NEW INDIA ASSURANCE COMPANY LTD Vs. VISHWANATH

JUDGEMENT

(1.) The appeal is to challenge Judgment and Order in Claim Petition No. 37/1993 dated 20/6/2001 decided by learned Member, Motor Accident Claims Tribunal, Nagpur. Whereby after considering the evidence on record, learned Tribunal held the appellant as well as other respondents jointly and severally liable to pay the compensation. In Claim Petition No. 36/1993, Tribunal awarded compensation in the sum of Rs. 60,000/- to claimants inclusive of no fault liability. While in the Claim Petition No. 37/1993 compensation in the sum of Rs. 96,000/- was awarded payable jointly and severally by the respondents therein. Compensation was payable together with interest at the rate of Rs. 9% per annum from the date of claim petition till realization. It appears that facts pleaded in the appeal are not in dispute, but, it disputed liability of the insurer to pay compensation jointly and severally along with owner of the offending motor vehicle on the ground that owner of the goods carriage vehicle to be used by gratuitous passenger traveling in such vehicles. It is contended that Insurance Company cannot be held liable to pay compensation to the victim in the accident.

(2.) Learned Advocate on behalf of the respondents contended that the facts that accident had occurred arising out of rashness and negligence of the driver of the offending motor vehicle is not in dispute. Considering that insurer can pay compensation and recover the same from the owner of the offending motor vehicle and/or driver as the case may be by making an appropriate application before the Tribunal when insurer disowned liability to pay compensation on the ground that there was breach of condition of the insurance contract and owner had committed the breach by allowing the gratuitous passengers carrying in the goods carriage without permit to carry such passengers in the goods vehicle.