NATIONAL INSURANCE CO LIMITED Vs. JETHU RAM

JUDGEMENT

(1.) These appeals by the insurer is directed against the judgment of Himachal Pradesh High Court in an appeal under Motor Vehicles Act, 1939. The Motor Vehicles Claims Tribunal after perusing the materials produced before it came to the conclusion that under the policy of insurance the insurer is not liable to pay the compensation in question and finally had awarded compensation to the claimants to be recovered from the owner of the vehicle. But during the pendency of the proceeding by virtue of the statutory liability accruing under Sec. 92A of the Motor Vehicles Act, 1939 payments have been made by the insurer to the extent of Rs. 15,000/- in case of death and to the extent of Rs. 7,500/- in case of permanent disablement. Considering the question that whether for this amount insurer would be at all liable in view of the finding of the Tribunal that the insurer has no liability under the policy of insurance to pay the compensation in question, the Tribunal came to hold that the said amount as provided under Chapter VIIA more particularly under Sec. 92A of the Motor Vehicles Act has to be borne by the insurer and the owner will not be liable to pay the said amount. In coming to the aforesaid conclusion the Tribunal relied upon the provisions of clauses 3(a) and (b) of Sec. 92B of the Act. Against the decision of the Tribunal when the matter was carried in appeal to the High Court, the High Court by the impugned judgment came to hold that the liability arising under Sec. 92A of the Motor Vehicles Act, 1939 is independent of liability to pay compensation under Sec. 110A, and therefore, such liability arising out of Sec. 92A has to be borne by the insurer. Mr. Sharma, the learned Counsel appearing for the appellant contended that the provisions of Secs. 92A and 92B have been thoroughly misread by the Tribunal as well as by the High Court and under those provisions there is no liability on the insurer to pay the compensation accruing under the aforesaid provisions, once it is ultimately held that under the policy of insurance the insurer has no liability to pay the compensation in question. To appreciate the contention of the learned Counsel it will be appropriate to extract the provisions of Secs. 92A and 92B of the Act :