N.M.KASLIWAL, J. - (1.) LEARNED Single Judge has referred the following question for decision by a larger bench: Whether after the decision of the Supreme Court in Motor Owner's Insurance Co. Ltd. v. Jadavji Keshavji Modi 1983 ACJ p. 507 the liability of the insurance company for the purpose of Sub-clause (4) of Section 95(2)(b)(ii) of the Motor Vehicles Act, 1939, continues to be limited to the extent of Rs. 10,000/- in the cases of passenger travelling in Cab and Rs. 5,000/- in the cases of passenger travelling in other vehicles or, Sub-clause (4) would give way to the above judgment and the liability would be governed by Sub-clauses (1), (2) and (3) depending upon the number of passengers for which the vehicle is registered ? Brief facts of the case are that on May 27, 1971 Taxi No. RJT 226 was coming from Ajmer to Jaipur and Fiat Car No. RJR 138 was going in the opposite direction from Jaipur to Ajmer. When the Fiat car reached about 9 Kms. ahead of Dudu near Parsoli village, the Taxi and the Fiat car collided in the middle of the road. The accident took place because of the rash and negligent driving of both the aforesaid vehicles. Shri Surendra Sharma, who was travelling in taxi died on the spot and one other person sitting in the taxi also died. Shri Balu Ram owner of the fiat car also died after 3-4 days due to the injuries, received by him and one Ram Kishan also received some injuries.
(2.) SHRI Ram Kishan injured and heirs of deceased Balu Ram filed separate claim petitions. The respondents Nos. 1, 2 and 3 being heirs of deceased Surendra Sharma filed a claim petition claiming Rs. 3,00,000/- by way of compensation. The Tribunal vide its award dated January 15, 1977, awarded a sum of Rs. 2,11,200/- as compensation to the claimants and Rs. 500/- as costs. Out of the aforesaid amount, Rs. 10,000/- were required to I* paid by respondent No. 5 M/s. New India Insurance Company Ltd., M.I. Road, Jaipur and rest of the amount was required to be paid by the appellant. Learned Tribunal fixed the liability of the Insurance Company to the extent of Rs. 10,000/- only under Section 95(2)(b)(4) of the Motor Vehicles Act, 1939 (hereinafter referred to as 'the Act'). The Supreme Court in Motor Owners' Insurance Co. v. Jadavji Keshavji Modi had taken the view that the expression "any one accident" in Section 95(2) of the Act is susceptible of the equally reasonable meanings or interpretations, if a collision occurs between a car and truck resulting in injuries to 5 persons, it is as such plausible to say that 5 persons were injured in one accident as it is to say that each of the 5 persons met with an accident. A bye stander-looking at the occurrence objectively will be right in saying that the truck and the car met with an accident or that they were concerned in one accident. On the other hand, a person looking at the occurrence subjectively like the one who is injured in the collision, will say that he met with an accident, and so will each of the 5 persons, who were injured. From their point of view, which is relevant point of view, "any one accident" means "accident to anyone". It was further observed that if the matter is looked from an objective point of view the insurer's liability will be limited to Rs. 20,000/- in respect of injuries caused to all the five persons considered enblock as a single entity since they were injured as a result of one single collision. On the other hand, if the matter is looked at subjectively as it ought to be the insurer's liability will extend to a sum of Rs 20,000/- in respect of the injuries suffered by each of the 5 persons since each met with an accident, though during the course of same transaction. It was thus held that if more than one person is injured during the course of same transaction, each one of the persons has met with an accident. In view of the aforesaid decision given by their Lordships of the Supreme Court difficulty arose in interpreting the provisions of Sub-clause (4) of Clause (b) of Sub-section (2) of Section 95 of the Act. Different views were expressed by different High Courts and in these circumstances, the above question has been referred to a larger bench by the learned Single Judge.
(3.) PRIOR to an amendment made by the Act 56 of 1969 which came into effect on March 2, 1970, the provisions of Section 95, Sub-sections (1) and (2) read as under: Section 95-(1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which- (a) is issued by a person who is an authorised insurer (or by a co-operative society allowed under Section 108 to transact the business of an insurer); and (b) insures the person or classes of persons specified in the policy to the extent specified in Sub-section (2) against any liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the vehicle in a public place: Provided that a policy shall not be required- (i) to cover liability in respect of the death, arising out of and in the course of his employment, of the employee of a person insured by the policy or in respect of bodily injury sustained by such an employee arising out of and in the course of his employment (other than a liability arising under the Workmen's Compensation Act, 1923 (8 of 1923), in respect of the death of or bodily injury to, any such employee- (a) engaged in driving the vehicle, or (b) if it is a public service vehicle, engaged as a conductor of the vehicle or in examining tickets on the vehicle, or (c) if it is a goods vehicle, being carried in the vehicle; or (ii) except where the vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment, to cover liability in respect of the death of or bodily injury to persons being carried in or upon or entering or mounting or alighting from the vehicle at the time of the occurrence of the event out of which a claim arises; or (iii) to cover any contractual liability. (2) Subject to the proviso to Sub-section (1), a policy of insurance shall cover any liability incurred in respect of anyone accident upto the following limits, namely,- (a) where the vehicle is a goods vehicle, a limit of twenty thousand rupees in all, including the liabilities, if any, arising under the Workmen's Compensation Act, 1923 (8 of 1923) in respect of the death of, or bodily injury to, employees (other than the driver), not exceeding six in number, being carried in the vehicle); (b) where the vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment, in respect of persons other than passengers carried for hire or reward, a limit of twenty thousand rupees; and in respect of passengers a limit of twenty thousand rupees in all, and four thousand rupees in respect of an individual passenger, if the vehicle is registered to carry not more than six passengers excluding the driver or two thousand rupees in respect of an individual passenger, if the vehicle is registered to carry more than six passengers excluding the driver; (c) where the vehicle is a vehicle of any other class the amount of the liability incurred. After Act 56 of 1969 Sub-sections (1) and (2) of Section 95 read as under: Section 95-Requirements of policies and limits of liability- (1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which- (a) is issued by a person who is an authorised insurer (or by a co-operative society allowed under Section 108 to transact the business of an insurer), and (b) insures the person or classes of persons specified in the policy to the extent specified in Sub-section (2)- (i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person or damage to the property of a third party caused by or arising out of the use of the vehicle in a public place; (ii) against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place: Provided that a policy shall not be required- (i) to cover liability in respect of the death, arising out of and in the course of his employment, of the employee of a person insured by the policy or in respect of bodily injury sustained by such an employee arising out of and in the course of his employment (other than a liability arising under the Workmen's Compensation Act, 1923 (8 of 1923), in respect of the death of, or bodily injury to, any such employee- (a) engaged in driving the vehicle, or (b) if it is a public service vehicle, engaged as a conductor of the vehicle or in examining tickets on the vehicle, or (c) if it is a goods vehicle, being carried in the vehicle, or (ii) except where the vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment, to cover liability in respect of the death of or bodily injury to persons being carried in or upon or entering or mounting or alighting from the vehicle at the time of the occurrence of the event out of which a claim arises, or (iii) to cover any contractual liability. Explanation-For the removal of doubts, it is hereby declared that the death of or bodily injury to any person or damage to any property of a third party shall be deemed to have been caused by or to have arisen out of, the use of a vehicle in a public place notwithstanding that the person who is dead or injured or the property which is damaged was not in a public place at the time of the accident, if the act or omission which led to the accident occurred in a public place. (2) Subject to the proviso to Sub-section (1), a policy of insurance shall cover any liability incurred in respect of any one accident up to the following limits, namely- (a) where the vehicle is a goods vehicle, a limit of (fifty) thousand rupees in all, including the liabilities, if any, arising under the Workmen's Compensation Act, 1923 (8 of 1923), in respect of the death of, or bodily injury to, employees (other than the driver), not exceeding six in number, being carried in the vehicle; (b) where the vehicle is a vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment,- (i) in respect of persons other than passengers carried for hire or reward, a limit of fifty thousand rupees in all; (ii) in respect of passengers,- (1) a limit of fifty thousand rupees in all where the vehicle is registered to carry not more than thirty passengers; (2) a limit of seventy-five thousand rupees in all where the vehicle is registered to carry more than thirty but not more than sixty passengers; (3) a limit of one lakh rupees in all where the vehicle is registered to, carry more than sixty passengers; and (4) subject to the limits aforesaid, ten thousand rupees for each individual passenger where the vehicle is a motor cab, and five thousand rupees for each individual passenger in any other case; (c) save as provided in Clause (d), where the vehicle is a vehicle of any other class, the amount of liability incurred; (d) irrespective of the class of the vehicle, a limit of rupees two thousand in all in respect of damage to any property of a third party. ;