SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(Online)(All) 18611

IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
Saral Srivastava, J
National Insurance Co Ltd – Appellant
Versus
Smt. Mangati And Others – Respondent
FIRST APPEAL FROM ORDER No. - 173 of 2005



Advocates:
For the Appellants/Petitioners: Kuldip Shanker Amist
For the Respondents: Amit Daga, Kuldeep Singh Tomar, Zianaz Zaidi

Negligence is not relevant for statutory liability in insurance claims under Motor Vehicles Act; issues not raised before the Tribunal cannot be introduced on appeal.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 166 and 167 - Appeal from Tribunal’s compensation award - Insurance company challenged the Tribunal’s award of Rs.3,47,000/- without addressing issues of negligence - The Tribunal found the driver was covered under the policy despite no premiums for coverage of driver’s risk - Insurance company’s claim for alternative compensation under the Workmen Compensation Act not permitted as it was not raised before the Tribunal. (Paras 2, 6, 7, 8)

(B) Negligence - No findings on negligence required as statutory liability of insurer covered the driver’s risk - Appellant’s argument regarding negligence dismissed for lack of merit. (Para 6)

Facts of the case:
The appellant-insurance company challenged the compensation awarded to the claimants for the death of the deceased driver in an accident involving the truck, highlighting negligence and compensation calculation issues.

Findings of Court:
The insurance company’s claim regarding compensation calculation was rejected for not being raised initially, and the driver’s licence issue was settled as valid.

Issues: Whether negligence is relevant under statutory liability for insurance and whether alternate compensation arguments can be introduced in appeal without prior tribunal discussion.

Ratio Decidendi: The court held that negligence is not relevant for statutory liability and issues must be raised at the tribunal level; claims not raised cannot be introduced on appeal.

Result: Appeal dismissed.

Table of Content
1. hearing of appeals (Para 1)
2. details of the compensation awarded (Para 2 , 4)
3. arguments on negligence and compensation calculation (Para 3 , 6 , 7 , 8)
4. court findings and validity of driver's license (Para 5 , 9)
5. conclusion and dismissal of appeal (Para 10)

1. Heard learned counsel for the appellant and learned counsel for the respondents.

2. The present appeal has been preferred by the appellant- insurance company challenging the award dated 09.11.2004 passed by the Motor Accident Claims Tribunal/Additional District Judge, Court No.5, Muzaffar Nagar (hereinafter referred to as 'Tribunal') in M.A.C.P. No.250 of 2003 whereby the Tribunal has awarded Rs.3,47,000/- along with 6% interest as compensation to the claimants/respondents.

3. Challenging the aforesaid award, learned counsel for the appellant has contended that deceased was employed as driver on Truck No.U.P-12-4282 which met with the accident on 27.02.2003 and dashed with a stationary truck. It is submitted that claim petition has been instituted under Section 166 of the Motor Vehicles Act and as there is no finding of the Tribunal on the issue of negligence, therefore, award passed by the Tribunal cannot be sustained in law. It is further contended that under Section 167 of Motor Vehicles Act , dependants of the deceased can institute claim petition claiming compensation either under the Motor Vehicles Act or under the Workmen Compensation Act as the claim petition has been filed for the death of deceased being employee on the truck, therefore, compensation should be computed as per the formula prescribed under Section 4A of the Workmen Compensation Act , 1923. Thus, it is contended that if compensation is computed by applying the formula prescribed under Section 4A of the Workmen Compensation Act , the compensation would reduce substantially, and thus, compensation awarded by the Tribunal is not sustainable in law.

4. Per contra, learned counsel for the respondents would contend that it is admitted that deceased was driver on truck, and under Section 167 of Motor Vehicles Act , it is the choice of the claimants/respondents to file claim petition either under Motor Vehicles Act or under Workmen Compensation Act . Thus, it is contended that in such view of the fact, the issue of negligence is not relevant. It is further contended that appellant- insurance company has not set up any plea in the written statement that compensation should be computed as per the Workmen Compensation Act since the claimants/respondents are claiming compensation against the owner of truck on which deceased was employed as driver on the principle of employer and employee relationship.

5. I have considered the rival submissions of the parties and perused the record.

6. So far as the issue with regard to negligence is concerned, it is not in dispute that deceased was employed as driver on the truck. By virtue of proviso to Section 147(1) of the Motor Vehicles Act , the driver is covered even if there was no premium paid by the owner covering the risk of driver. Since the liability of the insurance company for the driver is statutory liability, therefore, the question of negligence of driver in the accident is not relevant. In such view of the fact, the submission of learned counsel for the appellant on the issue of negligence is not sustainable in law and is rejected.

7. So far as the question as to whether compensation should be computed by the Tribunal on the formula prescribed under Section 4A of the Workmen Compensation Act is concerned, the said plea has not been set up by the insurance company in the written statement neither any issue was got framed on the said plea before the Tribunal. It is pertinent to note that under the insurance policy, the owner of the vehicle has paid premium of Rs.75/- covering the risk of three employees. Now the question in the instant case arises as to whether premium paid by the owner covers the unlimited liability of the employee

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top