NEW INDIA ASSURANCE CO. LTD. versus BISMILLAH BAI & OTHERS

Citation: [2009] 5 S.C.R. 14 · Decided: 20-03-2009 · Supreme Court of India · Bench: S.B. SINHA, P. SATHASIVAM · Disposal: Appeal(s) allowed
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Judgment (excerpt)

[~!009] 5 S.C.R. 14 
NEW INDIA ASSURANCE CO. LTD. 
\ 
A 
v. 
BISMILLAH BAI & OTHERS 
(Civil Appeal No.1799 of 2009) 
B 
MARCH 20, 2009 
[S.B. SINHA AND P.SATHASIVAM, JJ.] 
MOTOR VEHICLES ACT, 1988: 
c 
s. 166 rlw s.140- Liability of insurer- Collision of Jeep 
and Truck - Person sitting in Jeep died - Truck not insured 
- Petition for claim - Tribunal holding Truck driver guilty of 
rash and negligent driving - Compensation awarded - Insurer 
of Jeep exonerated - High Court setting aside the part of 
D award exonerating the Jeep and making insurer also liable 
....-
for payment - HELD: High Court having not reversed the 
> 
finding of Tribunal that .Jeep was not guilty, it could not have 
fastened liability on insurer of Jeep - Besides, Insurance 
Company cannot be held liable in view of the decision of the 
E Court* - Accordingly, judgment of High Court set aside. 
*Oriental lnsuranc19 Company Limited v. Sudhakaran 
K. V. & Ors. (2008) 7 SC:C 428, relied on. 
':aise Law Reference: 
F 
(2008) 1 sec 428 
relied on 
para 12 
-1 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
1799 of 2009. 
G 
From the Judgment & Order dated 7.02.2006 of the High 
Court of Madhya Pradesh at Indore in M.A. No. 1377/2003. 
Dr. Manish Singhvi for P.V. Yogeswaran for the Appellant. 
H 
14 
NEW INDIA ASSURANCE CO. LTD. v. BISMILlAH BAI & 
15 
ORS. 
The following Order of the Court was delivered: 
A 
ORDER 
Leave granted. 
The Insurance Company is before us, aggrieved by and 
B 
dissatisfied with the judgment and order dated 07th February, 
2006 passed by a Division Bench of the High Court of Madhya 
Pradesh, Indore Bench, Indore in M.A. No.1377 of 2003, 
whereby and whereunder the High Court has modified the 
judgment of the Motor Accident claims Tribunal, Indore (for short c 
'the Tribunal') exonerating the Insurance Company- appellant 
herein from paying any amount of compensation passed in 
Claim Case No. 285 of 1997 awarding a total sum of 
Rs.3, 12,000/- with interest to the claimants for the death of one 
Israel, in a motor vehicle's accident holding that the Insurance 
D 
J 
Company is liable to pay the compensation to the claimants. 
Facts of the case giving rise to this appeal are: 
The deceased-Israel was travelling in a Jeep bearing 
No.MPA-09-1658 on 26.08.1995. The said Jeep collided with 
E 
a truck bearing No.MPF 07158 anctlsrael died of the injuries 
suffered by his at the site of accident. HisJamily members filed 
an application under Section 166, 140 of the Motor Vehicles 
Act (for short 'the Act') before the Tribunal for compensation. 
I 
The appellant raised a contention in the said proceeding 
F 
that since the driver of the jeep was not responsible for causing 
the said accident, it was not liable to pay any compensation to 
the claimants. 
The Tribunal by reason of the afore"!entioned award, inter G 
a/ia, held in paras 22 & 23 as under: 
... 
"22. Therefore due to want of averments of Petitioners in 
the application and from the certified copy of charge sheets 
Ex.P-1 to Ex.P-5 produced by the Petitioners, the 
H 
A 
B 
c 
16 
SUPREME COURT REPORTS 
(2009] 5 S.C.R. 
Petitioners remained successful in proving that accident 
occurred due to rash and negligent driving of truck by 
opposite party No.4. 
23. Therefore on the basis of evidence produced, the 
Petitioners remaim~d successful in proving their case 
against opposite pa11y No.3 and 4 in lieu of opposite party 
No.1 and 2, and as per the record the jeep owner Raees 
Khan and Insurance company cannot be held accountable 
to pay the compensation amount as the driver of jeep 
lsraeel was not driving his jeep rashly and negligently and 
he had no fault." 
It was also held by the Tribunal that as the Insurance 
Company is not held accountable for payment of compensation 
amount, it is entitled to receive the amount of Rs.25,000/-, 
D deposited with the Tribunal by an interim order, from the 
claimants with interest at the rate of 9% per annum. However, · 
an award for a sum of Rs.3, 12,000/- was passed against the 
driver and owner of the truck in question. 
E 
Claimants, however, preferred an appeal against the said 
award. 
' 
The High Court by mason of the impugned judgment set 
aside that part of the order of the Tribunal whereby the appellant 
herein was exonerated from payment of any liability for 
F reimbursement of the claim so far as the driver and owner of 
G 
H 
the jeep were concerned, stating: 
"7. So far as finding in relation exonerating of Insurance
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