ORIENTAL INSURANCE COMPANY LIMITED Vs. DEVIREDDY KONDA REDDY

JUDGEMENT

(1.) These appeals are directed against the common judgment rendered by a Division Bench of the Andhra Pradesh High Court. By the said judgment, it upheld view of learned single Judge that compensation is payable by the insurer even if the deceased persons in respect of whom claims are made were gratuitous passengers. Both the learned single Judge and the Division Bench relied on the decision of this Court in New India Assurance Company vs. Satpal Singh and others (2000) 1 SCC 237 for coming to this conclusion.

(2.) Since the point involved is one of law the factual position which is almost undisputed needs to be noted in brief. Certain persons were travelling in goods vehicles which were subject-matter of insurance with the appellant Oriental Insurance Company Limited hereinafter referred to as (the Insurer). The vehicles met with accidents resulting in death of several persons who were either unauthorized or gratuitous passengers in the said vehicles. Their legal representatives lodged claims under Motor Vehicles Act, 1988 (hereinafter referred to as the Act). Though the accidents took place on different dates, the Motor Accident Claims Tribunal Anantapur, (hereinafter referred to as (the Tribunal) took up the cases together as according to it the points of dispute were identical. It held that the deceased persons accompanied the goods which were transported by the goods carriages in question. Accordingly, it held that the insurer was liable to indemnify the award passed. In appeals filed by the insurer, learned single Judge concurred with view of the Tribunal relying on Satpal Singhs case (supra). As noted above, the Division Bench dismissed the appeals against learned single Judges judgments. The said common judgment as noted above is under challenge in these appeals.

(3.) Learned counsel for the insurer appellant submitted that S. 149(2) of the Act is etymologically different from proviso (ii) to S. 96(2)(b) of the Motor Vehicles Act 1939 hereinafter referred to as the (old Act) and, therefore, the ratio in Satpal Singhs case (supra) has no application. In response learned counsel appearing for the claimants submitted that in Satpal Singhs case (supra) such a stand has been negatived and it has been held that insurer is liable to pay compensation to gratuitous passengers.