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Judgment
The Supreme Court in the case of New India Assurance Company v Satpal Singh and Others, has held as follows.--
"The result is that under the new Act an insurance policy covering third party risk is not required to exclude gratuitous passengers in a vehicle, no matter that the vehicle is of any type or class. Hence the decisions rendered under the old Act vis-a-vis gratuitous passengers are of no avail while considering the liability of the insurance company in respect of any accident which occurred or would occur after the new Act came into force".
Following the above judgment and for the reasons stated therein, I hold that the Insurance Company is liable and not the owner.
Accordingly the 3rd respondent-Insurance Company is directed to deposit the compensation amount with interest at 6% p.a. as expeditiously as possible.
The appeal is allowed to the extent that the appellant is not held liable as it is covered by the Insurance Policy as held by the Supreme Court in the decision cited supra. The amount that has been deposited in this Court pursuant to the appeal shall be refunded to the appellant. The M.F.A. is allowed accordingly. The award is modified accordingly. No costs.