Insurance company liability to pay compensation initially when deceased is a gratuitous passenger in a goods vehicle.

ORDER

1. Leave granted.

2. The short question arising for decision making in this appeal is whether in the facts and circumstances of the case the High Court was justified in reversing the finding of the Motor Accident Claims Tribunal (for short ‘the Tribunal’), which had directed the Insurance Company to first pay the amount of compensation to the claimants and thereafter, recover the same from the owner of the vehicle.

3. As per the claim petition, the deceased was travelling in the tempo which was taken on rent on the occasion of Ganesh Immersion festival and was heading to immerse the idol into the Narmada River.

4. Indisputably, the tempo was a goods vehicle and was insured with the respondent Insurance Company on the date of accident. The Tribunal vide its award dated 11.01.2010 held that the claimants would be entitled for compensation of ₹13,23,000/- (Rupees Thirteen Lakhs Twenty Three Thousand), which shall be deposited by the Insurance Company, and the same shall be recovered from the owner of the vehicle.

5. The Insurance Company preferred an appeal against the said part of the award wherein the Tribunal had directed to first pay and, thereafter, recover the same from the owner of the vehicle.

6. In the impugned order, the High Court has set aside the order of the Tribunal to hold that the Insurance Company is not liable to first pay and then recover the amount of compensation from the owner of the vehicle.

7. Shri Md. Tahir M. Hakim, learned counsel appearing for the appellants-claimants would refer to this Court’s judgment reported in Manuara Khatun & Ors. Vs. Rajesh Kumar Singh & Ors., . (2017) 4 SCC 796 which, in turn, placed reliance on National Insurance Company Limited vs. Saju P. Paul & Anr., . (2013) 2 SCC 41 , to argue that when the deceased was a gratuitous passenger in a goods vehicle, the Insurance Company can be directed to pay the amount and recover the same from the owner of the vehicle.

8. Per contra, learned counsel appearing for the respondent Insurance Company would refer to this Court’s judgment reported in Amudhavalli & Ors. vs. HDFC Ergo General Insurance Company Ltd. & Ors., . 2025 INSC 1219 to submit that this Court having referred to Saju P. Paul (supra) has held that in a case where the deceased was travelling in a goods vehicle on rent, the Insurance Company cannot be fastened the liability even to the extent of first pay and then recover.

9. We have heard learned counsel for the parties and perused the record.

10. In the present case, the deceased was travelling in the subject tempo along with Ganesh Idol, which was taken for immersion in Narmada River. Thus, the dominant purpose for hiring the vehicle was not for travelling but for carrying the Ganesh idol for immersion. Travelling in the vehicle was only incidental, therefore, at best, the deceased can be treated as gratuitous passenger travelling with his goods (Ganesh idol). This being the circumstance, we rely on the judgment in the matter of Manuara Khatun & Ors. (supra) wherein this Court has held thus in paragraph Nos. 15 and 16:-

“15. This question also fell for consideration recently in National Insurance Co. Ltd. v. Saju P. Paul [National Insurance Co. Ltd. v. Saju P. Paul (2013) 2 SCC 41 : (2013) 1 SCC (Civ) 968 : (2013) 1 SCC (Cri) 812 : (2013) 1 SCC (L&S) 399] wherein this Court took note of entire previous case law on the subject mentioned above and examined the question in the context of Section 147 of the Act. While allowing the appeal filed by the insurance company by reversing the judgment [Saju P. Paul v. National Insurance Co., 2011 SCC OnLine Ker 3791:2012 ACJ 1852] of the High Court, it was held on facts that since the victim was travelling in offending vehicle as “gratuitous passenger” and hence, the insurance company cannot be held liable to suffer the liability arising out of accident on the strength of the insurance policy. However, this Court keeping in view the benevolent object of the Act and other relevant factors