PARAGOUNDA Vs. BHIMAPPA AND OTHERS

JUDGEMENT

(1.) IN this reference under section 7 of the Karnataka High Court Act, the following questions are referred for the opinion of the Full Bench :

(2.) SINCE the reference has arisen in a review petition, the brief facts of the case leading to the reference are stated as under : On February 24, 1987, the car, bearing registration No. MRZ 5694, driven by respondent No. 5, while proceeding on Saundatti Munawalli Road in Belgaum District, dashed against P.W. -1, Gujjawwa, and Tulasawwa causing injuries to the former and instant death of the latter person. The accident and the resultant death of Tulasawwa and injuries sustained by P.W.1 are not disputed. It is also established that the accident was due to the negligence of the driver of the vehicle.

(3.) UPON applying the ratio of the decision in National Insurance Co Ltd. Vs. Mallikarjun and others, ILR (1990) KAR 1 while absolving the insurance company and the transferor of their liability, the Accidents Claims Tribunal held respondent No. 1, the transferee who was the owner of the car on the date of the accident as well as respondent No. 3, the driver, were liable to pay the compensation to the claimants. The correctness and legality of the award being challenged by the petitioner (the transferee of the vehicle) in M. F. A. No. 2027 of 1990, in so far as he is made liable to pay the compensation, the Division Bench has by its judgment dated November 5, 1990, dismissed the appeal and thereby affirmed the award. The petitioner has sought for review of the said judgment on the ground that there is an error apparent in the order since the court has failed to appreciate that the Full Bench has not disagreed with the view taken by the Andhra Pradesh High Court in Madineni Kondaiah v. Yaseen Fatima to the effect that so long as the obligations under the statute are not fulfilled by the transferor as contemplated under section 31, read with section 94 of the Motor Vehicles Act, the public liability will not cease and keeps the policy alive in respect of third party risks. Consequently, the insurer is liable to indemnify the third party.