UNITED INDIA INSURANCE CO LTD Vs. MANGALIYA

JUDGEMENT

(1.) This order shall also govern disposal of M.A. No. 422 of 2000 (United India Insurance Co. Ltd. v. Javitri), M.A. No. 424 of 2000 (United India Insurance Co. Ltd. v. Rajawati), M.A. No. 425 of 2000 (United India Insurance Co. Ltd. v. Katori), M.A. No. 426 of 2000 (United India Insurance Co. Ltd. v. Ratan Singh), M.A. No. 427 of 2000 (United India Insurance Co. Ltd, v. Veerawati), M.A. No. 428 of 2000 (United India Insurance Co. Ltd. v. Meena), M.A. No. 430 of 2000 (United India Insurance Co. Ltd. v. Sudama Bai), M.A. No. 468 of 2000 (National Insurance Co. Ltd. v. Rajabeti), M.A. No. 469 of 2000 (National Insurance Co. Ltd. v. Meena), M.A. No. 470 of 2000 (National Insurance Co. Ltd. v. Mohan Bai), M.A. No. 471 of 2000 (National Insurance Co. Ltd. v. Veeramati Bai), M.A. No. 472 of 2000 (National Insurance Co. Ltd. v. Ratan Singh), M.A. No. 473 of 2000 (National Insurance Co. Ltd. v. Katori), M.A No. 474 of 2000 (National Insurance Co. Ltd. v. Savitri) and M.A. No. 475 of 2000 (National Insurance Co. Ltd. v, Sudama Bai). All the aforesaid appeals under section 173 of the Motor Vehicles Act, 1988 (hereinafter for short referred to as 'the Act') arise out of a common award dated 22.3.2000 passed under section 168 of the Act by the First Additional Motor Accidents Claims Tribunal, Morena (for short 'the Tribunal'), directing payment of compensation of Rs. 1,07,000 in Claim Case No. 39 of 1998 (old Claim Case No. 62 of 1991) on the death of the deceased Suresh Chand; Rs. 57,000 in the Claim Case No. 42 of 1998 (old Claim Case No. 58 of 1991) on the death of the deceased Babulal; Rs. 1,35,000 in Claim Case No. 43 of 1998 (old Claim Case No. 60 of 1991) on the death of Dinesh alias Sobaran; Rs. 57,000 in Claim Case No. 44 of 1998 (old Claim Case No. 60 of 1991) on the death of deceased Mata Prasad alias Matadin; Rs. 1,03,000 in Claim Case No. 45 of 1998 (the old Claim Case No. 65 of 1991) on the death of deceased Munnalal; Rs. 1,33,000 in Claim Case No. 46 of 1998 (old Claim Case No. 64 of 1991) on the death of the deceased Gopal; Rs. 55,000 in Claim Case No. 47 of 1998 (old Claim Case No. 59 of 1991) on the death of deceased Brijendra Singh and Rs. 1,47,000 in Claim Case No. 69 of 1999 (old Claim Case No. 72 of 1991) on the death of the deceased Gambhir Singh, in respect of 8 cases of death.

(2.) Facts giving rise to these appeals are thus: On 8.8.1991 at about 5.30 p.m., the deceased and the injured persons were travelling as passengers in Tempo No. MPG 9947, which was going from Morena to Kadhiyahar on Morena-Ambah Road; truck No. CPW 7506, owned by Agrawal Construction Company, Morena, respondent No. 9, driven by one Lochan Singh, was coming from opposite direction, which dashed against the said Tempo causing severe multiple injuries to 16 passengers travelling in Tempo. Out of 16 passengers, 10 died as a result of the said accident. The legal representatives of the deceased persons and three injured persons presented 12 separate claim applications under section 166 of the Act before the Tribunal against owner, driver and the insurer of the truck. The appellant and National Insurance Co. Ltd., respondent No. 11 (for short 'NICO'), were impleaded as insurers of the truck. The owner of the truck claimed indemnity because of insurance of the vehicle (truck). The appellant insurance company in reply to the claim petition stated that truck No. CPW 7506 was not insured with the company; the cover note covering the risk was void from very inception, as the insured-owner gave the cheque No. 974397 dated 25.6.1991 of Rs. 5,574, Exh. D6, towards the premium of insurance of the truck, of which a receipt, Exh. D7 and cover note, Exh. P17 were issued. The cheque was sent for collection and encashment by the State Bank of Indore, Morena Branch to UCO Bank, Noorabad Branch, which returned the cheque to the State Bank of Indore vide their memo No. 5891 dated 5.8.1991, Exh. D9, with the remark "jis seema tak ki vyavastha ki gayi hai us se adhik". On receipt of it, the appellant insurance company sent a letter dated 8.8.1991, Exh. D10, to the insured regarding dishonour of the cheque, informing that in view of the non-payment of insurance premium, cover note issued stands cancelled from its inception and, consequently, receipt No. 18219 issued to the owner-insured for payment as also the acceptance advice stand cancelled. This was delivered to the insured on 12.8.1991 as is evident from the letter dated 3.9.1991, Exh. P13, issued by the postal authorities. In between the owner also got the vehicle insured with NICO for the period from 8.8.1991 to 7.8.1992 after making payment of premium of Rs. 5,574 of which NICO issued policy No. 0303706 of 1991. As per cover note dated 8.8.1991, Exh. D5, the effective date and time of commencement of insurance was 8.8.1991 at 4 p.m. On 9.8.1991, the owner Umesh Agrawal for insured Agrawal Construction Company applied vide Exh. D1 to NICO that as the vehicle was insured from 25.6.1991 to 24.6.1992 with the appellant United India Insurance Co. Ltd., the amount of premium so paid be returned. In response to the application, NICO refunded the amount vide Exh. D2, dated 12.8.1991 stating thus:

(3.) The Tribunal after appreciating the evidence on record and after hearing parties passed the impugned award and held that due to rash and negligent driving of truck bearing registration No. CPW 7506, the accident occurred and on the date of accident, i.e., on 8.8.1991, the offending vehicle was insured by appellant insurance company as well as by NICO, respondent No. 11 and, therefore, both the insurance companies are liable to pay the amount of compensation and directed that both the insurance companies as well as the owner and the driver of the offending vehicle are jointly and severally liable to pay the amount of compensation and further directed to deposit the amount within a period of 30 days from the date of award along with interest at the rate of 12 per cent per annum from the date of application till its realisation.