United India Insurance Company ... vs Puppala Padmaja And 4 Others
2022 Latest Caselaw 5435 Tel

  HON'BLE SMT. JUSTICE G. ANUPAMA CHAKRAVARTHY

                       M.A.C.M.A. No.3434 of 2008
JUDGMENT :

Learned counsel for the appellant appearing on behalf of the

Insurance Company reported that the compensation awarded by the trial

Court is adequate and the Insurance Company intends to withdraw the

appeal in spite of the letter dated 20.10.2022 addressed by the Secretary,

High Court Legal Services Committee to refer the matter to the Lok

Adalat.

Further, learned counsel for the appellant reported that, in view of

the Full Bench judgment of the erstwhile High Court of Andhra Pradesh

reported in APSRTC, Hyderabad and another Vs Kanakaratna Bai

and another1, the appeal can be disposed of by this Court.

As per the said judgment, though the bus was hired to APSRTC,

which was insured by the owners with the Insurance company, the

insurance company was held solely and exclusively liable for payment

of compensation arising out of such passengers/3rd party claims unless

any of the grounds in Section 149(2) of Motor Vehicles Act

1988/Section 96(2) of the Act, 1939 are made out. The above judgment

clearly applies to the facts and circumstances of the present case.

1 2013 (1) ALD 644 In the present case, the owners have insured the bus with the

Insurance Company which was hired to the RTC. As far as the quantum

is concerned, the Tribunal has awarded. The just compensation, as far as

the liability is concerned, the insurance company filed this appeal with a

contention that the RTC is liable to pay the compensation and not the

Insurance Company. But, in view of the judgment of the Full Bench

dated 12.11.2012, the Insurance Company alone is liable to pay the

compensation.

With the above said observations, the M.A.C.M.A is dismissed

holding that the Insurance Company is liable to pay the compensation

awarded by the Tribunal and the orders passed by the Tribunal in

M.V.O.P. No.823 of 2009 shall hold good. No order as to costs.

Pending miscellaneous applications, if any, shall stand closed.

_______________________________ G. ANUPAMA CHAKRAVARTHY, J.

Date: 28.10.2022 KRR/LK