NEW INDIA ASSURANCE CO. LTD Vs. CHINTHALA LAXMI

JUDGEMENT

(1.) CHALLENGING the award dated 21.12.2005 in O.P.No.632 of 2004 passed by the Chairman, M.A.C.T -cum -IV District Judge (FTC., Karimnagar (for short the Tribunal., the New India Assurance Company Limited preferred the instant appeal. The appellant herein is the 3rd respondent before the Tribunal; respondents 1 to 7 in the appeal are claimants; respondent Nos.8 and 9 herein are the first and second respondents and respondent No.10/ APSRTC (hirer of the bus. is the 4th respondent before the Tribunal.

(2.) FACTS in nutshell are thus:

(3.) CHALLENGING the award insofar as fixing liability on Insurance Company jointly and severally along with other respondents, learned counsel for appellant argued that though the bus was insured with appellant/Insurance Company, but the owner of the bus hired the same to APSRTC and at the relevant time of accident, the bus was under the control and possession of APSRTC and driver also belongs to Corporation and as such, the owner had absolutely no control over the vehicle at the time of accident and hence, for all practical purposes APSRTC was the owner of the vehicle. Since no liability can be fastened on the original owner, the question of Insurance Company indemnifying the same does not arise. The Tribunal without considering these aspects, wrongly fastened the liability on Insurance Company also. He thus at the first instance, prayed to exonerate the Insurance Company from the liability and allow the appeal. Learned counsel advanced an alternative argument also. He submitted that in view of Full Bench judgment of our High Court in APSRTC vs. B.Kanakaratnabai holding that mere hiring of bus by the owner to APSRTC would not limit the liability and accountability of the Insurance Company, if this appellate Court declines to agree with the appellants argument, it may dismiss the appeal by confirming the award of the Tribunal. But, while so dismissing, the Court may not exonerate APSRTC from the liability as fixed by the Tribunal jointly on all the respondents since APSRTC has not filed any appeal against the award to exempt it from liability.