IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MRS. JUSTICE K.HEMA MONDAY, THE 7TH JANUARY 2008 / 17TH POUSHA 1929 MFA.No. 474 of 2001(B) ---------------------- OPMV.753/1994 of MOTOR ACCIDENT CLAIMS TRIBUNAL, THODUPUZHA .................... APPELLANT/3RD RESPONDENT: ----------- THE ORIENTAL INSURANCE CO. LTD., THODUPUZHA NOW REPRESENTED BY ITS ASSISTANT MANAGER, KOCHI REGIOINAL OFFICE, METRO PALACE, KOCHI-18. BY ADV. SRI.MATHEWS JACOB (SR.) RESPONDENTS/PETITIONERS AND RESPONDENTS 1 AND 2: ------------- 1. RATHI, W/O. LATE JAYARAJ, KOCHUPURACKAL HOUSE, KANNICKAL P.O., MOOLAMATTOM. 2. GEETHA (MINOR), -DO- -DO- 3. GINU (MINOR), -DO- -DO- 4. E. RAJAN, S/O. AUGUSTINE, EDPARAMBIL HOUSE, THODUPUZHA. 5. GIGI, S/O.CHANDRAN, MULPLACKAL HOUSE, KANNICKAL KARA, ELAPPILLY VILLAGE. (MINOR RESPONDENTS 2 AND 3 ARE REPRESENTED BY THEIR MOTHER 1ST RESPONDENT) R1 TO R3 BY ADV. SRI.MATHEW JOHN THIS MISC. FIRST APPEAL HAVING BEEN FINALLY HEARD ON 07/01/2008, THE COURT ON THE AME DAY DELIVERED THE FOLLOWING: ORDER ON C.M.P.4027/01 IN M.F.A.474 OF 2001 ........................ DISMISSED. ID/- J.B. KOSHY, JUDGE. ID/- K. HEMA, JUDGE. 7.1.2008 // TRUE COPY// P.S. TO JUDGE. J.B. KOSHY & K. HEMA, JJ. -------------------------------------------- M.F.A.No.474 of 2001 -------------------------------------------- Dated this the 7th day of January, 2008. JUDGMENT Koshy, J: This appeal is by the Insurance Company. Husband of the first respondent died in a motor accident due to the negligent driving of the mini lorry by the 2nd respondent. Appellant was travelling in a goods vehicle as a passenger. After calculating compensation, the Tribunal directed that the amount should be deposited by the appellant-Insurance company. A definite contention was raised by the appellant-insurance company that it has no liability to pay the amount. There was no coverage of insurance for the passenger in the goods vehicle. 2. Admittedly, he was travelling in a goods vehicle. But the Tribunal rejected the same in view of the decision reported in New India Assusrance Co. Ltd. v. Satpal Singh [(2000) 1 SCC 237]. The above view was overruled by the Apex Court and held that all passengers in motor vehicle are covered under the statutory insurance in view of the new definition in the amended Act. The above decision was overruled in New India Insurance [MFA.474/01] 2 Co. Ltd. v. Asha Rani and others (2003) 2 SCC 223). The Apex Court also held in National Insurance Co. Ltd. V. Chinnamma and others [(2004) 8 SCC 697) that even if such passengers are accompanying goods they will not get the benefit if the accident is before 14.11.1994. Therefore Insurance company is not liable to pay the same. The decision in Satpal Singh's case was overruled by the Supreme Court in National Insurance Co. Ltd. v. Baljit Kaur and others ( AIR 2004 SC 1340) only in 2003. In such case, Insurance company should pay the amount and recover the amount from the insured. The same principle was followed in Oriental Insurance Co. Ltd. v. Nanjappa and others (AIR 2004 SC 1640). In the above circumstances, the Insurance Company is allowed to recover the amount from the insured in execution of the award. The Tribunal awarded 12% interest from the date of application considering the rate of interest at the time of occurrence. We reduce the rate of interest and the claimants are entitled to interest only at the rate of 9% instead of 12%. Appeal is partly allowed. Sd/- J.B.KOSHY, JUDGE. Sd/- K. HEMA, JUDGE. Krs. [MFA.474/01] 3 J.B. KOSHY & K. HEMA, JJ. -------------------------------------------- M.F.A.No.474 of 2001 -------------------------------------------- Dated this the 7th day of January, 2008. JUDGMENT