ORIENTAL FIRE AND GENERAL INSURANCE Vs. VERSUS

JUDGEMENT

(1.) -All the three appeals were heard together and are being disposed of by a common judgment as common questions of law and facts are involved. These appeals are under Section 110D of Motor Vehicles Act, 1939.

(2.) ON 15.3.1984 in a collision in between Bus No. USI-9813 and Bus No. DLP 1231, one Ajay Sharma and his sister Smt. Madhu Shukla lost their lives and husband of Madhu Shukla i.e. brother-in-law of Ajay Sharma received injuries. Parents of Ajay Sharma filed Claim Petition No. 23 of 1984 giving rise to the First Appeal From Order No. 336 of 1988. These persons were travelling in Bus No. USI 9813. The claim petition was filed by the parents of Ajay Sharma on the pleas inter alia that the driver of the Bus No. USI 9813 in which Ajay Sharma was travelling from Moradabad to Rampur side was driving it rashly and negligently. When the bus reached near village Kunda about 6 kilometres away from Rampur towards Moradabad, the Bus No. DLP 1231 came from Rampur side and there took place head-on-collision between the aforesaid two buses. The driver of Bus No. USI 9813 lost control over the speed and it fell into a ditch (Khad.) Ajay Sharma and his sister Madhu received fatal injuries. The Bus No. USI 9813 was insured with the appellant, Oriental Fire and General Insurance Company, was being plied under the control of U. P. State Road Transport Corporation. The Claims Tribunal decreed the Claim Petition No. 23 of 1984 for recovery of Rs. 34,000 against the defendant No. 3 therein, namely Oriental Fire and General Insurance Company. The Oriental Fire and General Insurance Company has approached this Court by way of above First Appeal From Order No. 336 of 1988. ON similar allegations the Claim Petition No. 12 of 1984 was filed by Shri Shreekant Shukla, husband of Smt. Madhu Shukla claiming compensation of the death of his wife, before the Claims Tribunal and he has been awarded a sum of Rs. 28,600 against the insurance company, the appellant herein by the award dated 30.1.1988. Shri Shreekant Shukla who was also a co-passenger had received injuries, filed the Claim Petition No. 11 of 1984 for compensation of injuries received by him the aforestated accident before the Claims Tribunal and it has awarded a sum of Rs. 24,000 by the award dated 3rd of January, 1988 against which the First Appeal From Order No. 428 of 1988 has been filed.

(3.) STRONG reliance was placed by the learned counsel for the appellant on a decision of the Apex Court in Rajasthan State Road Transport Corporation v. Kailash Nath Kothari and others, 1997 ACJ 1148 : 1998 (1) AWC 508 (SC). This decision is the anchor-sheet of the appellant. In the case cited above, the ill-fated bus was under the control of Rajasthan State Road Transport Corporation and was being driven by its driver on the ill-fated day. The said bus met with an accident and a question arose as to who will bear the liability to compensate the claimants and victims. The insurance company was held liable to pay the compensation amount to the extent of its limited statutory liability, a total amount of Rs. 75,000 only. The Rajasthan State Road Transport Corporation was also held liable for the remaining balance amount, a compensation over and above the statutory liability of the insurer. The contention of the Rajasthan State Road Transport Corporation that since it was only hirer and not owner of the bus, it could not be fastened with any liability of payment of compensation, was examined and rejected by the Apex Court. Therefore, the learned counsel for the appellant submits that it is for the State Road Transport Corporation to bear the burden of compensation in its entirety. However, it is difficult to agree with his submission.