Case: National Insurance Co. Ltd Vs. Kaushalaya Devi

2. Kishan Lal (deceased) was traveling in a truck bearing registration No.HP-11-1448 on 16.3.2000. He was aged about 27 years. He was unmarried. The said truck met with an accident. First respondent being the mother of the deceased filed an application for payment of compensation under Section 166 of the Motor Vehicles Act, 1988 (The Act). Appellant was served with a notice. One of the objections taken by it was that the driver of the truck did not possess any valid or effective driving licence and that the deceased was travelling as an unauthorized passenger on the truck which was a goods carriage3. The Tribunal awarded a sum of Rs.1,18,000/- by way of compensation. An appeal was preferred there against before the High Court. By reason of the impugned judgment, whereas the contention of the appellant-insurance company was upheld, having regard to the fact that the amount awarded in favour of the first respondent had already been deposited, it was directed to be released in favour of the claimant with liberty to the insurance company to recover the said amount along with interest from the owner by filing an appropriate application for execution before the Tribunal without being required to file a separate suit4. Both the insurance company as also the owner of the truck are, thus, before us

Court's reasoning:
12. In view of the findings arrived at by the High Court, it must be held that the owner alone was liable to pay compensation to the first respondent herein for causing death of her son by rash and negligent driving on the part of the driver of the truck. The High Courts judgment must be sustained on this ground13. The deceased was not the owner of any goods which were being carried in the truck. Admitted position is that he had been traveling in the truck for the purpose of collecting the empty boxes. He was a vegetable dealer. He was not traveling in the truck as owner of the goods viz. the vegetables. He was traveling in the truck for a purpose other than the one for which he was entitled to travel in a public carriage goods vehicle. This aspect of the matter is squarely covered by the decision of this Court in Brij Mohan (supra) wherein the Bench cited with approval the decision in New India Assurance Co. Ltd. v. Asha Rani & Ors. [(2003) 2 SCC 223]  wherein it was stated:26. In view of the changes in the relevant provisions in the 1988 Act vis-à-vis the 1939 Act, we are of the opinion that the meaning of the words any person must also be attributed having regard to the context in which they have been used i.e. a third party. Keeping in view the provisions of the 1988 Act, we are of the opinion that as the provisions thereof do not enjoin any statutory liability on the owner of a vehicle to get his vehicle insured for any passenger travelling in a goods vehicle, the insurers would not be liable thereforSee also Prem Kumar & Ors. v. Prahlad Dev & Ors. [2008 (1) SCALE 531 ] and Oriental Insurance Co. Ltd. v. Prithvi Raj [2008 (1) SCALE 727 ]