Bombay High Court Allows Insurance Company's Appeal in Motor Accident Claim — Gratuitous Passenger in Goods Vehicle Not Entitled to Compensation. Claimant traveling as gratuitous passenger in goods vehicle cannot be considered owner of goods; insurer not liable under Motor Vehicles Act, 1988.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The case involves an appeal by United India Insurance Company Ltd. against the award of compensation by the Motor Accident Claims Tribunal, Palghar, in favor of the claimant Sanjay Prabhakar Davane. The claimant sustained injuries in a road accident on 14 January 2009 while traveling in a goods truck (offending truck) along with his father and a carpenter. They had gone to Lasalgaon to purchase wood for constructing a boat/trawler. The truck was driven negligently and met with an accident near village Dengachimet. The claimant suffered 50% permanent partial disability. The Tribunal awarded compensation holding that the claimant was the owner of the goods. The insurance company appealed, contending that the claimant was a gratuitous passenger and not the owner of goods, and thus the insurer is not liable. The High Court examined the evidence and found that the claimant's father was the owner of the goods, and the claimant was merely accompanying him. The claimant's occupation was shown as labourer, not owner of goods. The Court held that the claimant was a gratuitous passenger in a goods vehicle, and under Section 147 of the Motor Vehicles Act, 1988, the insurance company is not liable to pay compensation for gratuitous passengers. The appeal was allowed, setting aside the Tribunal's award.

Headnote

A) Motor Accident Claims - Gratuitous Passenger - Goods Vehicle - Section 147 of Motor Vehicles Act, 1988 - The claimant was traveling in a goods truck along with his father and carpenter to purchase wood for constructing a boat. The Tribunal awarded compensation treating the claimant as owner of goods. The High Court held that the claimant was a gratuitous passenger as he was not the owner of the goods; his father was the owner. The insurance company is not liable to pay compensation for a gratuitous passenger in a goods vehicle. (Paras 1-7)

B) Motor Accident Claims - Owner of Goods - Burden of Proof - Section 147 of Motor Vehicles Act, 1988 - The claimant's occupation was shown as labourer in the claim petition. The High Court held that the claimant failed to prove he was the owner of the goods. The father of the claimant was the owner of the goods. Therefore, the claimant cannot be considered as owner of goods and is a gratuitous passenger. (Paras 3-7)

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Issue of Consideration

Whether the claimant, who was traveling in a goods vehicle as a gratuitous passenger, is entitled to compensation from the insurance company.

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Final Decision

Appeal allowed. The impugned judgment and award passed by the Motor Accident Claims Tribunal, Palghar is set aside. The insurance company is not liable to pay compensation.

Law Points

  • Gratuitous passenger in goods vehicle not covered by insurance
  • Owner of goods exception under Section 147 of Motor Vehicles Act
  • 1988
  • Burden of proof on claimant to establish status as owner of goods
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Case Details

2023 LawText (BOM) (05) 41

First Appeal No. 1512 of 2013

2023-05-03

Shivkumar Dige, J.

2023:BHC-AS:18992

Mr. Rahul Mehta i/b KMC Legal Venture for the Appellant, Mr. T.J. Mendon for the Respondent

United India Insurance Company Ltd.

Mr. Sanjay Prabhakar Davane and Mr. Asif Hussain Shaukat Hussain

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Nature of Litigation

Appeal against award of compensation by Motor Accident Claims Tribunal

Remedy Sought

Insurance company sought to set aside the award of compensation on the ground that the claimant was a gratuitous passenger

Filing Reason

Claimant was traveling in a goods vehicle as a passenger and sustained injuries; Tribunal awarded compensation treating him as owner of goods

Previous Decisions

Motor Accident Claims Tribunal, Palghar awarded compensation in favor of the claimant

Issues

Whether the claimant was a gratuitous passenger in the goods vehicle? Whether the insurance company is liable to pay compensation for a gratuitous passenger?

Submissions/Arguments

Appellant: Claimant was a gratuitous passenger, not owner of goods; insurance company not liable. Respondent: Claimant was accompanying his father who purchased wood; claimant was owner of goods; accident due to driver's negligence.

Ratio Decidendi

A person traveling in a goods vehicle as a passenger, who is not the owner of the goods being carried, is a gratuitous passenger. Under Section 147 of the Motor Vehicles Act, 1988, the insurance company is not liable to pay compensation for injuries to a gratuitous passenger in a goods vehicle.

Judgment Excerpts

The issue involved in this Appeal is that the Claimant was a gratuitous passenger in offending vehicle, in spite of that the Motor Accident Claims Tribunal, Palghar awarded compensation which is erroneous. The occupation of Claimant was shown in the Claim Petition as labourer. If he was labourer then how the Claimant can be considered as owner of the goods?

Procedural History

The claimant filed a claim petition before the Motor Accident Claims Tribunal, Palghar, which awarded compensation. The insurance company appealed to the High Court of Bombay.

Acts & Sections

  • Motor Vehicles Act, 1988: Section 147
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