Allahabad High Court
United India Insurance Co. Ltd. Pili ... vs Smt. Vimla Devi And 4 Others on 26 February, 2020
Author: Vivek Agarwal
Bench: Vivek Agarwal
HIGH COURT OF JUDICATURE AT ALLAHABAD ?Court No. - 53 Case :- FIRST APPEAL FROM ORDER DEFECTIVE No. - 226 of 2016 Appellant :- United India Insurance Co. Ltd. Pili Kothi Banda Respondent :- Smt. Vimla Devi And 4 Others Counsel for Appellant :- Amaresh Sinha Counsel for Respondent :- Sant Ram Sharma Hon'ble Vivek Agarwal,J.
Heard Sri Amresh Sinha, learned counsel for the appellant and Sri Sant Ram Sharma, learned counsel for the respondents.
There is a delay of 9 days in filing the appeal. For the reasons stated in the memo of application duly supported by an affidavit, the delay is condoned. The delay condonation application is accordingly allowed.
Learned counsel for the appellant submits that this appeal has been filed by the Insurance Company being aggrieved by award dated 9.10.2015 passed by learned Motor Accident Claims Tribunal/Additional District Judge, Court No. 4, Banda in M.A.C.T. Case No. 123/70/2013 directing the Insurance Company to pay compensation as assessed by the learned Claims Tribunal alongwith interest at the rate of 7%.
Counsel for the appellant submits that in the evidence of Claim witness PW-2, it has come on record that the vehicle which was insured with the United India Insurance Co. Ltd bearing Indica Car No. UP-90 H-0638 was being driven in violation of terms and conditions of the policy in asmuch as, it was insured as a private vehicle with limited use for personal, domestic, and own business purpose whereas vehicle was being used in violation of policy condition as commercial vehicle as can be seen from the evidence of PW-2 who has categorically stated in his deposition that he had paid fare of Rs. 70/- for his travel from Maihar to Banda. In view of such evidence of PW-2 namely Surendra Kumar Soni, S/o Bhaiya Lal Soni, who was also traveling in the same vehicle in which Raja Bhaiya @ Laxmi Prasad was travelling and died because of the accident, learned Claims Tribunal erred in not accepting the plea of the Insurance Company and has arbitrarily allowed the claim against the Insurance Company whereas Insurance Company is entitled to be exonerated. In this regard reliance has been place on the judgment of Calcutta High Court in case of New India Assurance Company Ltd Vs. Naba Kumar Mondal and another 2005 (2) TAC 557, Calcutta wherein Insurance Company has been exonerated from payment of compensation and the award fastening liability on the Insurance Company was set aside. On the other hand, counsel for the appellant supports the award.
However, looking to the facts that the insured vehicle was used in violation of the policy conditions and the provisions contained in Section 147 of the Motor Vehicles Act, 1988 therefore there is breach of policy conditions in terms of the provisions contained in Section 149 (2) (A) (i) (a), it will be appropriate to direct the Insurance Company to pay the award to the claimants and recover the same from the owner of the offending motor vehicle in the light of law laid down by the Supreme Court in case of Munuara Khatun and others Vs. Rajesh Kumar Singh and others as reported in 2017(2) TAC 5 (SC).
Accordingly, in above terms, the appeal is allowed in part and is disposed of.
Order Date :- 26.2.2020 S.K.S.