NATIONAL INSURANCE CO LTD Vs. MADAPATI GANGADHAR

JUDGEMENT

(1.) The only question involved in this Appeal is in regard to the liability of the insurance company for payment of the amount awarded towards compensation in a claim arising out of a motor accident.

(2.) The learned single Judge, while awarding the compensation and fixing the liability, followed the decision in New India Assurance Company v. Satpal Singh and others, 2000 1 SCC 237 and fixed the liability on the insurance company directing to pay compensation jointly and severally along with the owner of the vehicle. However, the said decision is no longer res integra and subsequently, in New India Assurance Co. Ltd v. Asha Rani, 2003 2 SCC 223, the decision in Satpal Singh's case was overruled and the principles laid therein were set at naught.

(3.) In view of the same, the Letters Patent Appeal is allowed and the direction of the learned single Judge to the insurance company to pay compensation amount jointly and severally is set aside. Accordingly, the insurance company is held to be not liable. However, it is made clear that if any amounts are already paid by the insurance company to the claimants, the same should not be recovered. As far as the balance amount is concerned, it is open to the claimants to recover the same from the owner of the vehicle. No order as to costs.