Telangana High Court
The National Insurance Co Ltd vs Parveen And 3 Ors on 7 July, 2023
Author: Lalitha Kanneganti
Bench: Lalitha Kanneganti
HONOURABLE SMT. JUSTICE LALITHA KANNEGANTI
M.A.C.M.A.No.513 of 2008
JUDGMENT:
The insurance company has preferred this appeal aggrieved by the award dated 06.01.2007 in O.P.No.875 of 1999 passed by the Motor Accident Claims Tribunal-cum-VI Additional District Judge, Mahabubnagar, questioning their liability.
2. No representation on behalf of the respondents/claimants.
3. Having heard Mr. S. Agasthya Sharma, learned counsel for the insurance company, perused the entire material on record.
4. The claim petition was filed seeking compensation of Rs.10,000/- on account of the injuries sustained by the claimant in the motor vehicle accident that took place on 03.06.1999. The court below has granted compensation of Rs.10,000/- to the claimants against the respondents and directed the insurance company to pay the amount and recover the same from the owner of the vehicle.
5. Learned counsel for the insurance company submitted that the insurance company is not liable to pay the compensation. It is the case of the insurance company that they are not liable to pay the compensation, at the time of accident, the claimants along with others were travelling as gratuitous passengers in the offending vehicle. It is submitted that the court below having discussed law on this subject has observed that the person who boarded the goods vehicle in the mid way with luggage is not covered by the insurance LK, J MACMA_513_2008 2 and they cannot claim the compensation from the insurance company. It is submitted that even the insurance company is not liable to pay the compensation to the gratuitous passengers who travels in a goods vehicle, but, however the court below applying the ratio laid down by the Hon'ble Apex Court in case of M/s. National Insurance Co. Ltd. v. Baljit Kaur and others1, has directed the insurance company to pay the amount and recover the same from the owner of the vehicle.
6. Learned counsel for the insurance company further submitted that the Hon'ble Apex Court has not laid such law that without there being a liability, the insurance company has to pay and recover the same. It is submitted that the Hon'ble Apex Court in Baljit Kaur's case has considered the pay and recover principle which was applied by the court below basing on National Insurance Co. Ltd. v. Swaran Singh2 and the same is reversed by the Hon'ble Apex Court in case of New India Assurance Co. Ltd. v. Asha Rani [2003 (2) SCC 223] as it will cause hardship to the claimants has directed the insurance company to pay and recover the compensation. He submitted that in this case, the award was passed in the year 2007 and the said award is not applicable to the facts of the case. Relying on the policy, he submitted that as on the date of accident, no premium was paid towards the policy. 1
2004 (1) SCALE 124 2 2004(3) SCC 297 LK, J MACMA_513_2008 3
7. It is the case of the claimants that they along with others are labourers and even considering that they are labourers, there is no premium paid towards policy covering the risk of the labourers.
8. Learned counsel for the insurance company submitted that the court below gravely erred in fastening the liability on the insurance company.
9. The contention of the claimants is that he along with others are labourers and even as per the policy, the risk of the labourers was not covered and hence, the insurance company is not liable to pay the compensation and the court below has wrongly applied the ratio laid down by the Hon'ble Apex Court in Baljit Kaur's case.
10. In view of the above, the appeal of the insurance company is allowed. As the award is passed in the year 2007, if any amount was paid by the insurance company and the same was withdrawn by the claimant, the amount shall not be recovered by the insurance company.
Pending miscellaneous petitions, if any, shall stand closed. No order as to costs.
___________________________ LALITHA KANNEGANTI, J Date: 07.07.2023 mmr/gvl LK, J MACMA_513_2008 4 HONOURABLE SMT. JUSTICE LALITHA KANNEGANTI M.A.C.M.A.No.513 of 2008 07.07.2023 mmr/gvl