NATIONAL INSURANCE CO LTD Vs. CHANDRA DEVI

JUDGEMENT

(1.) Since the common question of law is involved for adjudication in these two appeals, both are being disposed of by this common judgment.

(2.) Both the appeals have been filed by the insurance companies appellants under section 173 of Motor Vehicles Act, 1988 ('1988 Act', for short) against the awards passed by Motor Accidents Claims Tribunals awarding compensation in favour of the claimants-respondents and against the appellants insurance companies. Whereas in F.A.O. (MVA) No. 275 of 1993 award dated 22.7.1993 passed in M.A.C. Case No. 4-S/2 of 1990 by the Motor Accidents Claims Tribunal, Shimla, is under challenge, in F.A.O. (MVA) No. 156 of 1993, award dated 14.1.1999 passed in M.A.C.T. No. 91-S/2 of 1993 by Motor Accidents Claims Tribunal (II), Shimla, is under challenge.

(3.) In both the cases the deceased were travelling in trucks and in both the cases they, on the own showing of the claimants- respondents, were travelling in the trucks as owners of the goods being carried in the respective trucks. In both the cases the accidents occurred after July, 1989, i.e., the date of the enforcement of 1988 Act and before 1994, i.e., the date of amendment of section 147 of 1988 Act. Whereas in F.A.O. (MVA) No. 275 of 1993 the accident in question occurred on 12.8.1989, in F.A.O. (MVA) No. 156 of 1999, the accident occurred on 9.8.1993. In both the cases the appellants insurance companies had taken specific plea before the Motor Accidents Claims Tribunals that since the deceased were travelling as passengers in trucks and since this amounted to violation of the policy conditions, in terms of section 147 of the 1988 Act, appellants insurance companies were not liable to indemnify the insured-owners of the trucks, nor were they liable to pay the award amounts.