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United India Insurance Co Ltd vs Bhaijibhai Chaganbhai Vasava & 8 Defendants

High Court Of Gujarat|19 April, 2012
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JUDGMENT / ORDER

By way of filing this appeal under Section 173 of the Motor Vehicles Act, 1986 the appellant – original opponent No.3 has challenged the judgment and award dated 20th April 2005 passed by the learned Motor Accident Claims Tribunal (Aux), Bharuch in MAC Petition No.182 of 1996 whereby the Tribunal has partly allowed the claim petition. 2. The short facts of the present appeal are that deceased Ganpatbhai was travelling on tractor bearing No.GJ.16 C 8953, which was being driven by one Laghubhai Saraghbhai on 4th January 1996. They were returning from the agricultural fields and at about 8.30 PM. The said tractor met with accident due to which Ganpatbhai had sustained serious injuries and died on the spot. The claimants have filed claim petition claiming compensation of Rs.3.93 lakhs. The Tribunal has partly allowed the said appeal by awarding Rs.3,11,900 along with interest at the rate of 9% per annum to the claimants to be recovered from all the opponents jointly and severally.
3 Learned counsel for the appellant – insurance company has submitted that the deceased was an unauthorised passenger in the goods carriage and therefore the liability cannot be fastened on the appellant-insurance company. Learned counsel for the appellant has relied upon the decision of the Apex Court in the case of National Insurance Company Ltd. v. Savitri Devi & Others, reported in 2012 (4) SCALE 111.
4 Learned counsel for the respondent has supported the judgment and order of the Tribunal and submitted that no interference is warranted.
5. Heard learned counsel for the parties and perused the documents on record. It is not in dispute that the claimants have travelled in the goods vehicle and use of the goods vehicle for carrying passengers is prohibited and therefore the insurance company was not liable to pay the compensation. In view of the aforesaid discussion, the insurance company is not liable to pay the compensation to the claimant.
6. The Tribunal has failed to consider that there is a clear breach of the Policy and the vehicle which was registered as a private vehicle was used for carrying the passengers for hire and reward. In light of the aforesaid discussion, the impugned judgment and orders passed by the Tribunal cannot be sustained. The same are hereby set aside and quashed. No liability can be fastened on the appellant insurance company. The appeals of the appellant are allowed to this extent. However, it is clarified that if any amount has already been paid by the Insurance Company, it shall not be permissible for it to recover the same from the claimants. It is also clarified that if the claimants are entitled to recover the balance amount of the compensation awarded to them, they can recover the same from the estate of the owner.
(K.S.Jhaveri, J.) *mohd
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Title

United India Insurance Co Ltd vs Bhaijibhai Chaganbhai Vasava & 8 Defendants

Court

High Court Of Gujarat

JudgmentDate
19 April, 2012
Judges
  • Ks Jhaveri
Advocates
  • Mr Rajni H Mehta