NEW INDIA ASSURANCE CO LTD Vs. VEDWATI
LAWS(SC)-2007-2-101
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on February 20,2007

NEW INDIA ASSURANCE CO. LTD. Appellant
VERSUS
VEDWATI Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) Challenge in these appeals is to the judgment rendered by a Division Bench of the Allahabad High Court dismissing the appeal filed by the appellant (hereinafter referred to as the 'Insurer'). By the impugned judgment the High Court held that the respondent Nos.1 to 6 (hereinafter referred to as the 'Claimants') were entitled to compensation and that the same was to be paid by the insurer.
(3.) Background facts in a nutshell are as follows: A Claim Petition was filed under Section 166 of the Motor Vehicles Act, 1988 (in short the 'Act') claiming compensation with the allegation that Paras Ram Agnihotri (hereinafter referred to as the 'deceased') was returning from his village Gokhia from Atarra in tractor No.MP 16A/2637 after delivering certain goods there. The tractor overturned due to rash and negligent driving by the driver, with the result the deceased has lost his life. He was aged about 38 years and was working as priest and agricultural farmer from which he was earning about Rs.7,000/- per month. Adjudicating the Claim Petition, the IVth Additional District Judge Banda-cum-Motor Accidents Claims Tribunal (in short the 'MACT') did not accept the plea of the insurer that there was violation of terms of the policy issued to Jagdish Prasad (hereinafter referred to as the 'insured'). The tractor could only be used for agricultural work. Since the same was used for carrying passenger, the insurer was not responsible to indemnify to any award and to pay any amount to the claimants. The Tribunal rejected this plea and held that in view of this Court's judgment in New India Assurance Company v. Satpal Singh & Ors. (2000(1) SCC 237), passenger travelling in a goods vehicle graciously was also entitled to claim compensation which was to be paid by the insurer. The High Court affirmed the view by the impugned order.;


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