NEW INDIA ASSURANCE CO. LTD Vs. MITHILESH DEVI

JUDGEMENT

(1.) THESE three Appeals (MAC APP.516/2004, MAC APP.517/2004 and MAC APP. 519/2004) arise out of three separate judgments dated 15.07.2004 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) in Suit No.309/03, 308/03 and 306/03 respectively whereby a compensation of Rs. 2,33,435/- Rs. 30,000/- and Rs.83,970/- was awarded in favour of the Claimants.

(2.) DURING inquiry before the Claims Tribunal, the Appellant Insurance Company took up the plea that the offending vehicle No.HR-38B-2523 was insured as a goods vehicle and the Appellant was not liable to pay the compensation as the victim/victims were travelling as gratuitous passengers in the earlier said tempo. The Claims Tribunal agreed with the Appellant's submission that the vehicle was insured for carrying goods and not for carrying passengers. The Claims Tribunal said that there was breach of the terms of the policy and thus while making the Appellant Insurance Company liable to pay the compensation awarded, granted it recovery rights.

(3.) IN National INsurance Company v. Baljit Kaur and Ors. (2004) 2 SCC 1, the Supreme Court relied upon Asha Rani and held that since the law laid down in New INdia Assurance Co. Ltd. v. Satpal Singh, (2000) 1 SCC 237 was overruled only in Asha Rani, the Appellant INsurance Company was directed to satisfy the award and to recover the same from the owner of the vehicle. Relevant portion of Para 21 of the report is extracted hereunder:-