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2016 DIGILAW 12 (GUJ)

New India Assurance Co Ltd. v. Champaben Narsinhbhai Patel

2016-01-04

M.R.SHAH

body2016
JUDGMENT : M.R. Shah, J. As common question of law and facts arise in this group of appeals and as such arise out of the same accident and the impugned judgment and award passed by the learned Tribunal, all these appeals are decided and disposed of by this common judgment and order. 2. Feeling aggrieved and dissatisfied with the impugned judgment and award passed by the learned Motor Accident Claims Tribunal (Auxi), Fast Track Court No. 2, Vadodara passed in MACP Nos. 892 of 1990, 893 of 1990 and 1668 of 1991 in so far as holding the appellant herein - original opponent no.3 - insurer of the Tempo bearing registration No. GTS-9187 involved in the accident, the appellant herein - original opponent no.3 - New India Assurance Company Limited, insurer of the Tempo bearing registration no. GTS9187 has preferred present First Appeals. 3. All these appeals are limited on the ground of the liability of the Insurance Company. The case of the Insurance Company is that the deceased were travelling in a goods vehicle and there was a breach of the conditions of the Insurance Policy and the Insurance Company was therefore not liable to cover the risk. 4. Shri Palak Thakkar, learned advocate for the appellant Insurance Company has pointed out that accident occurred in the year 1990, more particularly, on 11.5.1990, after the Motor Vehicles Act, 1988 was brought into force. The same was before the amendment in Section 147 which was brought with effect from 14.1.1994. It is submitted that therefore in that view of the matter, the risk of passengers travelling with goods would not be covered. Therefore, it is submitted that the Claims Tribunal has materially erred in holding the appellant Insurance Company liable to pay compensation. 5. In support of his contention, learned Counsel relied on the following decisions of the Supreme Court : (1). Mallawwa (Smt.) and Others v. Oriental Insurance Company Ltd. and Others reported in 1999 1 SCC 403 ; (2). New India Assurance Co. Ltd. v. Asha Rani and Others reported in 2003 2 SCC 223 . (3). New India Assurance Co. Ltd. v. Vedwati and Others reported in 2007 9 SCC 486 . 6. Shri MTM Hakim, learned advocate for the original claimants is not in a position to dispute the above and as such is not disputing the above. Ltd. v. Asha Rani and Others reported in 2003 2 SCC 223 . (3). New India Assurance Co. Ltd. v. Vedwati and Others reported in 2007 9 SCC 486 . 6. Shri MTM Hakim, learned advocate for the original claimants is not in a position to dispute the above and as such is not disputing the above. However, has requested to make suitable observations that whatever amount the original claimants have withdrawn and/or were permitted to withdraw, the same may not be recovered from the original claimants and same may be recovered from the owner of the vehicle involved in the accident. 7. Undisputed facts are that the accident took place before the amendment in Section 147 which was brought about in the year 1994. The other aspect is that the deceased was travelling in goods carrying vehicle. In that view of the matter and in view of the judgment in the case of New India Assurance Co. Ltd. v. Asha Rani and Others (supra) and New India Assurance Co. Ltd. v. Vedwati and Others (supra), the Claims Tribunal committed an error in judging the liability of the Insurance Company to cover the risk. 8. In view of the above undisputed facts and the accident occurred prior to the amendment in Section 147 of the Motor Vehicles Act, 1988 i.e. prior to 14.11.1994, all these appeals are allowed. The appellant Insurance Company is absolved of its liability to pay compensation under the impugned awards. The impugned judgment and awards passed by the learned Tribunal are modified to the aforesaid extent. The amount still lying with the Claims Tribunal, and deposited by the Insurance Company, would be returned with accrued interest, if any. However, the accident took place way back in the year 1990. Some portion of the compensation has already been withdrawn by the claimants. They might have also have received periodical interest. To the extent, amount already received by the claimants, there shall be no recovery from them. The Insurance company would be allowed to recover the same from the owner in these proceedings without having to file separate proceedings. 9. The Appeals are allowed in the above terms. Record and proceedings be transmitted to the Trial Court. Order accordingly.