STATE OF HIMACHAL PRADESH Vs. DEEPA DEVI

JUDGEMENT

(1.) An interesting question has been raised in this appeal- Whether the insurance company is liable to pay compensation when an accident occurs and the insured vehicle is not in the control of the owner but has been requisitioned by the government.

(2.) The facts necessary for the decision of this case are that a Maruti Gypsy bearing No. HIS 6095 was owned by Nathpa Jhakri Power Corporation (hereinafter referred to as 'NJPC'). It was insured with National Insurance Co. Ltd. The said vehicle was requisitioned by the government for election purposes. During the period when this vehicle was requisitioned and was being used by the SDM, Rampur the vehicle struck against one Satish Kumar who sustained injuries and died. The parents of Satish Kumar filed a claim for compensation. Claims Tribunal granted compensation of Rs. 1,07,880 in favour of L.Rs. Tribunal exonerated the insurance company and held the State Government liable to pay the compensation.

(3.) Mr. J.S. Guleria, learned Law Officer app earing on behalf of the appellant State has argued that the award of the M.A.C.T. in so far as it exonerates the insurance company and fastens the appellant with the liability to pay compensation is against law. He submits that the insurance company has wrongly been exonerated from its liability to pay compensation. The fact that the vehicle was requisitioned by the government would not make the government the owner of the vehicle. He also urges that in terms of the policy and the provisions of the Motor Vehicles Act the insurance company is liable to settle the claim.