F.A.O.NOs. 2474 to 2477 OF 1995 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH F.A.O.NO. 2474 OF 1995 Date of decision:9th September, 2010 The Oriental Insurance Company Limited, Regional Office, SCO NO. 109-110-111 Sector 17-D, Chandigarh through its attorney Sh.K.G.Ralli, Manager. .......Appellant Versus Smt. Jagiro Devi and others ........Respondents F.A.O.NO. 2475 OF 1995 The Oriental Insurance Company Limited, Regional Office, SCO NO. 109-110-111 Sector 17-D, Chandigarh through its attorney Sh.K.G.Ralli, Manager. .......Appellant Versus Smt. Nirmala Devi and others ........Respondents F.A.O.NO. 2476 OF 1995 The Oriental Insurance Company Limited, Regional Office, SCO NO. 109-110-111 Sector 17-D, Chandigarh through its attorney Sh.K.G.Ralli, Manager. .......Appellant Versus Smt. Bachni Devi and others ........Respondents F.A.O.NO. 2477 OF 1995 The Oriental Insurance Company Limited, Regional Office, SCO NO. 109-110-111 Sector 17-D, Chandigarh through its attorney Sh.K.G.Ralli, Manager. .......Appellant Versus Smt. Aaki Devi and others ........Respondents BEFORE: HON'BLE MR. JUSTICE K.KANNAN Present: Mr. D.P.Gupta, Advocate, for the Insurance Company. F.A.O.NOs. 2474 to 2477 OF 1995 2 Mr. R.K.Agnihotri, Advocate for the respondents. 1. Whether Reporters of local papers may be allowed to see the judgment? Yes/No 2. To be referred to the Reporters or not?Yes/No 3. Whether the judgment should be reported in the Digest? Yes/No K.Kannan, J.(Oral) 1. All these appeals arise out of the same accident. The four persons travelling in the insured's truck got killed when in an attempt to save the cyclist. The driver was alleged to have swerved the vehicle to one side, hit against a tree which resulted in fatal injuries. As regards the claims arising in FAO Nos. 2474 to 2476 admittedly, those persons were employed by the deceased Balbir Singh who had hired the truck for transporting his household articles. The policy of insurance will cover the workmen not merely of the insured but also avail to the workmen of the hirer of the vehicle(see, M.Janga Reddy v. Shaik Mahboob (1990) 1 ACC 498, 1989 ACJ 1016(AP)). The plea of the Insurance Company that they were gratuitous passengers and hence they were not entitled to insurance cover is not correct. The Court found that they were workmen and they were entitled to protection under the statutory policy under Section 147 of the Motor Vehicles Act(hereinafter referred to as 'Act'). I uphold the award, confirming the finding that the deceased persons for whom claims are made or which are subject matter in FAO Nos. 2474 to 2476 of 1995 and dismiss the appeal filed by the insurer. 2. As regards the claim for compensation for the death of F.A.O.NOs. 2474 to 2477 OF 1995 3 the hirer of the truck, the accident took place on 15.04.1994 that was before the date when an amendment was brought in Section 147 of the Act, providing a statutory cover also for persons who are owners of the goods being carried in the vehicle. The amendment was brought on by Act 54 of 1994 with effect from 18.04.1994. The issue whether the insurer would be liable for a owner of the goods being carried in a goods carriage claim before the Hon'ble Supreme Court in New India Assurance Co. Ltd. vs. Asha Rani and others (2003) 2 SCC 223 and it was held that in a pre amendment situation an insurer shall not be entitled to cover such a claim. There shall be no liability to satisfy the claim arising out of the death of the hirer of the vehicle. The enforcement of the award shall become payable for the claimants only against the owner of the truck. 3. The award passed in MACT case No. 63, i.e. FAO NO. 2477 of 1995 against the insurer is set aside. The appeal by the insurer is allowed. 4. If during the pendency of the appeal, any amount has been recovered from the insurer, the insurer shall not claim for refund from the claimants but shall restrict its right only against owner of the truck. For any unrecovered portion, the claimant will have the remedy only against the owner of the truck. All the appeals are disposed of as above. [K.KANNAN] JUDGE 9th September, 2010 Shivani Kaushik