KANHAI RAI Vs. DHARAMPAL

JUDGEMENT

(1.) The appellants have filed the present appeal under Clause 10 of the Letters Patent of the Patna High Court against the order dated 22-8-2000, passed by a learned single Judge, by which he has allowed the appeal (M.A. No. 494 of 1999) filed by the New India Assurance Co. Ltd. (respondent herein) against the order dated 25-6-1999 passed by the Motor Accidents Claims Tribunal (for short 'the Tribunal') under Section 140 of the Motor Vehicles Act 1988, (hereinafter referred to as 'the Act') directing it to pay the interim compensation on no fault basis and further held that the Insurance Company is not liable to pay the interim compensation under the aforesaid section and it is the owner alone who is liable to pay the same.

(2.) The facts giving rise to the present appeal lie in a narrow compass. Respondent Dharampal owned a truck bearing registration No. DL-1 G-A/9319. On 18-8-1997, he took an Insurance Policy from respondent No. 2 in terms of the provisions of the Act, which was valid from 18-8-1987 to 17-8-1998. While the said vehicle was coming from Muzaffarpur side on 28-6-1998, it dashed against Sukhiya Devi, wife of appellant No. 1 and mother of appellants Nos. 2 and 3, resident of village Fakuli P. S. Kurhani, District Muzaffarpur, as a result of which she died. The vehicle was being driven rashly and negligently in a very high speed by the driver thereof. Her husband and other heirs, who are appellants before this Court, filed a claim case being Claim Case No. 93 of 1998 before the Tribunal under Section 166 of the Act against the owner and insurer of the vehicle. In the said claim case, the Insurance Company (respondent No. 2) also appeared. In the meantime, the appellants filed a petition under Section 140 of the Act claiming compensation on no-fault basis. The Tribunal after hearing the petitioner directed for payment of Rs. 50,000/- on the principle of no-fault to the appellants. The respondent-Insurance Company filed an appeal before the learned Single Judge, who, as stated above, held that the liability to pay interim compensation under Section 140 of the Act is of the owner and not of the respondent Insurance Company.

(3.) Learned counsel for the appellants submitted that though in terms of Section 140 of the Act, in case of death or permanent disablement of a person having resulted from an accident arising and of the use of a motor vehicle, owner shall be liable to pay compensation in respect of such death or disablement, but the conjoint reading of the said provision and the provisions contained in Chapter XI of the Act, which deals with the insurance of motor vehicles against the third party risks, clearly shows that the liability in relation to death of or bodily injury to any person is covered by the Insurance Policy includes the liability under Section 140 of the Act also and as such the owner or the insurer or both can be fastened with the liability to pay the interim compensation under Section 140 of the Act.