NEW INDIA ASSURANCE COMPANY LIMITED Vs. HANJA DEVI

JUDGEMENT

(1.) THIS appeal is directed against the judgment and award dated 29.5.2001 passed by the Motor Accident Claims Tribunal, Merta ('the Tribunal'), whereby for death of one Asu Das, the Tribunal has awarded a sum of Rs. 2,17,000/ - alongwith interest @ 9% p.a. from the date of filing application i.e. 23.2.1998. Brief facts of the case may be noticed thus : Bus RJ -19P - 2155, which was being driven by Bhanwar Singh, owned by Umaid Singh and was on contract with Rajasthan State Road Transport Corporation ('RSRTC'), met with an accident with Asu Das on 27.9.1997, aged about 35 years, who was riding a motor -cycle RJ -19 -8M -2451 from Merta City to Pipar City, resulting in the death of said Asu Das.

(2.) AN application for compensation was filed by the legal representatives of deceased Asu Das claiming compensation to the tune of Rs. 39,32,000/ -. While filing reply to the application, the Insurer -appellant contended that the bus was insured for the period 9.10.1996 to 8.10.1997 and denied its liability on account of the fact that the bus was on contract with RSRTC and therefore, the responsibility was that of the said RSRTC only. The Tribunal assessed the compensation at Rs. 2,17,000/ - and while deciding the issue relating to the liability, it came to the conclusion that the owner as well as the contractor are both responsible for payment of compensation and therefore, the Insurance Company cannot escape from the liability to make payment of compensation and consequently, held the driver -Bhanwar Singh, owner -Umaid Singh, RSRTC -the contractor and the insurer ­ appellant liable for payment of compensation. It is submitted by learned counsel for the appellant that as the vehicle was on contract with RSRTC; the appellant had insured the owner i.e. Umaid Singh and as Umaid Singh is not vicariously liable for the actions of Bhanwar Singh, the driver, who was driving the vehicle under instructions from RSRTC at the relevant time, the Insurance Company cannot be held liable for payment of compensation. Reliance was placed on judgment of the Hon'ble Supreme Court in RSRTC vs. Kailash Nath Kothari : (1997) 7 SCC 481.

(3.) I have considered the rival submissions. The Hon'ble Supreme Court in the case of Kulsum (supra) while considering the judgment in the case of Kailash Nath Kothari (supra), inter -alia, held as under: -