NEW INDIA ASSURANCE CO LTD Vs. MOHAR BAI

JUDGEMENT

(1.) THESE two Appeals are preferred by the Appellant New India Assurance Company Limited against a common judgment dated 21.02.2009 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby while granting compensation of Rs. 54,000/- (in MACT No.563/08 and in MAC APP.229/2009) and a compensation of Rs. 2,70,000/- (in MACT No.561/2008 and in MAC APP.230/2009), the Appellant was made liable to pay the compensation on the basis of the judgment of the Calcutta High Court in New India Assurance Company Limited v. Rajender Singh, 2000 ACJ 1039 and a judgment of the Gujarat High Court in Savita Ben S. Valand v. Dhiraj Lal, AIR 1998 Gujarat 266.

(2.) THE Appellant Insurance Company has not challenged the finding on negligence or on the quantum of compensation. THE only ground of challenge is that since deceased Ms. Suman and Respondent Smt. Mohar Bai were travelling in a tractor bearing registration No.RJ-29-R-3488 as gratuitous passengers (not as the owner of the goods), the Insurance Company had no liability to pay the compensation at all.

(3.) ON interpretation of Section 147 of the Motor Vehicles Act (the Act) it has been held in Asha Rani (Supra) and Baljit Kaur (Supra) that the Insured is under obligation to obtain a policy in respect of all goods vehicles, apart from liability to third party, liability of injury to the owner of goods or his authorized representative who is travelling with the goods in the goods vehicle. Paras 7 to 13 and 20 of the report in Baljit Kaur (supra) are extracted hereunder:-