ORIENTAL INSURANCE CO LTD Vs. SHIVALINGAMMA

JUDGEMENT

(1.) THIS appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the present appellant, i. e. , Oriental Insurance Co. Ltd. , which has been respondent No. 5 in the main claim petition, challenging the order passed by Mr. V. Jaganathan, Addl. Distt. Judge, M. A. C. T. II, Mandya, disposing of the application under Section 140 of the Act and ordering that all the petitioners together are entitled for interim compensation of Rs. 25,000 under Section 140 of the act with simple interest at the rate of 6 per cent per annum from the date of application till date of realisation. The Tribunal further found that the respondents, i. e. , the owner and insurer of the tractor as well as the owner and insurer of the trailer are jointly and severally responsible to pay the sum of Rs. 25,000 to the petitioners.

(2.) IN application it has been alleged that on 9. 7. 1991 the deceased Shanthu was going through 'a' circle, Malavalli Town towards Pete and he was moving on the road on correct side from 'a' circle. At that time the respondent No. 1 in the claim petition was coming on the tractor bearing no. MYN 5879 and the trailer No. 3910 driving that tractor and trailer in rash and negligent manner and hit the deceased. The deceased fell down due to the accident and sustained several multiple head injuries and later died on the spot. Objection statement had been filed by all the respondents to the main petition under Section 166 of the Act as well as to the application under section 140 of the Act. The respondents to the claim petition including present appellant and respondent Nos. 6 to 8 in the memo of appeal in their objections to Section 140 application stated that both the vehicles which were involved in the accident had been insured. The factum of the accident taking place on 9. 7. 1991 had also not been disputed. Respondent No. 4 in its objections stated that trailer bearing No. 3910 was not insured with respondent No. 4 to the claim petition, i. e. , that it was insured with present appellant on the date of accident. Hence the respondent No. 4 denied its liability to pay compensation and alleged that deceased was hit by the trailer. In the objections filed by the respondent No. 5 it has been stated that: vehicle involved in the accident tractor No. MYN 5879 is insured with respondent No. 4 and the respondent No. 1 was the employee of respondent No. 2 who insured the tractor with respondent no. 4. The accident took place due to the act of respondent No. 1 for which respondent No. 2 is liable and respondent No. 4 is vicariously liable to pay any compensation to be awarded. It is on the basis of these pleadings the present appellant who has been respondent No. 5 denied its liability. It has nowhere been alleged in this application that there was any breach of any condition of the policy of insurance.

(3.) THE Tribunal on the basis of the pleadings of the respondents tentatively found that it is an admitted fact that both the vehicles, i. e. , tractor and trailer were involved in the accident and that tractor and trailer have been insured motor vehicles with the insurance companies and it recorded the finding to that effect as well. It held that it has also been established that both the vehicles involved in the accident are insured and, therefore, the petitioner is entitled to interim compensation as per Section 140 of Motor Vehicles Act, 1988 on the principle of 'no fault' It further observed that in the statement of objections of respondent No. 4, i. e. , United India insurance Co. Ltd. , it has been stated that deceased was hit by trailer and respondent No. 4 is not liable to pay the compensation, and it observed that in view of the rival stands taken by respondent No. 4 that it is not necessary at this stage to enquire into the respective pleadings raised by respondent Nos. 4 and 5 and passed the order as referred to above, granting interim compensation under Section 140 of the Act to the tune of Rs. 25,000 and fastening the liability on two sets of insurers and owners of the vehicles involved and one set of owner and insurer relating to tractor and the other set of owner and insurer relating to trailer jointly and severally to the extent of 50 per cent each. Having felt aggrieved from this above-mentioned order, the oriental Insurance Co. Ltd. , respondent No. 5 in claim petition has come up in appeal before this court challenging the extent of its liability to pay the compensation.