Case Note & Summary
The appellant, Sri Gopalakrishna G Nayak, owner of a Bajaj luggage carrier auto rickshaw, filed this appeal under Section 173(1) of the Motor Vehicles Act, 1988, against the judgment and award dated 28.03.2011 passed by the Senior Civil Judge & JMFC and Member, Additional MACT, Sagar, in MVC No.225/2009, awarding compensation of Rs.4,19,000/- with interest at 6% per annum to the respondents-claimants. The respondents are the legal representatives of the deceased Hanumanthappa, who died in a motor vehicle accident on 09.06.2009 while transporting goods in the appellant's auto rickshaw. The claimants filed a claim petition before the Tribunal, which awarded compensation and fixed liability on the owner (appellant) to pay the same. The appellant contended that the driver of the vehicle, respondent No.4 Binu, had a valid driving license and the vehicle was insured with respondent No.5 United India Insurance Company Limited under a valid policy. Therefore, the liability should be on the insurer, not the owner. The court examined the facts and found that the driver indeed possessed a valid driving license and the insurance policy was in force at the time of the accident. Consequently, the court held that the insurer is liable to pay the compensation and exonerated the owner from liability. The appeal was allowed, and the award against the appellant was set aside.
Headnote
A) Motor Vehicle Act - Appeal against award - Section 173(1) - Liability of owner - The owner of the luggage carrier auto rickshaw appealed against the award fixing liability on him. The court held that since the driver had a valid driving license and the insurance policy was valid, the liability to pay compensation falls on the insurer, not the owner. (Paras 1-5) B) Motor Vehicle Act - Insurance - Valid driving license - The court found that the driver possessed a valid driving license and the insurance policy was in force. Therefore, the insurer is liable to indemnify the owner. (Paras 3-5)
Issue of Consideration
Whether the owner of the vehicle is liable to pay compensation when the driver had a valid driving license and the insurance policy was in force at the time of accident.
Final Decision
The appeal is allowed. The judgment and award dated 28.03.2011 in MVC No.225/2009 passed by the Senior Civil Judge & JMFC and Member, Additional MACT, Sagar, insofar as it fixes liability on the appellant-owner, is set aside. The insurer (respondent No.5) is directed to pay the compensation amount to the claimants.
Law Points
- Motor Vehicle Act
- 1988
- Section 173(1)
- Liability of owner
- Valid driving license
- Insurance policy coverage
- Vicarious liability
