FAO No.717 of 1989 -1- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH X Obj No.37-CII of 1990 and FAO No.717 of 1989 Date of Decision. 05.01.2011 United India Insurance Company Ltd., having its registered office at 29 White Road Madras through Sh. J.C. Magoon, Assistant Manager United India Insurance Company, Regional Office, Chandigarh ......Appellant Versus Smt. Santra mother of Billu Singh and another ......Respondents Present: Mr. Sanjiv Pabbi, Advocate for the appellant. None for the respondents. CORAM:HON'BLE MR. JUSTICE K. KANNAN 1. Whether Reporters of local papers may be allowed to see the judgment ? 2. To be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest? -.- K. KANNAN J.(ORAL) 1. The issue for consideration in the appeal is liability of the insurance company in a case where the deceased passenger was travelling in a goods carriage. He was said to be one of the devotees going to Hanuman Mandir in a lorry. The insurance company had denied any liability for covering the risk of a passenger in a goods carriage but the defence was rejected by placing reliance on Goods Carriage Requisition by the State and the State being made liable for persons carried in such vehicle. The requisitioning of vehicle through statute and making the State liable is wholly different from a contractual liability arising under a contract of insurance that excludes liability for an insurer for a gratuitous passenger or a passenger being FAO No.717 of 1989 -2- carried for hire in a goods carriage. The liability cast on the insurer was clearly wrong and the award casting the liability on the insurer is set aside. 2. If during the pendency of appeal, any amount has been covered by the claimant or the insurer, the entitlement of the insurer shall be only to recover the same from the insured owner and not from the claimants. 3. The appeal is allowed to the above extent. 4. There is also a cross objection for enhancement of compensation for death of a passenger, who was 14 years of age. The Tribunal had awarded Rs.18,000/-. I will increase it to Rs.50,000/- and the amount in excess over what has been awarded by the Tribunal shall bear interest @6% from the date of the award till the date of payment. The liability shall be on the owner/insured only. 5. The cross objection is allowed to the above extent. (K. KANNAN) JUDGE January 05, 2011 Pankaj*