2005 Supreme(MP) 513

2005(3) JLJ 385
(SUPREME COURT)
R.C. Lahoti, C.J.I. G.P. Mathur and A.K. Mathur, JJ.
National Insurance Co. Ltd. v. Prembai Patel and others
Civil Appeal No. 6476 of 1998 : against the order of
M.P. High Court, passed in Miscellaneous Appeal No. 478 of 1996;
Decided on 18.4.2005.

Headnote:Motor Vehicles Act, 1988--Ss.147(1), 149(1) and 171 Workmen‘s Compensation Act, 1923--S.3--driver of truck dying in accident--policy only ‘Act Policy‘--no extra premium paid--insurer is liable to pay only sum envisaged under WC Act.

       The truck, while carrying a heavy load of firewood, overturned on 9.11.1993, resulting in death of its driver Sunder Singh. Respondents No. 3 to 6, who are parents, widow and son of the deceased Sunder Singh, then filed a claim petition. [Para 2

       The Motor Accidents, Claims Tribunal, Bilaspur, after appreciating the evidence on record, held that the deceased Sunder Singh was himself responsible for the accident and accordingly dismissed the claim petition. Feeling aggrieved, the claimants preferred an appeal before the High Court under section 173 of the Act. The High Court held that it was fully established that the accident took place due to the fact that the arm bolt of the truck broke down and not on account of any negligence on the part of the driver of the truck. Taking into consideration the age of the deceased and the salary which he was drawing, an amount of Rs. 2,10,000/- was awarded as compensation. The claimants were also held entitled to interest on the aforesaid amount @ 12% per annum from the date of filing of the claim petition. It was further held that the insurance company was liable to satisfy the whole award and consequently a direction was issued to the appellant to pay the entire amount of compensation awarded to the claimants.

       The judgment of the High Court has been challenged by the appellant insurance company only on one ground, namely, that having regard to the insurance policy taken by the owner of the vehicle and provisions of sections 147 and 149 of the Act, its liability is restricted to that which is provided under The Workmen‘s Compensation Act, 1923 (hereinafter referred to as ‘the Workmen‘s Act‘) and it is not liable to satisfy the entire award made in favour of the claimants. [Paras 3 & 4

       Held: An employee of owner of the vehicle, like a driver or a conductor, may also come within the purview of the words ‘any person‘ occurring in sub-clause (i) [of S. 147(1) (b)]. However, the proviso (i) to clause (b) of sub-section (1) of section 147 says that a policy shall not be required to cover liability in respect of 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 Act if the employee is such as described in sub-clauses (a) or (b) or (c). The effect of this proviso is that if an insurance policy covers the liability under, the Workmen‘s Act in respect of death of or bodily injury to any such employee as is described in sub-clauses (a) or (b) or (c) of proviso (i) to section 147(1) (b), it will be a valid policy and would comply with the requirements of Chapter XI of the Act. Section 149 of the Act imposes a duty upon the insurer (insurance company) to satisfy judgments and awards against persons insured in respect of third party risks. The expression-‘such liability as is required to be covered by a policy under clause (b) of sub-section (1) of section 147 (being a liability covered by the terms of the policy)‘--occurring in sub-section (1) of section 149 is important. It clearly shows that any such liability which is mandatorily required to be covered by a policy under clause (b) of section 147(1), has to be satisfied by the insurance company. The effect of this provision is that an insurance policy which covers only the liability arising under the Workmen‘s Act in respect of death of or bodily injury to any such employee as described in sub-clauses (a) or (b) or (c) to proviso (i) to section 147(1) (b) of the Act, is perfectly valid and permissible under the Act. Therefore, where any such policy has been taken by the owner of the vehicle, the liability of the insurance company will be confined to that arising under the Workmen‘s Act. (2002) 2 SCC 278, (1995) 2 SCC 539 and (1938) 3 SCC 744 relied on. [Para 12

       The liability of the appellant insurance company to satisfy the award would be restricted to that arising under the Workmen‘s Act. The respondents No.1 and 2 (owners of the vehicle) would be liable to satisfy the remaining portion of the award. [Para 17

       eksVj ;ku vf/kfu;e] 1988& &/kkjk 147¼1½] 149¼1½ rFkk 171&deZdkj çfrdj vf/kfu;e] 1923&/kkjk 3&Vªd ds pkyd dh nq?kZVuk esa e`R;q&ikfylh dsoy vf/kfu;e ikfylh*&vfrfjDr çhfe;e lanÙk ugha&chekdrkZ dsoy deZdkj çfrdj vf/kfu;e ds v/khu ifjdfYir jkf‘k lanÙk djus ds fy, nk;hA

       tykÅ ydM+h dk Hkkjh cks> ys tkrs gq, Vªd 9-11-1993 dks myV x;k ftlds ifj.kkeLo:i mlds pkyd lqanjflag dh e`R;q gks xbZA çR;FkhZ Ø-3 ls 6 us tks e`r lqanjflag ds ekrk&firk] fo/kok vkSj iq= gSa] rc nkok vthZ Qkby dhA ¼iSjk 2½

       eksVj nq?kZVuk nkok vf/kdj.k] fcykliqj us vfHkys[kxr lk{; dk ewY;kadu djus ds i‘pkr~ vfHkfu/kkZfjr fd;k fd e`r lqanjflag Lo;a nq?kZVuk ds fy, ftEesnkj Fkk rFkk rnuqlkj nkok vthZ [kkfjt dj nhA O;fFkr gksdj nkosnkjksa us vf/kfu;e dh /kkjk 173 ds v/khu vihy çLrqr dhA mPp U;k;ky; us vfHkfu/kkZfjr fd;k fd ;g iw.kZr% LFkkfir gks x;k gS fd nq?kZVuk bl rF; ds dkj.k gqbZ fd Vªd dk vkeZ cksYV VwV x;k Fkk] Vªd ds pkyd dh mis{kk ds dkj.k ughaA e`rd dh vk;q rFkk mlds }kjk fy, tk jgs osru ij fopkj dj çfrdj ds :i esa #-2]10]000@& dh jde vf/kfu.khZr dh xbZA nkosnkj iwoksZDr jde ij nkok vthZ Qkby fd, tkus ds fnukad ls 12 izfr‘kr çfro"kZ dh nj ls C;kt ds Hkh gdnkj vfHkfu/kkZfjr fd, x,A ;g vkSj vfHkfu/kkZfjr fd;k x;k fd chek daiuh laiw.kZ vf/kfu.kZ; dh rqf"V ds fy, nk;h gS] ifj.kkeLo:i vihykFkhZ dks funs‘k tkjh fd;k x;k fd og nkosnkjkas dks vf/kfu.khZr çfrdj dh laiw.kZ jde lanÙk djsA

       mPp U;k;ky; dk fu.kZ; vihykFkhZ chek daiuh us dsoy ,d vk/kkj ij vkf{kIr fd;k gS] vFkkZr~ ;g fd ;ku ds Lokeh }kjk yh xbZ chek ikfylh rFkk vf/kfu;e dh /kkjk 147 vkSj 149 ds mica/kksa dks /;ku esa j[krs gq, mldk nkf;Ro mrus rd gh fuc±f/kr gS tks deZdkj çfrdj vf/kfu;e] 1923 ¼,rfLeu~i‘pkr~ ^deZdkj vf/kfu;e* ds :i esa fufnZ"V½ ds v/khu micaf/kr gS] rFkk og nkosnkjkas ds i{k esa fn;k x;k laiw.kZ vf/kfu.kZ; rq"V djus ds fy, nkoh ugha gSA ¼iSjk 3 ,oa 4½

       vfHkfu/kkZfjr % ;ku ds Lokeh dk deZdkjh] tSls pkyd ;k daMDVj Hkh ¿/kkjk 147¼1½ ¼[k½ dsÀ mi[kaM ¼1½ esa vkus okys ‘‘kCn ^fdlh O;fDr* dh ifjf/k esa vk ldrs gSaA rFkkfi] /kkjk 147 dh mi/kkjk ¼1½ ds [kaM ¼[k½ ds ijarqd ¼1½ esa dgk x;k gS fd dksbZ ikfylh ml ikfylh }kjk chekÑr fdlh O;fDr ds deZpkjh dh mlds fu;kstu ls vkSj mlds nkSjku gqbZ e`R;q ds laca/k esa vFkok ,sls deZpkjh dh mlds fu;kstu ls vkSj mlds nkSjku gqbZ ‘kkjhfjd {kfr ds laca/k esa ,sls nkf;Ro dks iwjk djus ds fy, visf{kr ugha gksxh] tks deZdkj çfrdj vf/kfu;e ds v/khu gksus okys nkf;Ro ls fHkUu gS] ;fn deZpkjh ,slk gS tks mi[kaM ¼d½ ;k ¼[k½ ;k ¼x½ esa of.kZr gSA bl ijarqd dk çHkko ;g gS fd ;fn chek ikfylh }kjk ,sls fdlh deZpkjh dh tks /kkjk 147¼1½¼[k½ ds ijarqd ¼1½ ds mi[kaM ¼d½ ;k ¼[k½ ;k ¼x½ esa of.kZr gS] e`R;q ;k ‘kkjhfjd {kfr ds laca/k esa deZdkj vf/kfu;e ds v/khu gksus okyk nkf;Ro vkPNkfnr djrh gS rc fof/kekU; ikfylh gksxh vkSj mlls vf/kfu;e ds v/;k; 11 dh vis{kkvksa dk vuqikyu gksxkA vf/kfu;e dh /kkjk 149 esa chekdrkZ ¼chek daiuh½ ij ij&OfDr tksf[keksa dh ckor chekÑr O;fDr;ksa ds fo#) gq, fu.kZ;ksa vkSj vf/kfu.kZ;ksa dh rqf"V djus dk drZO; vkjksfir fd;k x;k gSA /kkjk 149 dh mi/kkjk ¼1½ esa vkus okyh vfHkO;fDr&^/kkjk 147 dh mi/kkjk ¼1½ ds [kaM ¼[k½ ds v/khu ikfylh }kjk iwjk djus ds fy, visf{kr nkf;Ro ds laca/k esa ¼tks nkf;Ro ikfylh ds fuca/kuksa ds varxZr gS½**&egRoiw.kZ gSA blls Li"V nf‘kZr gS fd ,sls fdlh Hkh nkf;Ro dh rqf"V ftldk /kkjk 147¼1½ ds [kaM ¼[k½ ds v/khu ikfylh }kjk vkPNkfnr gksuk vkKkid :i ls visf{kr gS] chek daiuh }kjk dh tkuk gksrh gSA bl mica/k dk çHkko ;g gS fd ,slh chek ikfylh ftlds }kjk ,sls fdlh deZpkjh dh tks vf/kfu;e dh /kkjk 147¼1½ ¼[k½ ds ijarqd ¼1½ ds mi[kaM ¼d½ ;k ¼[k½ ;k ¼x½ esa of.kZr gS] e`R;q ;k ‘kkjhfjd {kfr ds laca/k esa dsoy deZdkj vf/kfu;e ds v/khu mn~Hkwr nkf;Ro vkPNkfnr gS] vf/kfu;e ds v/khu iw.kZr% fof/kekU; rFkk vuqKs; gSA vr%] tgk¡ ;ku ds Lokeh }kjk ,slh dksbZ ikfylh yh xbZ gS ogk¡ chek daiuh dk nkf;Ro deZdkj vf/kfu;e dh v/khu mn~Hkwr nkf;Ro rd lhfer gksxkA ¼2002½2 ,l lh lh 278] ¼1995½ 2 ,l lh lh 539 rFkk ¼1998½ 3 ,l lh lh 744 voyafcrA ¼iSjk 12½

       vihykFkhZ chek daiuh dk vf/kfu.kZ; dh rqf"V djus dk nkf;Ro deZdkj vf/kfu;e ds v/khu mn~Hkwr nkf;Ro rd fuc±f/kr gksxkA çR;FkhZ Ø-1 vkSj 2 ¼;ku ds Lokeh½ vf/kfu;e ds ‘ks"k va‘k dh rqf"V djus ds fy, nk;h gksaxsA ¼iSjk 17½