NEW INDIA ASSURANCE CO LTD Vs. PALAMONI SURESH

JUDGEMENT

(1.) This appeal filed by the New India Assurance Company Limited arises out of award dated 06-11-2006 in M.V.O.P. No. 1665 of 2004 on the file of the Motor Accidents Claims Tribunal-cum-X Additional Chief Judge (Fast Track Court), City Civil Court, Hyderabad (for short, "the Tribunal").

(2.) The appellant filed this appeal feeling aggrieved by the abovementioned award, whereby the Tribunal fixed joint and several liability on the appellant along with respondent No. 2, owner of the vehicle, for payment of Rs. 1,49,250/- along with interest @ 7.5% per annum assessed for the injuries sustained by respondent No. 1. For disposal of the appeal, it is not necessary to refer in detail to the manner in which the accident has occurred. It will suffice to note that respondent No. 1 was travelling in jeep bearing No. ADF 3391 owned by respondent No. 2 and insured with the appellant from Bhongir to Raipole Village along with driver of the jeep. In course of journey, the driver hit the culvert causing injuries to respondent No. 1. The said jeep is covered by insurance policy with the appellant. On this ground, the Tribunal held that the appellant is jointly and severally liable for payment of compensation along with the owner of the jeep.

(3.) At the hearing, Sri P. Bhanu Prakash, learned Counsel for the appellant confined his argument to that part of the award, whereby the appellant has been made liable for payment of compensation along with the owner of the jeep. According to him, the appellant is liable to pay compensation in respect of the accidents involving third parties according to the provisions of the Motor Vehicles Act, 1988 (for short, "the Act") and the terms of the policy and that neither under the Act nor under the terms of the policy, respondent No. 1, who was neither the owner nor driver, is not entitled to make any claim for compensation against the appellant. The learned Counsel placed reliance on the judgment of the Supreme Court in United India Insurance Co. Ltd., Shimla v. Tilak Singh and Ors., 2006 4 SCJ 596 in support of his submission.