LAWS(MAD)-2008-7-20

DIVISIONAL MANAGER Vs. VINAYAGA MOORTHI

Decided On July 18, 2008
DIVISIONAL MANAGER, NEW INDIA ASSURANCE CO. LTD. Appellant
V/S
VINAYAGA MOORTHI Respondents

JUDGEMENT

(1.) CHALLENGE in these appeals is with regard to liability of the appellant insurance company to compensate the gratuitous passengers, who travelled in a trailer bearing registration No. TNZ 5897. Out of 22 persons, who travelled in the tractor to attend a funeral ceremony, 18 of them sustained injuries. They made separate claims. As the evidence let in was common, all the claim petitions were jointly tried and disposed of by a common judgment and decree dated 14.8.2007. Having regard to the nature of injuries sustained, 18 respondents-claimants were awarded Rs. 8,000 each, in respect of four claim petitions, separate awards were made.

(2.) ASSAILING the common impugned judgment, Mr. B. Vijay Karthikeyan, the learned counsel for the appellant, relying on the judgments of the Supreme Court in Oriental Insurance Co. Ltd. v. Brij Mohan, 2007 ACJ 1909 (SC); National Insurance Co. Ltd. v. Prema Devi, 2008 ACJ 1149 (SC); National Insurance Co. Ltd. v. Bhukya Tara, II (2009) ACC 545 (SC) and National Insurance Co. Ltd. v. Kaushalaya Devi, 2008 ACJ 2144 (SC), submitted that as all the passengers travelled in the tractorcum-trailer, they were gratuitous passengers and, therefore, the appellant insurance company is not liable to pay compensation. He further submitted that the extraordinary jurisdiction conferred on the Apex Court under Article 136 read with Article 142 cannot be exercised by subordinate judiciary, viz., the Tribunal and, therefore, in the absence of such jurisdiction fastening the liability on the insurance company to pay compensation to the gratuitous passengers and recover the same from the owner of the vehicle is in excess of jurisdiction and, therefore, needs correction. In these circumstances, he prayed that the awards passed against the insurance company be set aside.

(3.) BEFORE adverting the facts of the case, this court deems it fit to extract the relevant provision of the Motor Vehicles Act, 1988 which deals with the requirements of policies and limits of liability of insurance companies. Section 147 of the Motor Vehicles Act, 1988 reads as follows: