NEW INDIA ASSURANCE CO. LTD. Vs. SAVITRI DEVI

JUDGEMENT

(1.) The present appeal by New India Assurance Company, through its Divisional Manager, Shimla, is directed against the award dated 4.7.1996 of Motor Accident Claims Tribunal, Shimla whereby the entire compensation amount of Rs. 2,57,120/- awarded to the dependents of late Sh. Netar Singh, who died in an accident, has been ordered to be paid by it (the Appellant).

(2.) Admitted facts are that deceased Netar Singh, for whose death the compensation has been awarded was on board truck No. HPS 6371, which is a goods carrier. He was carrying some defective parts of his own vehicle for repair when the accident took place. In the accident he died. The truck, in question was insured with the Appellant, i.e. New India Assurance Company. The plea taken by the Appellant before the Tribunal was that the deceased was traveling by truck unauthorisedly as a gratuitous passenger and hence it (the Appellant) was not liable to pay any compensation. The plea did not find favour with the learned Tribunal and consequently, the Tribunal after recording the findings that the cause of the accident was rash/negligent driving of the truck, by its driver and that Netar Singh died in that accident, awarded a sum of Rs. 2,57,120/-, as compensation with interest at the rate of 12% per annum and directed the present Appellant, in the capacity of insurer, to pay the entire amount of compensation together with interest.

(3.) Appellant's contention is that Section 147 of the Motor Vehicles Act, 1988, as it stood prior to the amendment of 1994, does not provide for the compulsory insurance, in respect of the owner of the goods, being carried in a goods vehicle, and hence it (the Appellant) is not liable to pay the compensation money. The order of the Tribunal is alleged to be illegal to the extent it directs the Appellant to pay the compensation together with the interest.