ANDHAVARAPU KAMARAJU Vs. CHINTADA SAVITRAMMA

JUDGEMENT

(1.) A short point is involved in all these appeals which are being disposed of by this common order. Facts are admitted. An accident occurred on 8.12.1990 at about 3.30 p.m. Some students were travelling in the lorry. Some of them died and some of them received injuries. Claims were filed which were allowed. Appeals being A.A.O. Nos. 1528, 1581, 1529 and 1538 of 1997 were filed by the owner of the vehicle and appeals A.A.O. Nos. 1825, 1922, 1974 and 2267 of 1997 were filed by the insurance company. These appeals were heard by the learned single Judge and he disposed them of by a common order. This order is challenged by way of these Letters Patent Appeals by the owner of the vehicle.

(2.) The case of the insurance company who filed the appeals before the learned single Judge was that the passengers were gratuitous and the vehicle had been used contrary to the terms of the contract therefore they were not liable. The Tribunal had held the insurance company liable to the extent of Rs. 25,000. The learned single Judge relying on various judgments of this High Court and of the Supreme Court allowed the appeals filed by the insurance company, i.e., A.A.O. Nos. 1825, 1922, 1974 and 2267 of 1997 and set aside the award fastening the liability of payment of Rs. 25,000 under no fault liability and directed the owner to pay the full compensation amount. The appeals filed by the owner of the vehicle were dismissed. Against this order the present appeals have been filed.

(3.) The learned counsel for the appellant submits that although there was some confusion earlier with regard to the liability of the insurance company with respect to gratuitous passengers it has now been settled by the Apex Court in a latest judgment and the insurance company under new Motor Vehicles Act is liable to pay compensation in full even with respect to gratuitous passengers. He submits that the judgments referred by the learned single Judge should not have been relied upon in view of the latest judgment of the Apex Court in New India Assurance Co. Ltd. v. Satpal Singh, 2000 ACJ 1 (SC). In this judgment the Supreme Court considered the impact of the earlier judgments which were relied upon by the learned single Judge, namely, Mallawwa v. Oriental Insurance Co. Ltd., 1999 ACJ 1 (SC).