Having considered rival contentions of both the parties and having regard to the facts and circumstances of the case, the Supreme Court in New India Assurance Co. Ltd. v. Satpal Singh , after examining Section 95 of the old Act and also Section 147 of the new Act, and after considering its judgments in Pushpabai Purshottam Udeshi v. Ranjit Ginning and Pressing Co. 1977 ACJ 343 (SC) and Mallawwa's case, , observed that under the new Act, an insurance policy covering third party risk is not required to exclude gratuitous passengers in a vehicle, no matter that the vehicle is of any type or class. Hence the decisions rendered under the old Act vis-a-vis gratuitous passengers are of no avail while considering the liability of Insurance Company in respect of any accident which occurred or would occur after the new Act came into force.
10. His Lordship Justice N.V. Ramana also referred to a Division Bench judgment of Himachal Pradesh High Court in New India Assurance Co. Ltd. v. Rama Devi and a judgment of Orissa High Court in Jayanti Sahu v. Rama Chandra Behera and a judgment of the Madras High Court in United India Insurance Co. Ltd. v. A. Govindan and a Full Bench judgment of Kerala High Court in Oriental Insurance Co. Ltd. v. Ajaya kumar and took a view that under Section 147(1)(b)(i), even before the amendment by Act 54 of 1994 (with effect from 14.11.1994), the Insurance Company is liable to pay compensation even for death or bodily injury to the owners of goods travelling in a goods vehicle.
10. His Lordship Justice N.V. Ramana also referred to a Division Bench judgment of Himachal Pradesh High Court in New India Assurance Co. Ltd. v. Rama Devi and a judgment of Orissa High Court in Jayanti Sahu v. Rama Chandra Behera and a judgment of the Madras High Court in United India Insurance Co. Ltd. v. A. Govindan and a Full Bench judgment of Kerala High Court in Oriental Insurance Co. Ltd. v. Ajaya kumar and took a view that under Section 147(1)(b)(i), even before the amendment by Act 54 of 1994 (with effect from 14.11.1994), the Insurance Company is liable to pay compensation even for death or bodily injury to the owners of goods travelling in a goods vehicle.
In my considered opinion, when a judgment of the Supreme Court which is binding on the High Court, is referred to a Larger Bench by a subsequent Bench of equal strength, the same does not take away the binding effect of the earlier Apex Court judgment, A reference may be made to the judgments of the Supreme Court in State of Orissa v. Dandasi Sahu and State of Rajasthan v. R.S. Sharma and Co. .
17. Under the Motor Vehicles Act, the claims arising out of death or injury need expeditious disposal. In these matters, the accident occurred in the year 1992. Therefore, the cases will not brook further delay, especially when there is binding principle of law laid down by the Supreme Court.