The National Insurance Company ... vs Balveer & Ors.
2023 Latest Caselaw 4454 MP

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                             IN THE HIGH COURT OF MADHYA PRADESH
                                                       AT GWALIOR
                                                            BEFORE
                                      HON'BLE SMT. JUSTICE SUNITA YADAV
                                              ON THE 21st OF MARCH, 2023

                                              MISC. APPEAL No. 549 of 2004

                          BETWEEN:-
                          THE NATIONAL INSURANCE COMPANY LTD.
                          THROUGH ITS DIVISIONAL MANAGER, DIVISION
                          OFFICE: JAYENDRAGANJ, GWALIOR (MADHYA
                          PRADESH)
                                                                                       .....APPELLANT
                          (BY MR. R.V.SHARMA - ADVOCATE)

                          AND
                          1. BALVEER S/O RAM VEER, AGED 22 YEARS
                             KU SEEMA D/O RAM VEER MINOR THROUGH
                             GUARDIAN MOTHER RAM WATI W/O RAM
                          2. VEER, AGED ABOUT 15 YEARS, BADHAPURA
                             JAKHONA TEHSIL AND DIST MORENA (MADHYA
                             PRADESH)
                             RAM WATI W/O RAM VEER, AGED ABOUT 50
                          3. YEARS, BADHAPURA JAKHONA TEHSIL AND
                             DIST MORENA (MADHYA PRADESH)
                             MANOJ KUMAR GUPTA S/O SHRI RAM NIWAS
                          4. GUPTA PORSA ROAD AMBAH DIST MORENA
                             (MADHYA PRADESH)
                             NAZIR HUSSEIN S/O GAFFAR KHAN BEHIND
                          5. CHAMBAL COLONY AMBAH DIST MORENA
                             (MADHYA PRADESH)
                                                                                   .....RESPONDENTS
                          (NONE FOR THE RESPONDENTS)
                          ---------------------------------------------------------------------------------

                          This appeal coming on for hearing this day, the court passed the




Signature Not Verified
Signed by: ALOK KUMAR
Signing time: 24-Mar-23
1:17:46 PM
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                          following:

                                                     JUDGMENT

Present miscellaneous appeal has been filed against the award

dated 24.3.2004 passed in Claim Case No. 20/2003 (old Claim Case

No.113/2001) by First Additional Motor Accident Claims Tribunal,

Morena.

The facts in brief to decide this appeal are that respondents

No. 1 to 3 / claimants filed a claim petition under Section 166 of

Motor Vehicle Act claiming compensation for the damages occurred

to their tractor and trolley bearing registration No. MP06-JA-3060

and MP06-JA-3122 respectively in a road-traffic accident involving

truck bearing registration No. MP06-E-2149 alleging therein that the

at the time of said accident, the price of the tractor was

Rs.2,99,800/- and price of the trolley was Rs.10,715/-.

Respondent No. 4 - owner of the offending truck filed its

reply and denied all the allegations mentioned in the claim petition.

Respondent No.5 - driver of the offending truck did not

appear before the learned claims tribunal and was proceeded ex-

parte.

Appellant - insurance company filed its reply and denied all

Signature Not Verified Signed by: ALOK KUMAR Signing time: 24-Mar-23 1:17:46 PM

the allegations mentioned in the claim petition.

Learned claims tribunal framed issues and after recording the

evidence of both the parties awarded compensation against the

appellant to the tune of Rs.3,10,515/- with interest @ 9% P.A. from

the date of filing of the claim petition til payment.

Learned counsel for the appellant argued that the impugned

award of learned claims tribunal is illegal and contrary to law, facts

and material available on record. Learned claims tribunal has not

considered the documentary as well as oral evidence minutely at the

time of passing of the final award. Respondents No. 1 to 3 /

claimants have not proved the value of the said tractor by adducing

any evidence, however, learned claims tribunal has passed the award

in favour of respondents / claimants. Thus, the findings of learned

claims tribunal is without jurisdiction, illegal, perverse and against

the law and deserves to be set aside. It is further argued that the

petition filed by the respondents / claimants for damages is not

maintainable because the petition was filed under Section 166 of

Motor Vehicle Act and the liability of insurance company is only for

the purpose of indemnifying the insured against the liability incurred

towards third party, however, in the present case, claim in respect to

Signature Not Verified Signed by: ALOK KUMAR Signing time: 24-Mar-23 1:17:46 PM

damages of the tractor was awarded, which is against the settled

principle of law. Hence, he prayed to allow the appeal and dismiss

the impugned award.

Heard and perused the available record.

The provision u/S.147 of the Motor Vehicle Act, reads as

below :-

147. Requirements of policies and limits of liability. -- (1)In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which--

(a)is issued by a person who is an authorised insurer; and

(b)insures the person or classes of persons specified in the policy to the extent specified in sub-section (2)--

(i)against any liability which may be incurred by him in respect of the death of or bodily [injury to any person, including owner of the goods or his authorised representative carried in the vehicle] or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place;

(ii)against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place:

The Apex Court in the case of New India Assurance Company

Limited v. Prabha Devi and Ors.; 2013 ACJ 1382 has held that :

"8. Thus, an insurance policy covers the liability incurred by the insured in respect of death of or bodily injury to any person (including an owner of the goods or his authorised representative) carried in the vehicle or damage to any property of a third party caused by or arising out of the use of the vehicle. Section 147 does not require an insurance company to assume risk for death or bodily injury to the owner of the vehicle.

9. In the case of Oriental Insurance Co. Ltd. versus Sunita

Signature Not Verified Signed by: ALOK KUMAR Signing time: 24-Mar-23 1:17:46 PM

Rathi it has been held that the liability of an insurance company is only for the purpose of indemnifying the insured against liabilities incurred towards a third person or in respect of damages to property. Thus, where the insured i.e. an owner of the vehicle has no liability to a third party the insurance company has no liability also." In view of the above settled principle of law, the award passed

by learned Claims Tribunal is found to be perverse because in the

present case the application is filed u/S.166 of Motor Vehicles Act

and the liability of appellant/Insurance Company is only for the

purpose of indemnifying the insured/owner of the vehicle against

the liability incurred towards third party, therefore, present appeal is

allowed and the award dated 24.3.2004 is hereby set aside.

(SUNITA YADAV) JUDGE AKS

Signature Not Verified Signed by: ALOK KUMAR Signing time: 24-Mar-23 1:17:46 PM