High CourtsSingle Bench(2017) 08 GUJ CK 0032

ORIENTAL INSURANCE COMPANY LTD vs JAGDISHBHAI MAVUBHAI (DECD. THRO LEGAL HEIRS & REP.) & ORS.

Gujarat High Court · Decided on 3 August 2017

HON’BLE JUDGES
Z.K.Saiyed
CASE NUMBER
470 of 2006

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Judgment

60 paragraphs · 625 words
1.

This First Appeal is filed by the appellant-Insurance Company

under Section 173 of the Motor Vehicle Act praying for modifying the

judgment and order dated 06.05.2005 passed by the learned Motor

Accident Claims Tribunal (Aux III), Surendranagar in M.A.C.P. No.755

of 2002, whereby the learned Tribunal had awarded compensation to

the tune of Rs.3,17,480/- to the original claimants from the appellant

and respondent No.3 with interest at the rate of 9% from the date of

filing of the claim petition till the realization.

2.

Brief facts of the case is that on 14.10.2001 during the night at

about 8:30 p.m, when the deceased was traveling in a Truck bearing

registration No.GJ-17-T-5624 on Dholera-Viramgam road with goods,

however, the driver could not control over the steering due to excessive

speed and therefore, the said Truck turned turtled. As a result of which,

the deceased died on the spot and therefore, the legal heirs of the

deceased have filed Claim Petition seeking compensation to the tune of

Rs.2,00,000/-.

3.

Heard Mr. Maulik Shelat, learned advocate for the appellant-

Insurance Company, Mr. Yash Joshi, learned advocate for Mr. Nirav

Thakkar, learned advocate for the respondent No.3. Respondent Nos.1

and 4 were deleted as per the order of the Court. Rule issued to

respondent No.2 is duly served, however, none appeared.

4.

Mr. Maulik Shelat, learned advocate for the appellant-Insurance

Company contended that the deceased was traveling in goods vehicle

not as owner of goods, but as a passenger. From the record, it is

revealed that the deceased was gratuitous passenger in the goods

vehicle and therefore, as per the provisions of law, there is no liability of

the appellant-company to pay the amount of compensation. Therefore,

Insurance Company is not liable to pay compensation because the

deceased was traveling as a passenger in the goods vehicle. He

further contended that since deceased was traveling in goods vehicle as

gratuitous passenger, liability of the Insurance company is not covered

under the insurance policy. He prayed for exonerating the Insurance

Company from the compensation.

5.

Mr. Yash Joshi, learned advocate has vehemently argued that the

contents of the affidavit are not properly explained by the uncle of the

claimants in the statement given by him. It is not established that the

deceased was traveling in goods vehicle i.e. Truck as a passenger and

is not established that who was the owner of the goods, which were

lying in the Truck. He therefore, prayed to dismiss the appeal filed by

the Insurance Company.

6.

Having considered the submissions made by learned advocates

for the parties and having carefully examined the material available on

record, this Court finds substance in the submissions made by learned

advocate for the appellant-Insurance Company. In light of these facts,

the learned Tribunal has committed grave error in finding the insurance

company liable to pay the amount of compensation. The deceased was

traveling in goods vehicle as gratuitous passenger and therefore,

Insurance Company is not liable to pay compensation to claimants and

only owner i.e. respondent No.3 is liable to pay compensation.

Therefore, contention raised by learned advocate Mr.Maulik Shelat, can

be accepted and the Insurance Company is hereby exonerated from the

liability of paying the amount compensation. Therefore, there is

substance in present appeal. Accordingly, present appeal is partly

allowed with an observation that the amount which is withdrawn by the

claimants would not be recovered from the claimants and remaining

amount lying in FDR shall be returned back to the Insurance Company.

It is open for the claimants to recover the said amount from the

registered owner of the vehicle in accident. Rule is made absolute to the

aforesaid extent. Records and proceedings, if any, be sent back to the

trial Court, concerned forthwith.