Case Note & Summary
The case arises from a motor accident claim filed by the legal representatives of Bhanudas Kisan Goswami, who died in a tractor-trolley accident on 26 April 2002. The deceased, a labourer, was travelling as a passenger in a tractor trolley driven by Bhagwat Gosuji Dongarwar, owned by Gosuji Waktuji Dongarwar. The tractor was insured with the National Insurance Company Ltd. The claimants sought compensation of Rs. 2 lakhs. The Motor Accident Claims Tribunal, Bhandara, held that the accident occurred due to the rash and negligent driving of the tractor driver, and awarded compensation of Rs. 2 lakhs with interest at 9% p.a. from the date of petition till realization, including no fault liability under Section 140 of the Motor Vehicles Act, 1988. The tribunal exonerated the insurance company on the ground that the deceased was a gratuitous passenger, not covered under the insurance policy. The owner and driver appealed against the award, primarily challenging the quantum of compensation and the exoneration of the insurance company. The High Court, after considering the evidence and arguments, upheld the finding of negligence and the quantum of compensation. However, it modified the award by directing the insurance company to pay the compensation to the claimants and then recover the same from the owner, following the principle of 'pay and recover' as laid down in various Supreme Court judgments. The court noted that the tractor was insured and the accident occurred during the use of the vehicle, and thus the insurance company should not be completely exonerated. The appeal was partly allowed, with the insurance company directed to pay the compensation and then recover from the owner.
Headnote
A) Motor Accident Claims - Gratuitous Passenger - Liability of Owner and Driver - The appeal challenged the award of compensation by the Motor Accident Claims Tribunal, Bhandara, which held the appellants (owner and driver) liable to pay compensation of Rs. 2 lakhs with interest at 9% p.a. for the death of Bhanudas, who fell from a tractor trolley due to rash and negligent driving. The insurance company was exonerated on the ground that the deceased was a gratuitous passenger, not covered under the policy. The High Court upheld the finding of negligence and the quantum of compensation, but modified the award to direct the insurance company to pay the compensation and then recover from the owner, as the tractor was insured and the accident occurred during its use. (Paras 1-10) B) Motor Vehicles Act, 1988 - Section 147 - Insurance Policy - Gratuitous Passenger - The court held that a gratuitous passenger in a tractor trolley is not a third party and is not covered under the insurance policy. However, following the principle of 'pay and recover', the insurance company was directed to pay the compensation to the claimants and then recover the same from the owner of the vehicle. (Paras 8-10)
Issue of Consideration
Whether the owner and driver of a tractor-trolley are liable to pay compensation for the death of a gratuitous passenger, and whether the insurance company is liable to indemnify the owner when the deceased was not a third party but a gratuitous passenger.
Final Decision
The appeal is partly allowed. The judgment and order of the Motor Accident Claims Tribunal, Bhandara, dated 29.12.2005, is modified. The insurance company is directed to pay the compensation amount of Rs. 2 lakhs with interest at 9% p.a. from the date of petition till realization to the claimants, and thereafter recover the same from the owner of the tractor (appellant no.1). The award against the driver (appellant no.2) is set aside.
Law Points
- Motor Vehicles Act
- 1988
- Section 140
- Section 166
- Section 147
- Gratuitous passenger
- No fault liability
- Vicarious liability
- Negligence
- Contributory negligence
