MALLAMMA (DEAD) BY L.RS. versus NATIONAL INSURANCE CO. LTD. & ORS.

Citation: [2014] 4 S.C.R. 804 · Decided: 07-04-2014 · Supreme Court of India · Bench: P. SATHASIVAM · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
B 
c 
[2014] 4 S.C.R. 804 
MALLAMMA (DEAD) BY L.RS. 
v. 
NATIONAL INSURANCE CO. LTD. & ORS. 
(Civil Appeal No. 1391 of 2009) 
APRIL 07, 2014 
[P. SATHASIVAM, CJI, S.A. BOBDE AND 
N. V. RAMANA, JJ.] 
MOTOR VEHICLES ACT, 1988: 
s. 157 - Deemed transfer of insurance policy - Death of 
driver of tractor in an accident - Ownership of tractor 
transferred during validity of insurance policy and accident 
took place during said period - Held: Deceased workman was 
D in the course of employment of second respondent in whose 
name ownership of vehicle stood transferred and said vehicle 
was covered under a valid insurance policy -- High Court 
ought not have simply brushed aside the decision of 
Commissioner fastening joint liability on Insurance Company, 
E in the light of deeming provision contained in s. 157 (1). 
The instant appeal arose out of the claim-application 
filed before the Workmen's Compensation Commissioner 
by the dependants of a driver who, while in the 
employment of respondent no. 2, died as a result of over 
F turn of the tractor he was driving. The Commissioner 
allowed the claim petition. However, the High Court held 
that the original owner of the tractor was one "G", and 
excluded the liability of respondent no.1-lnsurance 
Company on the ground that the contention of deemed 
G transfer of the insurance policy in favour of respondent 
no. 2 by virtue of s. 157 of the Motor Vehicles Act, 1988 
was not urged before the Commissioner. 
Allowing the appeal, the Court 
H 
804 
MALLAMMA (DEAD) BY L.RS. v. NATIONAL 
INSURANCE CO. LTD. & ORS. 
HELD: 
805 
From the finding recorded by the Commissioner, it 
can be discerned that on the date of accident, the 
ownership of the tractor stood transferred to respondent 
A 
no. 2. Besides, the 'Schedule of Premium' shows that an 
B 
amount of Rs. 15/- has been paid as premium "for LL. to 
persons employed in connection with the operation and/ 
or loading of vehicle (IMT 19)". Thus, this Court is of the 
considered view that as on the date of accident the 
deceased workman was in the course of employment of 
second respondent in whose name the ownership of the 
C 
vehicle stood transferred and the said vehicle was 
covered under a valid insurance policy, the High Court 
ought not have simply brushed aside the decision of the 
Commissioner fastening joint liability on the Insurance 
Company in the light of the deeming provision contained 
D 
ins. 157 (1)of the M.V. Act. The judgment passed by the 
High Court is set aside and that of the trial court restored. 
[para 14, 15 and 16] [810-C-G] 
G. Govindan Vs. New India Assurance Co. Ltd. 1999 (2) 
E 
SCR 476 = (1999) 3 SCC 754 - referred to. 
Case Law Reference: 
1999 (2) SCR 476 
referred to 
para 10 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
1391 of 2009. 
From the Judgment and order dated 10.08.2005 of the 
High Court of Karnataka Bangalore in MFA No. 3842 of 2003 
0f'/CA). 
V.N. Raghupathy for the Appellants. 
M.K. Dua, Kishore Rawat for the Respondents. 
The Judgment of the Court was delivered by 
F 
G 
H 
806 
SUPREME COURT REPORTS 
[2014] 4 S.C.R. 
A 
N.V. RAMANA, J. 1. This appeal by special leave is 
directed against the impugned judgment and order dated 10th 
August, 2005 passed by the High Court of Karnataka in M.F.A. 
No. 3842 of 2003 whereby the High Court partly allowed the 
appeal preferred by the Respondent No. 1-National Insurance 
B Company discharging it from the liability of payment of 
compensation to the claimants- Appellants. 
2. The brief facts of the case leading to this appeal are 
that on 3rd April, 1997 at about 1.00 p.m., when Honniah @ 
C Dodda Thimmaiah was returning from the field driving a tractor 
with the sand load on the trailor, the tractor overturned and 
Honnaih @ Dodda Thimmaiah died owing to the injuries 
sustained in the accident. Appellants herein are the claimants-
legal representatives of the deceased Honniah @ Dodda 
Thimmaiah. The tractor involved in the accident had the 
D registration number KA 18/717-718 and the tractor was 
originally registered in the name of one Gangadhara 
(Respondent No. 3) and the s::im~ was insured w!th the 
Respondent No. 1 while the deceased was employed as a 
E 
driver with the Respondent No. 2-Jeeva Rathna Setty. 
3. On 4th September, 1997, the legal representatives of 
the deceased, filed an application before the Commissioner 
for Workman's Compensation, Chickmagalur (hereinafter 
referred to as "the Commissioner") claiming compensati

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