfr ds ckcr dksbZ Hkh nkf;Ro iwjk djus dks nk;h ugha gksxk tc rd fd ,slk deZpkjh vf/kfu;e dh /kkjk 147 dh mi/kkjk ¼1½ ds ijarqd ds [kaM ¼i½ mi[kaM ¼d½] ¼[k½ vkSj ¼x½ esa mfYyf[kr fdlh izoxZ esa ugha gksA blds vfrfjDr] ,sls ekeyksa esa tgk¡ ,sls deZpkjh vf/kfu;e dh /kkjk 147 dh mi/kkjk ¼1½ ds ijarqd ds [kaM ¼i½ ds mi[kaM ¼d½] ¼[k½ vkSj ¼x½ esa mfYyf[kr izoxksZa esa vkrs gSa] chekdrkZ dsoy deZdkj izfrdj vf/kfu;e] 1923 ds v/khu nkf;Ro ds fy, nk;h gSA 2004¼1½ ts ,y ts 110 ¼iw.kZ U;k;ihB½ rFkk vkb ,y vkj ¼2007½ e-iz- 1145 ¼iw.kZ U;k;ihB½ voyafcrA 1977 , lh ts 343 ¼,l lh½ rFkk 2005¼3½ ts ,y ts 385 ¼mPpre U;k-½ vuqlfjrA 2004¼4½ ,e ih ,p Vh 404 ¼[kaM U;k;ihB½ Hkkxr% myVk x;kA ¼iSjk 5 ,oa 8 ¼2½ eksVj ;ku vf/kfu;e] 1988 && /kkjk 147¼1½] 147¼5½ && chek dh ikfylh esa /kkjk 147¼1½ ds v/khu ifjxf.kr nkf;Ro ds vfrfjDr nkf;Ro vkPNkfnr gks ldrss gSa && mlds }kjk mÙkjnkf;Ro fy;k x;k gks rc chekdrkZ lafonkRed nkf;Roksa ds fy, Hkh nk;h gSA vkb ,y vkj ¼2007½ e-iz- 1145 ¼iw.kZ U;k;ihB½ voyafcrA ¼iSjk 10
Patnaik C.J -1. The relevant facts leading to this reference are that Hariram was a labour working for the owner of the tractor-trolley bearing registration No. MP 15/T-1184 and while travelling in the tractor-trolley met with an accident and died, His legal heirs filed MACT Case No.29 of 1998 and by award dated 6.3.1999, the First Additional Motor Accidents Claims Tribunal, Sagar, awarded a sum of Rs.2,84,332/- with interest as stated therein against the owner of the vehicle but absolved the insurer of the tractor-trolley, the New India Assurance Company Limited Aggrieved by the award of the Tribunal, the appellant, who is the owner of the tractor-trolley, has filed the present appeal.
2. When the appeal was heard by the Division Bench, a Full Bench decision of this Court in Jugal Kisore and another v. Ramlesh Devi and others [2004(1) JU 110=2003(4) MPU 546], was cited by learned counsel for the appellant before the Division Bench to contend that a policy of insurance satisfying the requirements of section 147 of the Motor Vehicles Act, 1988 (for short "the Act") would cover liability of the insurer to any passenger of the tractor-trolley who may be a "third party" within the meaning of the expression as used in section 145(g) of the Act. Learned counsel for the appellant also cited before the Division Bench a decision of a Division Bench of this Court in National Insurance Co. Ltd. v. Sarvanlal and others [2004(4) MPHT 404 (DB)], in which the Division Bench after citing paragraphs 17 and 18 of the judgment of the Full Bench of this Court in Jugal Kishore (supra), held that the insurer is liable to indemnify for the death of the deceased as a passenger was a third party within the meaning of section 145(g) of the Act. The Division Bench, in the present appeal, passed an order dated 16.2.2007 saying that the law laid down in case of Jugal Kishore (supra), specially in paragraphs 17 and 18 thereof and the law laid down in the case of Sarvanlal (supra), which states that the expression "third party" would cover a passenger, requires reconsideration by an appropriate larger Bench.
3. We have heard Mr. B. K. Rawat, learned counsel for the appellant, Ms. Ninnala Raikwar, learned counsel for respondents No.1 to 4, Mr. S.K. Rao, learned senior counsel for the respondent No.6 and Mr. Sanjay Agrawal, Advocate as Amicus Curiae.
4. Sub-section (1) of section 147 of the Act which states that in order to comply with the requirements of Chapter XI, the policy of insurance must cover the liabilities as indicated in sub-section (1), is quoted herein below:
"147. Requirements of policies and limits of liability, -- (1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which --
(a) is issued by a person who is an authorized insurer; or
(b) insurer the person or classes of persons specified in the policy to the extent specified in sub-section (2) --
(i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person [including owner of the goods or his authorised representative carried in the vehicle] or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place;
(ii) against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place:
Provided that a policy shall not be required -
(i) to cover liability in respect of the death, arising out of and in the course of his employment, of the employee of a person insured by the policy or in respect of bodily injury sustained by such an employee arising out of and in the course of his employment other than a liability arising under the Workmen's Compensation Act, 1923 (8 of 1923) in respect of the death of, or bodily injury to, any such employee -
(a) engaged in driving the vehicle, or
(b) if it is a public service vehicle engaged as conductor of the vehicle or in examining tickets on t
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