Tahir Ali vs Santram and Others

Servesh Kumar Gupta, J.—Insurance Company was made liable to pay the awarded amount of compensation to the tune of Rs. 3.34 lakh to the parents of injured girl Ms. Renu, who later on, succumbed to the injuries. Ms. Renu suffered injuries out of this accident occurred by Vikram Auto bearing No. UK-08TA-2553, wherein seventeen girls were travelling at a time, while the said Auto was having the permit to transport only eight passengers including driver at a time. Learned Tribunal, though awarded compensation against the owner of the vehicle, but directed the insurance company to pay the same with a right to recover it from the owner. Feeling aggrieved, Tahir Ali has come up before this Court.

Learned counsel for the appellant has relied upon a precedent of the Hon Tale Apex Court in the case of National Insurance Co. Ltd. Vs. Anjana Shyam and Others, '', wherein it was held that the insurance company can be held liable to pay only for such number of injured persons who could be transported by the vehicle concerned under the limit of permit. In the case in hand, admittedly, the permit was valid to carry the passengers inasmuch as eight including the driver. So, the insurance company will be liable to pay compensation in respect of eight injured persons and if more than eight are injured, then only the liability can be shifted to the owner of the vehicle. In view of what has bean held by the Hon Tale Apex Court in the said precedent, this appeal is hereby allowed. Impugned judgment and order is modified to the extent that the awarded amount shall be paid only by the insurance company and the recovery rights of the insurance company against the owner of the vehicle are done away with.