^ IN THE HIGH COIJRT OF CHHATTISGARH AT BILASPTJR(C.G.) M.A.(C) No. $r.2-3 OF 2007 (APPEAL VALUED AT Rs.3.24.000/^ ^^ APPEAL UNDER SECTION f73 OF THE MQT'OR VEHTCT.RS ACT. 1988. ^ APPELANT (NON- APPLICANT .T<9x3 ' RESPONDENTS .^APPUCANTt NO.L a^r ^s.^'^ ^Q^APPLICANT No(T))y2_- (NON-APPLICANT^ United India Insurance Company Limited, Gopi- Talkies, College-Road, Rai^ (C.G.) VERSUS :1.- Mahendra Prasad Singh, S/0- ^"^. Shri Ram Naresh Singh, aged- 50 years, :2.^ Smt Rambai,1 W/O-Shri Mahendra Prasad Singh, Aged- 45 Years, Both are R/0-Village-Devadah, P.S.-Khadgwaon, Tahsil- Manedragarh, Distt.-Koria (C.G.) / :3. (NON-APPLICANT N0^] y^ / :4. ^ Ishwar Gupta,S/0-Pargav Gupta (Owner of Vehicle), R/0- Lohakhan, Raigrh, Post-Raigarh, P.S.-Pusaur, Distt. -Raigarh (C.G.)' Ramnath S/0-Dhani Ram, Aged About-40years, R/0- Katkona, P.S. - Khadgwaon, Distt. Koric (C.G.)(Driver) Being aggrieved by the award dated 18/01/07, passed by Shri L.R. Thakur, 'IInd AdditiQhal Motor Accident Claims Tribunal. Manendr^garh, Distt.-Koria(C.G.), in claim case no. 10/2006,(between the parties Mahendra Prasad Singh & another vs. Ishwar Gupta & others ), the appellant Insurance Company prefers this appeal on the followmg facts and grounds amongst others:- k ^ HIGH COURT OF CHHATTISGARH. BILA8PUR DB: Hon»bleI. M. QUDDUSI & Hoa*ble G. MINHAJUDDIN, JJ APPBLLANT: RESPONDBNTS: M.A(Q. No. 523/2007 United India Insuraace Coinpaay Ltd, Vs. Mahendra Prasad Singh & ofhers APPBLLANT: RBSPONDBNTS: M.A(Q. No. 894/2007 Ishwar Gupta Vs. Mahendra Prasad Siagh & others MI8C. APPBALS UNDBR SBCTION 173 OP THE_MOTOR VEHICLES ACT. 1988 Appearance: Mr. Dashrafbi Gupta, counsel for the AppeUaat Insuraace Company ia M.A(C). No.523/2007 and .Respondent no.4 in M.A(C). No.894/ 2007. None for the appeUaat owner ia M.A(C). No.894/2007 aad respondent No.3 in M.A(C).No.523/2007. Mr. Saajay Agrawal, on behatfofMtes Shamula Siaghai, couiisel for the Clamiants/respondents 1 & 2 m bofh fhe appeals, Per I.M. OUDDUSI. J. ORAL ORDBR (15.07.2011) 1. List is beiag revised. Case is agaia called out. Siace no one is present on behalff of fhe owner Ishwar Gupta, appellant ia M.A(C). No.894/2007 aad respondent no.3 in M.A(C). No.523/2007), even m the revised Ust, M.A.(C). No.894/2007 filed by him is liable to be disniissed in default, but siace ia fhe eonnected appeal Mr. Dashrafh Gupta hs^^DutJn^appearance u^ ^^7 aad argued on behalf of fhe Insuraace Coinpaay, we proceed ex-parte agaiast fhe owner in M.A(C). No. 523/2007, Since bofh fhese appeals arise out of the impugned award dated 18.01.2007 passed by the II Addl. Motor Accident Claims Tribunal, Maaendragarh, Distt. Korea ia Claml Case No, 10/2006 fhey are beiag disposed ofby fhis comLinon order. Brief facts of fhe case are fhat on 28.11.2004 near Bachera Ghat, Ratanpur fhe Tractor & Trolley beanng Regn.No, C.G.13-A/3203 & C.G.13-A/3205 which was being driven by non-appUcaat no.2 Raixinafh in a rash aad negUgent niaaner inet wifki accident ia which deceased Bir Baliadiir son of Mahendra Prasad has died on fhe spot At tiie tune of accident, the deceased was aged about 19 years. He was workiag as labourer ia R.M,P. Road Construction Compaay aiid was earaiag Rs.3000/- per monfh, The claimants being parents/legal representatives have filed claun petition u/s 166 of fhe Motor Vehicles Act for fhe award of total coiapensation of Rs,39 lakhs on various heads. The learaed Clamis Tribunal haviag regard to the facte situation aad evidencte on record has held fhat due to rash aad negUgent driviag of non-appUcant no.2, the said Tractor & TroUey met wifh accident, as a result of which, deceased died aad there was breach of conditions ofthe msirraace poUcy by fhe driver and owner. Havmg fhus held, it has awarded a total coinpensation of Rs.3,24,000/" with iaterest @ 6% per anmiTn which the claimacits ^re entiUed to receive fromi non-appUcaats 1 & 2. However, fhe ihsurarice coiapany was directed to pay fhe ainount to fhe claiaiaats aad fhereafter recover fhe same froni the owner aad driver. ^f '^ ^^'y" -^ l.\f S. We have heard leanied counsel for fhe pardes aad have gone through fhe records of fhe Tribunal. 6. On perusal of fhe insuraace poUcy it appears fhat fhe Tractor ia question was iasured for agricultural purpose under fhe Famiers Package PoUcy but fhe deceased was not einployed as labour ia the said Tractor, It is clear fhat fhe deceased was sitting in fhe capacity of a gratuitous passenger goiag finoni Chapar to Ratanpur aad at fhe tune of accident he was workuig as a labourer ia R.M,P. Road constniction Coiiipaay and was not a labourer engaged iii fhe Tractor-TroUey. 7. In fhe facts aad circumstaaces of the present case, we are of fhie opirdon fhat owner is Uable to pay coinpensation as ia fhe Trolley (Trailer) of fhe Tractor where fhe deceased was sittmg, fhere was no seating capacity aad fherefore, fhLere was breach of conditions of Insuraace PoUcy. Hence, fhe iasuraace conipany is not Uable to pay coinpensation. 8. In case of brcach of iasiirance poUcy, fhere is no provision under ffaie law to hold fhe insurance Compaay responsible to pay fhe amoiint of coiapensation to tihi^ claunaiits and fhen recover it froia fhe owner aad driver. In National lasuraace Company Vs. Swarn Singh & others reported in (2004) 3 SCC 297, fhere was direction to pay aad recover but fhat was a case offhird party. The case on haiid is not a fhird party case. Therefore, the lusiiraace Conipaay could not have been held liable to pay fh^ amount of compensation and rccover it JBrom fhe owner and driver later on. ;\ - 9. In view of the above, fhe Insuraace Compaay is exonerated from fhe Uability to pay aiid recover fix)m fhe owner & driver aad fhe appeal filed by the Insuraace Compaay is allowed, No "^ > ofher poiat has been considercd as no one appears for fhe owner. 10. In the rcsult, M.A(C).No. 523/2007 is aUowed & M.A(C).No. 894/2007 is disxnissed, No order as to costs, II. The aaiount which has been deposited by the Insuraace Compaay shall be atlowed to be wifhdrawn by it, if not already disbursed, but tf fhe sanie has been disbursed to fhe clamiaats then fhe Insuraace Compaay wiU be free to recover from the owner. Sd/- LM.Quddusi Judge Sd/- G. IVIinhajuddin Judge Rao