Case: National Insurance Co. Ltd Vs. Swaroopa & Others

Civil Appeal No. 1805 of 2005 @ SLP (C) No. 4089 of 20031. The respondents have been served but are unrepresented. 2. Heard the learned counsel for the petitioner. 3. Leave granted. 4. Respondents 1 to 6 are the legal representatives of the deceased who died in an accident on 28-1-1996 leading to the filing of a claim petition on 9-7-1996 under the provisions of the Motor Vehicles Act, 1988. By order dated 20-8-1990 (sic), the Motor Accidents Claims Tribunal (for short "the Tribunal") granted compensation both against the appellant Insurance Company and the owner of the vehicle, Respondent 7 herein. The appeal filed in the High Court by the appellant Insurance Company disputing its liability to pay to the legal representatives of the deceased was dismissed on 27-8-2002, in view of the law then prevailing as a result of the decision of this Court in New India Assurance Co. v. Satpal Singh (2000 (1) SCC 237 : 2000 SCC (Cri) 130). The said decision has now been overruled by this Court in New India Assurance Co. Ltd. v. Asha Rani (2003 (2) SCC 223 : 2003 SCC (Cri) 493 ) wherein it has been held that an insurance company will not be liable to pay compensation in respect of a gratuitous passenger being carried in a goods vehicle if the vehicle meets with an accident.

Decision reasoning: 0[ds]The said decision has now been overruled by this Court in New India Assurance Co. Ltd. v. Asha Rani (2003 (2) SCC 223  : 2003 SCC (Cri) 493 ) wherein it has been held that an insurance company will not be liable to pay compensation in respect of a gratuitous passenger being carried in a goods vehicle if the vehicle meets with an accident.Though the petitioner may have a point on the issue of interest in view of the decision of this Court in Kaushnuma Begum v. New India Assurance Co. Ltd. (2001 (2) SCC 9  : 2001 SCC (Cri) 268 ) but having regard to the facts and circumstances of the case and that the accident took place seventeen years ago, we are not inclined to interfere with the impugned order in exercise of powers under Art.136 of the Constitution.