RAMASHRYA SINGH Vs. NEW INDIA ASSURANCE COMPANY LIMITED

JUDGEMENT

(1.) Leave granted.

(2.) The appellant is the owner of a vehicle, described as a "trekker", in which passengers are carried for hire. He employed Shashi Bhushan Singh as a "Khalasi" of the vehicle. On 21-10-1998 the vehicle met with an accident as a result of which Shashi Bhushan Singh died. The legal heirs of the deceased employee filed a claim in the Workmens Compensation Court against the appellant, as the owner of the vehicle, and against the respondent insurance company. The Workmens Compensation Court held that the vehicle had been comprehensively insured with the respondent and that since the accident had occurred during the period of insurance, the insurance company was liable to pay the compensation on account of the death of the employee. The respondent was, therefore, directed to deposit the compensation determined under the provisions of The Workmens Compensation Act, 1923.

(3.) The decision was challenged by the respondent before the High Court at Patna under Art. 226. The High Court allowed the writ petition. It held that in the absence of any special contract between the appellant and the respondent, the rights of the parties were governed by statute which did not require the respondent to cover liability in respect of an accident to a khalasi. The statute in question is the Motor Vehicles Act, 1988 (referred to hereinafter as the Act).