RAMESH KUMAR versus NATIONAL INSURANCE CO. LTD. AND ORS.

Citation: [2001] SUPP. 1 S.C.R. 679 · Decided: 17-08-2001 · Supreme Court of India · Bench: AJAY PRAKASH MISRA · Disposal: Disposed off

Judgment (excerpt)

RAMESH KUMAR 
v. 
NATIONAL INSURANCE CO. LTD. AND ORS. 
AUGUST 17, 2001 
[A.P. MISRA AND U.C. BANERJEE, J.J.] 
Motor Vehicles Act 1939/Motor Vehicles Act 1988 (as amended in 
1994)-Section 95/Section 147. 
A 
B 
Compensation-Liability of insurance company-On account of death C 
or bodily injury, of the gratuitous passengers, including owner of the goods 
or his representatives travelling in a goods vehicle-Liability under three 
categories-First under the 1939 Act as amended in 1969-Second under 
the 1988 Act prior to its amendment in 1994-Third under the 1988 Act 
pursuant to its amendment in 1994-Two category of cases dealt with-Held, 
under first category cases insurance company not liable under section 95 (/) D 
(b) proviso (i) and (ii) as the vehicle involved is a goods vehicle-Liability 
rests on the owner of the goods vehicle-Under third category cases claim 
confined only to the owner or his representatives and not to gratuitous 
passengers-Thus, Insurance Company liable only for the owner or his 
representatives under section 147 (I) (i) and (ii)-Second category cases E 
decided separately. 
Constitution of India 1950 
Art.136-New Plea-Raising of-Held, cannot be raised unless 
foundation laid in the pleading. 
F 
In these matters, the common question involved was as regards the 
liability of payment of compensation by Insurance Company under the Motor 
Vehicles Act on account of death or injury to either gratuitous passengers, 
owner or his representatives while travelling in a goods vehicle. On appeal, 
the cases were classified under three categorise, the first category arose G 
under the Motor Vehicles Act 1939 as amended in 1969, second category 
under the Motor Vehicles Act, 1988 prior to its amendment in 1994 and the 
third category under the Motor Vehicles Act, 1988 pursuant to its amend1itent 
in 1994. The first and third category cases were dealt under the present 
appeals. 
679 
H' 
680 
SUPREME COURT REPORTS [2001] SUPP. 1 S.C.R. 
A 
Claimants under the first category cases contended that the insurance 
company is liable to pay· compensation under proviso (i) and (ii) of Section 
95(1) (b) of the Motor Vehicles Act, 1939 even though the vehicle involved 
was a goods vehicle. But the insurance company denied their liability. 
Claimants under the third category of cases contended that ,the 
B insurance company is liable to pay the compensation under section 147(1) 
(i) and (ii) of the Motor Vehicles Act, 1988. 
Disposing of the appeals, this Court 
HELD: l.l Under the first category of cases vi:z. those arising under 
C the 1939 Act, the insuarance company is not liable to pay compensation to 
the claimants on account of the death or bodily injury of the gratuitous 
passengers including owner or his representative of the goods, travelling in 
a goods vehicle. The liability is on the owner of the goods vehicle. 1684-C, D) 
Mallawwa (Smt.) and Ors. v. Oriental Insurance Co. Ltd. and Ors., 
D 11999) I sec 403, relied on. 
1.2. In case insurance company had made part or full payment towards 
such compensation awarded, the same shall not be recovered from the claimant 
but is recoverable by the insurance company from the owners. In case the 
amount has been withdrawn by the claimants on furnishing any security, the 
E said security shall stand discharged. In case no payment has been made by 
the claimant, the owners of the vehicles should pay the awarded compensation 
to the claimant within a period of three mon!hs from today. 1684-D, El 
2.1. Section 147 (I) (i) and (ii) of the Motor Vehicles Act 1988 holds 
F the insurance company liable to pay the compensation both for the owner and 
his representative and also for the gratuitous passengers travelling in a 
goods vehicle. But under the third category of cases the claimants have 
confined their claim only for the owner or his representatives who were 
travelling in a goods vehicle and not for the gratuitous passenger. Therefore, 
insurance company is liable to pay the compensation for the deceased or 
G injured persons travelling in a good carriage, who were either the owners 
or their representatives. 1684-G, H; 685-CI 
New India Assurance Company v. Satpal Singh and Ors., 1200011 SCC 
237, relied on. 
H 
2.2. Any compensation or part of it not paid shall be paid to the 
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RAMESH KUMAR v. NATIONAL INSURANCE CO. LTD. 
681 
claimant by the insurance company within eight weeks of the order. On such A 
amount being withdrawn by the claimant which was depo

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