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2020 DIGILAW 394 (AP)

United India Insurance Co. Ltd, Madanapalle v. Y. Bathula Reddy

2020-05-28

NINALA JAYASURYA

body2020
JUDGMENT : 1. This is an Appeal preferred by the appellant/insurant company, aggrieved by the judgment and decree dated 14.03.2006 in M.V.O.P.No.390 of 2004 passed by the Motor Accidents Claims Tribunal-cum-II Additional District Judge, Madanapalle(herein after referred to as Claims Tribunal). 2. The brief facts that lead to the filing of the present Appeal are as follows; 3. The 1st respondent/claimant filed M.V.O.P.No.390 of 2004 claiming a sum of Rs.50,000/-towards compensation for the injuries sustained by him in a road accident occurred on 17.02.2002. The appellant/2nd respondent-insurance company contested the matter and the Claims Tribunal by an Award dated 14.03.2006 allowed the O.P., partly and granted Rs.25,000/-towards compensation along with interest @ 7.5% p.a. The Claims Tribunal held that there is a breach of policy conditions by the owner of the vehicle in plying the offending vehicle as a passenger vehicle and by applying the principle in the case of National Insurance Company Limited v. Swaran Singh & Others directed the appellant/2nd respondent insurance company to deposit the awarded amount and the recover the same from the owner of the vehicle by way of filing Execution Petition. 4. Aggrieved by the above said judgment and decree, the appellant/2nd respondent-insurance company filed the present Appeal. 5. Heard Sri Naresh Byrapuneni the learned counsel for the appellant/2nd respondent-insurance company. The learned counsel while contending that the owner of the vehicle did not pay any premium to cover the risk of the passenger and the policy in question does not cover the inmates submits that the appellant/2nd respondent insurance company is not liable to pay any compensation. The learned counsel further submits that the Claims Tribunal erred in directing the appellant/2nd respondent insurance company to deposit the awarded amount and to recover the same from the owner of the vehicle by filing Execution Petition. The learned counsel submits that the Claims Tribunal erred in applying the principle laid down in the case of National Insurance Company v. Swaran Singh & Others, (2004) ACJ 1 (SC) to the facts of the present case and that in any event, the latest judgment of the Hon’ble Supreme Court in Manuara Khatun & Others v. Rajesh Kr. The learned counsel submits that the Claims Tribunal erred in applying the principle laid down in the case of National Insurance Company v. Swaran Singh & Others, (2004) ACJ 1 (SC) to the facts of the present case and that in any event, the latest judgment of the Hon’ble Supreme Court in Manuara Khatun & Others v. Rajesh Kr. Singh & Others, (2017) (4) SCC 796 is applicable wherein the Hon’ble Supreme Court directed the insurance company to first pay the awarded amount and permitted it to recover the awarded sum from the owner in execution proceedings arising in the very case. 6. As seen from the judgment relied on by the learned counsel for the appellant referred to above, the Hon’ble Supreme Court while following the Law laid down in Saju P.Paul’s case, (2013) 2 SCC 41 directed the insurance company to first pay the awarded sum to the claimants and then to recover the awarded sum from the owner in Execution Proceedings arising in the very case. 7. Following the same, the judgment and decree of the Claims Tribunal is modified with a direction to the appellant/2nd respondent insurance company to first pay the awarded compensation including interest in terms of the decree within a period of three months. The insurance company is permitted to recover the awarded sum/compensation amount from the owner of the vehicle i.e., the 2nd respondent herein, in Execution Proceedings arising in the very case. On deposit of amounts as directed, the claimant/1st respondent is entitled to withdraw the same. No order as to costs. 8. Accordingly, the Appeal is disposed off modifying the judgment and decree of the Claims Tribunal as indicated above. 9. Miscellaneous Petitions, if any, pending in this appeal shall stand dismissed.