PAPPU VEERANNA Vs. PAPPU VEERANNA

JUDGEMENT

(1.) This is an appeal preferred jointly by the owner of the vehicle as also the insurance company questioning an award of Rs. 37,500 made by the court of Additional District Judge-cum-Additional Motor Accidents Claims Tribunal, Krishna. The accident occurred on 21/04/1981, at Vijayawada and the respondent who was injured suffered a fracture on his left ankle. The respondent underwent treatment at Vijayawada and also at Madras, but he was, however, left with a permanent disability as he has to limp. On account of the said disability, the respondent who was photographer by profession, suffered detriment and claimed damages. The respondent has a photo studio called Veeranna Studio is also engaged in producing documentary films for private and Government institutions which are exhibit in cinemas and the TV. The respondent claimed a sum of Rs. 74,000 as compensation and the Tribunal below awarded a sum of Rs. 37,500. Against the said award, the owner of the bus as well as the insurance company have preferred this appeal jointly.

(2.) A preliminary objection has been raised by Sri A.V. Parthasarathy of Sri. Y.B. Tata Rao contending that a single appeal by the insurance company as well as the owner of the vehicle is not maintainable inas much as the defences open to each of these appellants are different. For the above said purpose, reliance is placed upon a judgment of a Division Bench of the Allahabad High Court in United India Fire and General Insurance Co. Ltd. v. Gulab Chndra Gupta, [1986] 59 Comp Cas 678, the learned judges therein held that inasmuch as under section 96 (2) of the Motor Vehicles Act read with section 11OD the grounds available to the owner of the vehicles, the appeal is not maintainable jointly by both of them. The learned judges have further held that if the decree does not make the owner of the vehicle pay, he cannot be treated as a "person aggrieved" within the meaning of section 11OD of the Act. This preliminary objection is resisted by learned counsel for the appellants, Sri S.V.R.S. Somayajulu.

(3.) I am of the view that the preliminary objection is not correct and that this appeal jointly preferred by the insurance company as well as by the owner of the vehicle is maintainable. The insurance company is only in the position of an indemnifier to the owner of the vehicle. Unless the owner of the vehicle is made liable, the issuer, being an indemnifier, cannot be made liable. I fail to see how the person primarily liable as well as the person who indemnifies him cannot be said to be "aggrieved persons" at the same time and, if so, why they cannot join together in a single appeal. It may be that the defences open to the indemnifier are statutorily restricted from those available to the erosion principal liable but that does not mean that there is any conflicting or opposing interests between them. Under the Motor Vehicles Act, provision is made to recover the amount from the insurance company up to a particular limit and beyond that, the amount can be recovered from the owner of the vehicle. If the injured person is not able for recover any part of the amount from the insurance company (for some good reason), he can certainly recover it from the owner of the vehicle. The alternative argument that the owner of the vehicle is not an "aggrieved person" at all because his liability is taken over by the insurance company is not correct it will be anomalous to say that the person mainly liable is not an " aggrieved person" merely because the amount is not initially recoverable from him. Even in a case where the quantum of liability of the insurance company exceeds the total amount claimed by the injured person, the position, in my opinion, is not different. The inter se relationship of "indemnifier" and "indemnified" continues and there is no conflicting interest. Further, it may also be the duty of the owner of the vehicle to protect the interests of the "indemnifier" and see that the latter is not unnecessarily mulcted with liability. Merely because the claim in the case is less than the limits applicable to the indemnifier, the owner of the vehicle need not feel absolved of his liability to safeguard the interests of the indemnifier. The mere fact that certain defences open to the owner of the vehicle are not open to the insurance company does not make any difference.