High Court Jharkhand High Court

United India Insurance Co Ltd vs Sukhni Devi & Ors on 20 March, 2009

Jharkhand High Court
United India Insurance Co Ltd vs Sukhni Devi & Ors on 20 March, 2009
               IN THE HIGH COURT OF JHARKHAND AT RANCHI
                              M.A. No. 41 of 2008
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United India Insurance Co. Ltd. … Appellant

-Versus-

             Sukhni Mahto & ors                                    Respondents
                                       ----
                                      with
                          Cross Objection No.8 of 2009
           Sanatan Hansda Manjhi @ Sanatan Hansda...             Cross Objector
                                    -Versus-
            M/s United India Insurance Co.Ltd. & ors.... ....       Respondents
                                       ----
           CORAM :        HON'BLE MR. JUSTICE M.Y.EQBAL
                           HON'BLE MRS. JUSTICE JAYA ROY
                                       ----
             For the Appellant            :    Mr. Alok Lal
             For the Respondents          :    M/s. Jai Prakash & P.Chatterjee
                                       ----
             Date of CAV 18.3.2009       Date of pronouncement: 20.3.2009
                                       ----
8- 20.3.2009        This appeal by the appellant-Insurance Company is directed

against the judgment and award dated 29th September, 2007

passed by Motor Accident Claims Tribunal, Dhanbad in Title (M.V)

Suit No.169/2004, whereby he has awarded compensation of

Rs.2,49,500/- and directed the appellant-Insurance Company to

pay the said amount.

2. The claimants-respondents filed the aforementioned case for

grant of compensation on account of death of Ramnath Mahto in a

motor vehicle accident. According to the claimants on the relevant

date of accident the deceased was feeling pain in abdomen and he

was going for his treatment along with his brother and other

villagers at Bokaro Hospital by a Ambassador Car No.JH 10D 2510.

The said ambassador car on the way dashed against a tree

because of rash and negligent driving by the driver of the car, as a

result of which the deceased Ramnath Mahto died on the spot

inside the car.

3. The defendant-respondent, who is the owner of he vehicle,

fled written statement stating that the car was insured with the

appellant-United India Insurance Company and, therefore, the
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owner has no liability to pay the compensation amount rather the

insurance company is liable to pay compensation, if awarded by the

tribunal.

4. On the other hand, the appellant-Insurance Company

contested the case by filing written statement stating inter alia that

at the relevant time the ambassador car was insured as a private

vehicle but the same was used as a commercial vehicle inasmuch

as the deceased was traveiling in the said ambassador car on

payment of hire. The insurance company is, therefore, not liable to

pay compensation.

5. The Tribunal, on the basis of pleadings of the parties,

framed the following issues:

“1) Is the suit, as framed, maintainable?

2) Whether the deceased Ram Nath Mahato died
due to rash and negligent driving of the vehicle in
question having registration No.JH-10D-2510 on P.O.
at the time of the occurrence?

3) Whether the claimants are entitled to the
compensation amount as claimed?

6. The Tribunal held that the deceased died due to rash and

negligent driving of he vehicle in question at the relevant time and

the driver had valid and effective licence and, therefore, the

insurance company is liable to pay compensation.

7. Mr. Alok Lal, learned counsel appearing for the appellant,

assailed the impugned judgment and award as being illegal and

wholly without jurisdiction. Learned counsel submitted that

admitted case of the claimants was that the vehicle was taken on

hire on payment of Rs.1000/- from the owner of the car and the

same has been substantiated by evidence. In spite of that the

tribunal neither framed any issue nor recorded any finding with

regard to liability of the insurance company . The tribunal simply

held that since the vehicle was insured, the insurance company is
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liable to pay compensation. We find force in the submission of the

learned counsel.

8. The claimants filed documentary evidence including the FIR,

Ext.1, which was lodged by the brother of the deceased. In the FIR

it was very specifically mentioned that ambassador car was taken

on hire for going to Bokaro hospital. In evidence PW 1 , widow of

the deceased, deposed that the ambassador car was taken on hire

on payment of Rs.1000/-. The insurance company in para 11 of he

written statement took a specific defence that at the relevant time

the vehicle was used as a commercial vehicle although it was

insured as a private car and, therefore, the insurance company has

no liability. Surprisingly, the owner of the vehicle in his written

statement has not denied the assertion made by the claimants as

also the insurance company that the vehicle ws taken on hire by

the claimants. In spite of that the tribunal has neither framed any

issue nor recorded any finding with regard to liability of the

insurance company. Simply the tribunal held that the deceased died

due to rash and negligent driving of the vehicle in question and the

driver has a valid and effective licence. So the insurance company

is liable to pay compensation. In our considered opinion, the

finding arrived at by the Tribunal is absolutely erroneous in law.

9. As noticed above, the vehicle was taken on hire by the

claimants for going to Bokaro hospital and on the way the vehicle

met with an accident. Admittedly, the vehicle was insured as a

private car and not as a commercial vehicle. Hence the insurance

company has no liability for payment of compensation.

10. Hence, this appeal is allowed and the finding of the tribunal

holding the insurance company liable to pay compensation is set

aside. It is held that the respondent-owner of the vehicle is liable to

pay the compensation amount assessed by the Tribunal.
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11. In the result, this appeal is allowed with the aforesaid

observation and direction and the cross objection filed by the

owner of the vehicle is disallowed.




                                                        (M.Y. Eqbal, J. )



             Jaya Roy,J:                                  (Jaya Roy,J.)

Pandey/AFR