High CourtsSingle Bench(2000) 12 AP CK 0007

Branch Manager, United India Insurance Co. Ltd. vs Gollu Somi Naidu and Others

Andhra Pradesh High Court · Decided on 27 December 2000 · Citation: (2001) 2 ACC 564 : (2001) 3 ALT 190

HON’BLE JUDGES
N.V. Ramana, J
RESULT
Dismissed
CASE NUMBER
A.A.O. No. 307 of 2000

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Judgment

6 paragraphs · 412 words

N.V. Raman, J.—This appeal is filed by the United India Insurance Company Limited, aggrieved by the order, dated 6-1-1997 in O.P. No. 11/1996 on the file of the Motor Accidents Claims Tribunal, Vizianagaram.

2.

When the 1st respondent herein was travelling in a van bearing No. AND 5704 on 1-3-1991, it turned turtle near Gavarammapeta village because of the rash and negligent driving of its driver, the 2nd respondent herein, due to which the 1st respondent sustained injuries all over his body. He, therefore, laid a claim in the above said O.P., for a compensation of Rs. 80,000/-. The Tribunal, after considering the evidence on record, found that the accident took place due to the rash and negligent driving of the 2nd respondent. It awarded a compensation of Rs. 25,000/- to the 1st respondent with interest at the rate of 12 per cent per annum from the date of the petition till the date of deposit, and held that the appellant the 2nd and the 3rd respondents herein were jointly and severally liable to pay the compensation.

3.

Aggrieved by this order, the Insurance Company has preferred the present appeal.

4.

The only ground urged by the appellant is that the 1st respondent was a fare-paid passenger travelling in a goods vehicle and, therefore, the Insurance Company is not liable to pay compensation as the owner-of the vehicle had violated the conditions of the insurance policy.

5.

The Tribunal considered the evidence on record and found that the deceased was a fare-paid passenger travelling in the goods vehicle. The Insurance Company did not examine any one and it also did not mark any document. On the overall view of the matter, the Tribunal awarded the compensation as mentioned supra.

6.

The ground that the Insurance Company is not liable to pay compensation in respect of a fare-paid passenger travelling in a goods vehicle is no more a good ground in view of the judgment of the Supreme Court in the case of New India Assurance Co. Ltd. v. Satpal Singh 2000(1) ALD 50 :2000(2) ALT 2.4 (DN SC). The Apex Court held in that case that a fare-paid passenger travelling in a goods vehicle is also entitled to compensation and the Insurance Company cannot escape its liability. The Insurance Company is also jointly and severally liable to pay compensation along with the owner of the vehicle. In this view of the matter, the appeal fails and it is accordingly dismissed. No costs.