SATYA POOT MEHROTRA,RAJESH CHANDRA,J - (1.) THE present Appeal has been filed by the Insurance Company under Section 173 of the Motor Vehicles Act, 1988 against the award dated 22.5.2009 whereby Rs. 1,69,940/- with interest @ 6% per annum has been awarded as compensation to the claimants-respondents on account of the death of Wasim in an accident which took place on 23.4.2005 at around 4.00 a.m. in the morning wherein Canter No. UP23B-2043 collided with a Truck.
(2.) THE Motor Vehicles Accident Claims Tribunal framed five issues. Issue No.1 was in regard to the factum of accident having taken place on account of rash and negligent driving by the driver of the aforesaid vehicle, namely, Canter No. UP23B-2043. The Tribunal decided the said Issue in the affirmative. Issue No.2 was as to whether the vehicle in question was insured with the Insurance Company/ Appellant and as to whether the driver of the vehicle was having a valid and effective Driving License on the date of accident. The Tribunal held that the vehicle in question was insured with the Insurance Company/ Appellant on the date of the accident. However, it was held that the driver of the vehicle in question was not having valid and effective Driving License on the date of accident. Issue No. 3 was as to whether the Claim Petition was bad for non-joinder of necessary parties. The said Issue was decided against the opposite parties in the Claim Petition. Issue No.4 was as to whether the deceased was travelling in the vehicle in question as gratituous passenger in an unauthorized manner which was violative of the terms and conditions of the insurance policy. The Tribunal decided the said Issue in the affirmative in favour of the Insurance Company/ Appellant. It was held that the vehicle in question was being used for commercial purposes, and the same was against the terms and conditions of the insurance policy. Issue No.5 was as to whether the claimants-respondents were entitled to get compensation as against the opposite parties in the Claim Petition jointly or separately. It was held by the Tribunal that the claimants/ respondents were entitled for compensation amounting to Rs. 1,69,940/- with interest @ 6%. However, the compensation was not payable by the Insurance Company/ Appellant but was payable by Mahmood Hasan, owner of the vehicle in question-respondent no.3 herein. The Insurance Company/ Appellant has filed the present Appeal impugning the aforesaid award. We have heard Shri Dhananjay Awasthi, learned counsel appearing for the Insurance Company/ Appellant, and perused the record. The impugned award has, interalia, directed that even though the amount of compensation is not payable by the Insurance Company/ Appellant, the Insurance Company/Appellant would deposit the amount within 60 days of the award, and the Insurance Company/ Appellant would be entitled to recover the same from the owner of the vehicle in question, i.e., respondent no.3 herein. It is submitted by Shri Dhananjay Awasthi, learned counsel appearing for the Insurance Company/Appellant that having decided Issue Nos. 2 and 4 in favour of the Insurance Company/ Appellant, the Tribunal erred in directing the Insurance Company/ Appellant to deposit the amount of compensation and recover the same from the owner of the vehicle in question, i.e., respondent no.3 herein.
(3.) WE have considered the submissions made by Shri Dhananjay Awasthi, and we find ourselves unable to accept the same. Sub-section (5) of Section 147 of the Motor Vehicles Act, 1988 lays down as under: "147. Requirements of policies and limits of liability .- (1) to (4)................. (5) Notwithstanding anything contained in any law for the time being in force, an insurer issuing a policy of insurance under this section shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons." The above provision, thus, provides that an insurer issuing a policy of insurance under Section 147 of the Motor Vehicles Act, 1988 shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons. Section 149 of the Motor Vehicles Act, 1988, in so far as is relevant, provides as follows: "149. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks.-(1) If, after a certificate of insurance has been issued under sub-section (3) of Section 147 in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under clause (b) of sub-section (1) of Section 147 (being a liability covered by the terms of the policy) [or under the provisions of Section 163-A] is obtained against any person insured by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment-debtor, in respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments. (2) to (7)................." ;