Jagdish Kumar Sood vs United India Insurance Co. Ltd. and Ors.

Court

Supreme Court of India

Date

6 March 2018

Case No.

Civil Appeal No. 240 of 2017

Result

Allowed

Bench

Dipak Misra, D.Y. Chandrachud, A.M. Khanwilkar

Citation

[2018] 3 S.C.R. 17 : 2018 INSC 209

Headnote

Motor Vehicles Act, 1988 (as amended vide Amendment Act

54 of 1994 w.e.f. 14.11.1994 and further amendment w.e.f. 28/3/2001) – s.2(21) r/w ss. 2(15), 2(48) and 10(2)(d) – Death due to motor accident – Tribunal awarded compensation but absolved the insurer on the ground that the vehicle involved in the accident was a Light Goods Vehicle – Tribunal held that in the absence of a specific authorization to drive a transport vehicle, the liability could not be fastened on the insurer – Held: The issue is covered by a judgment of a three Judge Bench of Supreme Court in Mukund Dewangan case – Order of the Tribunal absolving the insurer accordingly set aside – The liability shall jointly and severally be fastened on the insurer, in addition to the owner and driver. The husband of third respondent died as a result of an accident caused by a collision with an offending truck. The Tribunal awarded compensation but absolved the insurer on the ground that the vehicle involved in the accident was a Light Goods Vehicle. The Tribunal held that in the absence of a specific authorization to drive a transport vehicle, the liability could not be fastened on the insurer. The Tribunal directed the insurer to pay in the first instance and allowed it to recover the compensation from the driver and the owner. High Court did not interfere with the order of the Tribunal absolving the insurer. Hence the present appeal by the owner.

Allowing the appeal, the Court

HELD : The issue which arises before the Court is not res integra and is covered by a judgment of a three Judges of this Court in Mukund Dewangan v Oriental Insurance Company Limited. The order of the Tribunal absolving the insurer shall accordingly stand set aside. The liability shall jointly and severally be fastened on the insurer, in addition to the owner and driver. [Paras 4, 6] [19-A-F]

Mukund Dewangan v Oriental Insurance Company

Limited (2017) 14 SCC 663 – relied on.

The Judgment of the Court was delivered by DR. D.Y. CHANDRACHUD, J. 1. The Motor Accident Claims Tribunal allowed a claim for compensation filed by the third respondent. The claim arose from the death of the husband of the claimant on 4 January 2009 as a result of an accident caused by a collision with an offending truck. The Tribunal awarded an amount of Rs 4,08,000 together with interest at 6 per cent per annum. In an appeal filed by the third respondent the High Court enhanced the compensation to Rs 8,04,000. Interest @ 7.5 per cent per annum was awarded on the enhanced compensation. 2. T

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