United India Insurance Company Ltd v. Km. Nandi Devi

D/o Sri Jagatram R/o Chintpur P.O. Kaladhungia District Nainital through her next friend and natural guardian father Sri Jagatram U.P. State Road Transport Corporation through its Regional Manager, Nainital Sri Diwan Singh (since deceased) R/o Panuwanaula P.O. Panuwanaula, District Almora

3/1 Shri Rajendra Singh 3/2 Shri Shivraj Singh 3/3 Shri Mohan Singh All three sons of Late Diwan singh All R/o Panuwanaula District Almora............... Respondents Shri Pankaj Purohit, Advocate for the appellant. Shri Kurban Ali, Advocate for the respondent No.3. Hon’ble Prafulla C. Pant, J. This appeal, preferred under Section 110-D of Motor Vehicles Act, 1939, is directed against the award dated 31.08.1988 passed by Motor Accident Claims Tribunal (Special Judge), Nainital, whereby claimant was awarded compensation to the tune of Rs. 1,00,000/- the United India Insurance Company (the present appellant) was directed to pay the sum awarded.

2. Heard learned counsel the parties and perused the record.

Brief facts of the case are that on 16.05.1987, Nandi Devi, a young girl aged 7 years was travelling in bus registration No. URN 9757, owned by U.P. State Transport Corporation. When the bus was on its way from Nainital to Haldwani, another bus registration No. URN 525, which was owned by respondent No. 3- Diwan Singh, was being driven rashly and negligently by its driver, collided with the bus registration No. URN 9757. Consequently, the accident, the young girl lost her hand. She filed a petition before Motor Accident Claims Tribunal for compensation of Rs. 5,00,000/-. The vehicle URN 525 was insured, at the time of the accident, with respondent/appellant- United India Insurance Company. The petition was contested by the owner as well as by the insurance company. On the perusal of the pleadings, tribunal framed following issues:-

1. Whether Km. Nandi was injured in an accident in collision of bus registration No. URN 9757 and bus registration No. URN 525?

2. Whether the accident took place due to rash and negligent driving on the part of driver of bus registration No. 525?

3. To what amount compensation claimant is entitled and from whom?

After recording the evidence and hearing the parties, the tribunal found that it was the driver of bus registration No. URN 525, who was rash and negligent in driving the vehicle, and not of the bus registration No. URN 9757. It further found that the injured is entitled to compensation to the tune of Rs. 1,00,000/- for permanent disability, she has suffered the accident. The tribunal accordingly directed the United India Insurance Company (present appellant) with whom the vehicle URN 525 was insured, at the time of accident, to pay the awarded sum. Aggrieved by the same this appeal has been preferred.

Shri Pankaj Purohit, learned counsel for appellant drew attention of this Court provision contained in Clause (b) of sub-section (2) of Section 95 of Motor Vehicles Act, 1939, which provides as under:-

(2) Subject to the proviso to sub-section (1) a policy insurance shall cover any liability incurred respect of any one accident up following limits, namely:- (a).......... (b) Where the vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment- (i) respect persons passengers carried for hire or reward, a limit of fifty thousand rupees in all; (ii) .....................................................................

From the evidence on record, it is true that injured/claimant was not passenger of the vehicle, injured with insurance company, as such, present case is covered by Clause (b) of sub-section (2) of Section 95 of Motor Vehicles Act, 1939. That being so, liability of the appellant/insurance company is only up to the limit of Rs. 50,000/- Therefore, the appeal deserves to be allowed partly to the extent that out of the awarded sum of Rs. 1,00,000/-, appellant-United India Insurance Company is liable to make payment to the limit of Rs. 50,000/-. Remaining 50% of the sum out of the award of Rs. 1,00,000/-, the liability is that of the owner i.e. respondent No. 3- Diwan Singh.