UNITED INDIA INSURANCE COMPANY LIMITED Vs. KAKI PRABHAKAR

JUDGEMENT

(1.) Kaki Keshava Swamy and his cousin, Kaki Prabhakar, were proceeding on a Scooter, bearing No. AP 28 M 597, towards Ravirala Village of Ranga Reddy District, at 7.30 p.m., on 24.01.2002. A Tractor, bearing No. AAL 9748, owned by M. Rameshwar, and insured with the appellant herein, dashed against the scooter. While Keshava Swamy died of accident, Prabhakar received injuries. The legal representatives of Keshava Swamy filed O.P.No. 744 of 2002 before the Motor Accidents Claims Tribunal-cum-IV Additional Chief Judge, Hyderabad, claiming a sum of Rs. 4,00,000/- , as compensation for the injuries. The Tribunal passed an order, dated 13.08.2004, awarding a sum of Rs. 2,33,220/- and apportioned the same among the claimants therein. Similarly on 16.08.2004, in O.P.No. 1951 of 2002, the Tribunal passed an order awarding a sum of Rs. 56,962/- , to Prabhakar. These two appeals arise out of the orders passed therein.

(2.) Sri E.Venugopal Reddy, Learned Counsel for the appellant, submits that there was no insurance coverage for the tractor as on 24.01.2002. He contends that the insurance policy was taken out on 29.01.2002, but an official of the appellant-company issued the policy, as though it is in force with effect from 24.01.2002. Learned Counsel submits that the Tribunal did not address this vital issue and held the appellant is also liable to pay the compensation. He contends that permission may be accorded to the appellant to proceed against the owner of the vehicle to recover the amount, in case it is required to pay. He submits that the rate of interest awarded by the Tribunal is excessive.

(3.) Learned Counsel for the respondents, and in particular the owner of the vehicle submits that the appellant in its counter filed in the O. Ps., clearly stated that the insurance policy was taken at 10.45 a.m., on 24.01.2002 and that the accident occurred at 7.30 p.m. on that day. They contend that though a plea was raised to the effect that the policy would become operative, on expiry of 24 hours after it was issued, neither any provision of law, nor any decided cases are cited in support thereof.