ORIENTAL INSURANCE COMPANY LTD Vs. RAMJI CHOUDHARY

JUDGEMENT

(1.) SAYEEDA Khatoon Versus Bibi Sayeeda Tahira Nahid 1. This appeal is directed against part of the order dated 7.8.98 passed by the learned 2nd Additional District Judge - cum -Motor Vehicles Accident Claim Tribunal, Kaimur at Bhabhua, in Motor Vehicles Claim Case No. 35/33 of 1994/1996 (Ramji Choudhary and ors. V/s. Pankaj Kumar Singh and ors.), whereby he has allowed the claimants ' application under section 140 of the Motor Vehicles Act, 1988 (hereinafter referred to as 'the Act '), and directed the appellant company to pay interim compensation amounting to Rs. 25,000/ - to the claimants (respondent nos. 1 to 4 herein) on no fault basis. The grievance of the appellants is confined to the limited question that interim compensation should in the facts and circumstances of the present case be equally apportioned between the two iinsurers. The other insurer is National Insurance Company Ltd. (respondent nos. 7 and 8 herein).

(2.) ONE Chirkutia Devi (deceased) was travelling in a bus bearing registration no. BR 24 -P -6621 on 19.12.93, which was insured by the appellant company. The bus collided against a truck bearing registration no. UP 13 -9642 which was insured by respondent nos. 7 and 8 herein. Chirkutia Devi died in the accident. The heirs of the deceased (respondent nos. 1 to 4 herein) filed an application under section 166 of the Act before the Claims Tribunal. The claimants filed an application under section 140 of the Act praying for interim compensation on no -fault basis. The same has been disposed of by the impugned order dated 7.8.98, whereby it has been held held that opposite parties are liable to pay interim compensation to the claimants under section 140 of the Act, and has directed the appellant company to pay the entire amount of interim compensation of Rs. 25,000/ -. As stated hereinabove, the appellants make a grievance only of that part of the order whereby it has been directed to pay entire compensation amount instead of half of it, and respondent nos. 7 and 8 should be directed to pay the balance half.

(3.) COMING to the merits of the case, learned counsel for the appellants submits that it has now been held by various decisions that the owner in the context of section 140 of the Act includes insurer. She relies on the judgment of a learned single Judge of this Court reported in 1997 (1) PLJR 987 (Oriental Insurance Co. Ltd. V/s. Jagdeo Paswan). Learned counsel for respondent nos. 7 and 8 has countered the submission and has gone to the extent of submitting Sayeeda Khatoon Versus Bibi Sayeeda Tahira Nahid that it is the owner alone which can be fastened with the liability of interim compensation in terms of section 140 of the Act. Therefore, in his submission, the impugned order is in the teeth of the provisions of section 140 of the Act. He relies on the judgment of the Supreme Court reported in (1996) 2 SCC 376 (K. Nand Kumar V/s. Managing Director, Thanthal Periyar Transport Corporation).