ORIENTAL INSURANCE CO. LTD Vs. GANGAVARAPUR PADMAWATI

JUDGEMENT

(1.) TAKING exception to the award passed by the Motor Accident Claims Tribunal, Yavatmal, on 9.12.1993 in Motor Accident Claim No. 4 of 1990, Gangavarapur Padmawati v. J. Ramchandra Reddy, whereby the learned Tribunal passed an award for a sum of Rs. 1,35,600/- together with interest at the rate of 12 percent per annum from the date of claim petition, i.e., 10.1.1990 till realisation making the non-applicant Nos. 1 to 3 jointly and severally liable, the appellant, the Oriental Insurance Co. Ltd. (hereinafter referred to as 'the insurer') has filed this appeal under Section 173 of the Motor Vehicles Act, 1988.

(2.) TWO fold contentions have been raised by Mr. D.N. Kukdey, the learned Counsel for the insurer in this appeal, (i) that the liability on the insurer could not have been fastened in respect of the death of employee.br representative of the owner of the goods who was travelling in the goods vehicle alongwith the goods, and (ii) that, in any case, the liability in the present case contractually accepted by the insurer was to the extent of Rs. 10,000/- per passenger and, therefore, the liability of the insurer was only limited to that extent. In support of his submissions, Mr. Kukdey, the learned Counsel for the insurer, placed reliance on the Full Bench decision of the Karnataka High Court in National Insurance Co. Ltd. v. Dundamma 1992 ACJ l(Karnataka) : (1992) ACC 162 (FB) Karnataka.

(3.) THE owner despite service remained ex-parte before the Tribunal. The driver admitted that he was driving the truck bearing No. AHT 7576 at the relevant time, but he denied that he was driving the vehicle rashly and negligently but submitted that the accident took place due to mechanical defect. Insurer also denied the material facts and also set up the defence that on the date of the accident, i.e., 5.10.1989, the deceased was travelling in the goods vehicle for collecting onions in Yavatmal District and he was travelling in the said truck for collection of onions of his master, viz., Palvedi Narsinha Rao. The above truck was insured with the insurer and as per the terms of the policy and premium taken, if carrying non-fare passenger the said truck meets with an accident, then the insurer had covered the risk to the extent of Rs. 10,000/- only for each passenger and, therefore, liability regarding payment of compensation arises against the insurer to the extent of Rs. 10,000/- only.