Holding

The Motor Vehicles Act, 1988 does not create a statutory liability for insurers to indemnify owners for death or injury of passengers travelling in a goods carriage, and therefore the insurers are not liable.

Summary

The case concerned several accidents in which passengers, often paying a nominal fare, were travelling in lorries classified as goods carriages. Claimants sought compensation from the insurers of the vehicle owners under Section 147 of the Motor Vehicles Act, 1988, arguing that the insurers were liable for death or injury of such passengers. The Supreme Court examined the definition of "goods carriage" and the scope of compulsory third‑party coverage, noting that the 1988 Act (and its 1994 amendment) expressly limits coverage to drivers, conductors of public service vehicles and employees covered under the Workmen's Compensation Act, with no provision for passengers in goods carriages. Relying on earlier decisions such as Satpal Singh and Asha Rani, the Court held that the Act does not impose a statutory duty on owners to insure passengers in goods vehicles, and consequently insurers are not liable for their deaths. The Court set aside the High Court judgments that had applied the Satpal Singh ratio and allowed the appeals of the insurance companies, dismissing the claimants' petitions.

Issues considered

Whether Section 147 of the Motor Vehicles Act, 1988 (pre‑ and post‑1994 amendment) imposes liability on insurers for death or injury of passengers travelling in a goods carriage.
Whether a person travelling in a goods vehicle as a gratuitous passenger or as the owner of the goods is covered under the compulsory third‑party insurance mandated by the Act.
Interpretation of the terms "goods carriage", "passenger", and "owner of goods" in the context of insurance liability.

Legislation cited

Subjects

Motor Vehicles ActSection 147insurance liabilitygratuitous passengergoods carriagethird‑party insuranceworkmen's compensationowner of goodspassenger liability

Judgment

NATIONAL INSURANCE CO. LTD. A
v.
CHOLLETI BHARATAMMAAND ORS.

OCTOBER 12, 2007
B
[S.B. SINHA AND HARJIT SINGH BEDI, JJ.)

)'-
Motor Vehicles Act, 1988: s.147 (before and after amendment)-
Death or injuries suffered by gratutious passengers travelling in goods
carriage-Liability ofinsurer to indemnifY the owner ofgoods carriage c
in respect ofdeath/injury ofpassengers-Held: Not liable.

The prime question involved in all these appeals is regarding
liability ofthe insurance company to indemnity the owner ofthe vehicle
in respect of death of passengers travelling in goods carriage. D

·InCA@SLP(c)Nos. 7237-39/2003,theclaimantsweretravelling
in a lorry which met with an accident. Tribunal allowed their claim
petitions. High Court dismissed the appeal of insurance company.
Allowing the appeal, the Court E

HELD: 1. Carrying of passengers in a goods carriage is not
contemplated in the Motor Vehicles Act. Even compulsory coverage
in respect of drivers and conductors of public service vehicle and
employees carried in goods vehicle is limited to liability under the F
> }'·
Workmen's Compensation Act, 1923. There is no reference to any
passenger in "goods carriage". The inevitable conclusion, therefore,
is that provisions of the Act do not e_njoin any statutory liability on the
owner of a vehicle to get his vehicle insured for any passenger travelling
in a goods carriage and the insurer would have no liability therefor. G
[Para 11] [539-D,E,F]
~ ~

New India Assurance Co. Ltd v.Asha Rani and Ors., [2003} 2 SCC
223; National Insurance Co. Ltd v. Baljit Kaur & Ors., [2004) 2 SCC 1;
531 H
\
532 SUPREME COURT REPORTS [2007] 11 S.C.R.
... •
A National Insurance Co. Ltd v. Bommithi Subbhayamma & Ors., [2005)
12 SCC 243; New India Assurance Co. Ltd v. Vedwati & Ors., (2007) 3
SCALE 397 and Oriental Insurance Co. Ltd v. Brij Mohan & Ors., (2007)
7 SCALE 753, relied on.

B New India Insurance Co. v. Satpal Singh & Ors., [2000) 1 SCC
237 and Ramesh Kumar v. National Insurance Co. Ltd & Anr., [2001] 6
sec 713, referred to.
~-

In CA@SLP(c) Nos.7241-43/2003, petition was filed claiming
compensation on death of deceased who had paid a sum of Rs.20/- for
c travelling in the lorry. Tribunal held insurance company liable. On appeai
High Court held that all insurance policies covering third party risks
would not exclude gratuitous passenger.
Dismissing the appeal, the Court
D
HELD: The owner ofthe goods means only the person who travels
in the cabin of the vehicle. The High Court had proceeded on the basis ~
that they were gratuitous passengers. The admitted plea of the
respondents themselves was that the deceased had boarded the lorry
and paid an amount of Rs.20/- as transport charges. It has not been
E
proved that the deceased was travelling in the lorry along with the driver
or the cleaner as the owner of the goods. Travelling with the goods itself
.does not entitle anyone to protection under Section 147 of the Motor
Vehicles Act. [Paras17and18) 541-E, F]
.p In CA @SLP(c) Nos. 724812003, twenty persons were travelling -.( ~
in a truck which met with an accident. Tribunal held that the insurer is
liable to pay compensation only to one non-fare paying passenger who
is owner of the goods carried in the truck. High Court dismissed the
appeal.
G
Dismissing the appeal, the Court
»-- '1
HELD: Out of twenty persons, it is the respondents having
preferred an appeal, at least the claimants-respondents are entitled to
compensation as the deceased was travelling as owner of the goods.
H

ii•·
NA TI ONAL INSURANCE CO. LTD. v. CHOLLETI 533
BHARATAMMA [SINHA, J.]
~
The Tribunal discussed the matter in great details. It is not in dispute A
that premium has been paid only for one person.
[Para 23] [543-F, G]

In CA @ SLP(c) Nos. 728812003, respondent was travelling as a
passenger in a lorry which met with an accident. Tribunal awarded B
compensation. High Court dismissed the appeal of insurance company.
Allowing the appeal, the Court
HELD: The submission of respondent that he was travelling as
the owner of goods is not correct in view of evidence of PW-2. c
[Paras 26] [544-D]
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 4845-
484 7 of 2007.
From the Judgment and final Order dated 13.11.2002 of the High D
Court of Judicature, Andhra Pradesh at Hyderabad in A A.O. Nos. 1387,
~ 1901 and 1923 of 1998.
WITH
C.A. Nos. 4848-4850, 4851 and 4852-4854 of 2007. E
Dr. Laxmi Shashtri, Kiran Suri, Kishore Rawat, M.K. Dua, Pramod
Dayal, Vishnu Mehra and B.K. Satija for the Appellant.
Dr. Sushil Balwada, Vidya K. Sagar, B.D. Sharma, Asha Gopalan
Nair, AV. Rao, Prabhakar Pranam and Venkateswara Rao Anumolu for p
r the Respondents.
The Judgment of the Court was delivered by
S. B. SINHA, J. 1. Leave granted in all the Special Leave Petitions.
2. The question involved in these appeals centres around the liability G
of the insurance company to indemnify the owner of the vehicle in respect
~ -" of death of passengers travelling in goods carriage. The dates of accident
being different, different provisions would apply. We would notice the law
operating in the field at the outset and apply the same in each case H
534
\
SUPREME COURT REPORTS [2007] 11 S.C.R.

~
A separately.
..
3. The relevant portion of Section 147 of the Motor Vehicles Act
(for short "the Act"), prior to its amendment, reads as under:
"Requirements of policies and limits ofliability.-(1) In order to
B comply with the requirements of this Chapter, a policy of insurance
may be a policy whi,ch-
(a)*** ~

(b) insures the person or classes of persons specified in the policy
c 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 any
property of a third party caused by a or arising out of the use of
D the vehicle in a public place;
(ii) ***
-~

Provided that a policy shall not be required-
(i) to cover liability in respect of the death, arising out of and in
E the course of his employment, of the employees 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, in
respect of the death of, or bodily injury to, any such employee-
F
(a)*** ~
' 4,

(b) ***
(c) if it is a goods vehicle, being carried in the vehicle; or
G
(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
)..
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
H
\

! NATIONAL INSURANCE CO. LTD. v. CHOLLETI 535
BHARATAMMA [SINHA, J.]
occurrence of the event out of which a claim arises ... " A

4. The said provision underwent an amendment in the year 1994
by Motor Vehicles Amendment Act, 1994 which reads as under :
"147 - Requirements of policies and limits of liability
B
(1) In order to comply with the requirements of this Chapter, a
policy of insurance must be a policy which-
(a)***
(b) insurer the person or classes of persons specified in the policy c
to the extent specified in sub-section (2)-
(i) agai.'1St any liability which may be incurred by him in respect of.
the death of or bodily injury to any person, including owner of,
the goods or his authorised representative carried in the vehicle],
or damage to any property of a third party caused by or arising D
out of the use of the vehicle in a public place;
(ii)***

5. In New India Insurance Co. v. Satpal Singh & Ors., [2000] 1
E
SCC 237, this Court proceeded on an assumption that the provisions of
1939 Act and the provisions of 1988 Act are in pari materia.
6. In Satpal Singh (supra), interpreting the provisions contained in
Sections 147 and 149 of the Motor Vehicles Act, this Court held:
F
" ... Hence, under sub-section (2), there is no upper limitation for
the insurer regarding the amount of compensation awarded in
respect of death or bodily injury of a victim of the accident. It is,
therefore, apparent that the limit contained in the old Act has been
removed and the policy should insure the liability incurred and cover G
injwy to any person including owner of the goods or his authorised
representative carried in the vehicle . The legislature has also taken
care of even the policies which were in force on the date, of
commencement of the Act by specifically providing that any poUcy
of insurance containing any limit regarding the insurer's liability shall H
536 SUPREME COURT REPORTS [2007] 11 S.C.R.

A continue to be effective for a period of four months from
commencement of the Act or till the date of expiry of such policy,
whichever is earlier. This means, after the said period of four months,
a new insurance policy consistent with the new Act is required to
be obtained .
B
11. The result is that under the new Act an insurance policy
covering third-party risk is not required to exclude gratuitous
passengers in a vehicle, no matter that the vehicle is of any type
or class. Hence the decisions rendered under the old Act vis-a-
vis gratuitous passengers are of no avail while considering the
c
liability of the insurance company in respect of any accident which
occurred or would occur after the new Act came into force."
7. In Ramesh Kumar v. National Insurance Co. Ltd. & Anr.,
[2001] 6 SCC 713, this Court categorized the cases arise out of the
D Motor Vehicles Act, 1939, stating:
"The first category of cases arise out of the Motor Vehicles Act, •
1939 (hereinafter referred to as ''the old Act"). The question raised
for this category is:
E 'Whether the insurance company is liable to pay the
compensation on account of the death or bodily injury of the
gratuitous passengers including the owner of the goods or his
representative, travelling in a goods vehicle under Section 95
of the said Act?'
F
The second category of cases arise out of the Motor Vehciles Act,
1988 (hereinafter referred to as "the new Act") prior to its
amendment in 1994. In this category also a similar question is
raised. The third category of cases also arises under the new Act
G but after its amendment by Act 54 of 1994. In this category also
the same question is raised."

8. The Act does not contemplate that a goods carriage shall carry a ;. . ~
large number of passengers with small percentage of goods as
considerably the insurance policy covers the death or injuries either of
H
\

j
NATIONAL INSURANCE CO. LTD. v. CHOLLETI 537
BHARATAMMA [SINHA, J.)
.)"

the owner of the goods or his authorized representative. A

9. Correctness of the decision in Satpal Singh (supra) came up for
consideration before a three Judge Bench of this Court in New India
Assurance Co. Ltd v. Asha Rani and Ors., [2003] 2 SCC 223.
In Asha Rani (supra), having regard to various definitions involving B
the legal question, it was held :
,,. "23. The applicability of the decision of this Court in Mallawwa
v. Oriental Insurance Co. Ltd, in this case must be considered
keeping that aspect in view. Section 2(35) of the 1988 Act does c
not include passengers in goods carriage whereas Section 2(25)
of the 1939 Act did as even passengers could be carried in a
goods vehicle. The difference in the definitions of "goods vehicle"
in the 1939 Act and "goods carriage" in the 1988 Act is significant.
By reason of the change in the definitions of the terminology, the D
legislature intended that a goods vehicle could not carry any
passenger, as the words "in addition to passengers" occurring in
the definition of goods vehicle in the 1939 Act were omitted.
Furthermore, it categorically states that "goods carriage" would
mean a motor vehicle constructed or adapted for use " solely for E
.. the carriage of goods". Carrying of passengers in a "goods
carriage", thus, is not contemplated under the 1988 Act.
24. We have further noticed that Section 14 7 of the 1988 Act
prescribing the requirements of an insurance policy does not contain
a provision similar to clause ( ii ) of the proviso appended to Section F
r 95 of the 1939 Act. The decision of this Court in Mallawwa case
must be held to have been rendered having regard to the
aforementioned provisions.
25. Section 147 of the 1988 Act, inter alia, prescribes compulsory G
coverage against the death of or bodily injury to any passenger of

- _.. "public service vehicle". Proviso appended thereto categorically
states that compulsory coverage in respect of drivers and
conductors of public service vehicle and employees carried in a
goods vehicle would be limited to the liability under the Workmen's H
538 SUPREME COURT REPORTS [2007] 11 S.C.R. \
A Compensation Act. It does not speak of any passenger in a "goods {

carriage".
26. In view of the changes in the relevant provisions in the 1988
Act vis-a-vis the 1939 Act, we are of the opinion that the meaning
B of the words "any person" must also be attributed having regard
to the context in which they have been used i.e. "a third party".
Keeping in view the provisions of the 1988 Act, we are of the
opinion that as the provisions thereof do not enjoin any statutory
'""(
liability on the owner of a vehicle to get his vehicle insured for any
c passenger travelling in a goods vehicle, the insurers would not be
liable therefor.
27. Furthermore, sub-clause (i) of clause (b) of sub-section (1) of
Section 147 speaks of liability which may be incurred by the owner
of a vehicle in respect of death of or bodily injury to any person
D or damage to any property of a third party caused by or arising
out of the use of the vehicle in a public place, whereas sub-clause
(ii) thereof deals with liability which may be incurred by the owner
of a vehicle against the death of or bodily injury to any passenger
of a public service vehicle caused by or arising out of the use of
E the vehicle in a public place.
.:.
28. An owner of a passenger-carrying vehicle must pay premium
for covering the risks of the passengers. If a liability other than the
limited liability provided for under the Act is to be enhanced under
F an insurance policy, additional premium is required to be paid. But
if the ratio of this Court's decision in New India Assurance Co.
....
v. Satpal Singh, is taken to its logical conclusion, although for such '
passengers, the owner of a goods carriage need not take out an
insurance policy, they would be deemed to have been covered
G under the policy wherefor even no premium is required to be paid."
10. The effect of 1994 amendment came up for consideration in
National Insurance Co. Ltd. v. Baljit Kaur & Ors., [2004] 2 SCC 1,
wherein this court following Asha Rani (supra) opined that the words
"injury to any person" would only mean a third party and not a passenger
;,.._
-
H
j
/
NATIONAL INSURANCE CO. LTD. v. CHOLLETI 539
BHARATAMMA [SINHA,J.]
travelling on a goods carriage whether gratuitous or otherwise. Th~ A
question came up for consideration again in National Insurance Co. Ltd
v. Bommithi Subbhayamma & Ors., [2005] 12 SCC 243 wherein uport
talcing into consideration a large number of decisions, the said view~
reiterated.
B
11. Yet again in New India Assurance Co. Ltd v. Vedwati & Ors.,
(2007) 3 SCALE 397 this Court held :
"13. The difference in the language of"goods vehicle" as appear
in the old Act and "goods carriage" in the Act is of significance. A
bare reading of the provisions makes it clear that the legislative C
intent was to prohibit goods vehicle from canying any passenger.,
This is clear from the expression "in addition to passengers" as ,
contained in definition of "good vehicle" in the old Act The position,
becomes further clear because the expression used is "good'
carriage" is solely for the carriage of goods. Carrying of passengers D
in a goods carriage is not contemplated in the Act. There is no
provision similar to Clause (ii) of the proviso appended to Section
95 of the old Act prescribing requirement of insurance policy. Even
Section 147 of the Act mandates compulsory coverage against
death of or bodily injury to any passenger of "public sezvice vehicle". E
The proviso makes it further clear that compulsory coverage in ,
respect of drivers and conductors of public service vehicle and ,
employees carried in goods vehicle would be limited to liability
under the Workmen's Compensation Act, 1923 (in short 'WC
Act"). There is no reference to any passenger in "goods carriage". F
14. The inevitable conclusion, therefore, is that provisions of the
Act do not enjoin any statutory liability on the owner of a vehicle
to get his vehicle insured for any passenger travelling in a goods
carriage and the insurer would have no liability therefor."
G
[See also Oriental Insurance Co. Ltd. v. Brij Mohan & Ors.,
(2007) 7 SCALE 753]
CA @ SLP (C) Nos. 7237-7239 of 2003
12. The claimants were traveling in a lorry. It was a goods carriage Fl
\
540 SUPREME COURT REPORTS (2007] 11 S.C.R.

A carrying goods like rice, tent hours articles, chairs, utensils and vegetables
required on the occasions of marriage. The marriage of one D. Bhaskar
was to take place. When the lorry reached Ali Nag3:f cross road at about
8.30 a.m., as a result of rash and negligent driving of the driver, the
accident took place ·as the lorry struck to a stationary truck. Several
B people suffered injuries. Two of them died. Several claim applications
were filed on behalf of the injured as also the dependents of the deceased.
The date of accident being 16.12.1993, the amendment carried out
in the year 1994 in Section 147 of the Motor Vehicles Act would not be
C applicable.
13. The Motor Accident Claims Tribunal, Nalgonda, by a judgment
and award dated 13 .11.1997 awarded various sums overruling the
defence of the appellant herein that they were unauthorized passengers.
The High Court, however, by reason of the impugneg judgment, relying
D on or on the basis of a decision of this Court in Satpal Singh (supra)
directed as under :
"The learned counsel for the Insurance Company submitted that
the issue involved in these appeals is squarely covered by the
decision of the Supreme Court in the case reported in New Indian
E
Assurance Company f.,td. v. Satpal Singh, 2000 ACJ. 1 wherein
their Lordships held that under the Motor Vehicles Act 1988 all
insurance Policies covering third party risks are not required to
exclude gratuitous passengers in the Vehicle though Vehicle is of
F
any type or class.
In view of the proposition oflaw down by the Supreme Court
in the decision stated supra, these appeals are dismissed. No
costs."
·G 14. Following the aforementioned principles, the impugned judgment
cannot be sustai!led which is set aside. The appeals are allowed
accordingly.
CA @ SLP (C) No. 7241-7243103
•H 15. In the aforementioned case, accident took place on 24.12.1993.
,t
NATI ON AL INSURANCE CO. LTD. v. CHOLLETI 541
BHARATAMMA [SINHA, J.]
Respondents herein filed a claim petition claiming compensation for the A
death of one Kota Venkatarao who had allegedly paid a sum of Rs.20/-
for travelling in the lony. The TribWlal held :
"In the absence of rebuttal evidence from the deceased and some
others travelled in the said vehicle in the capacity of owner of the B
luggage which was carried by them at the time of accident. It cannot
be said that it is a violation of the policy, since it is not fimdamental
breach so as to afford to the insurer to eschew the liability
altogether as per the decision reported in AIR 1996 Supreme
Court 2054."
c
16. The High Court, however, relying upon Satpal Singh (supra)
opined:
"This issue raised in this appeal is covered by the decision of the
Supreme Court in New India Assustance Co. Ltd v. Satpal D
Singh [2000] 1 SCC 237] wherein their Lordships held that lllder
the Motor Vehicles Act, 1988 all Insurance policies covering fuil.d
party risks are not required to exclude gratuitous passengers in the
vehicles though the vehicle is of any type or class. Following the
same, the appeal is dismissed. No order as to costs."
E
17. It is now well settled that the owner of the goods means only
the person who travels in the cabin of the vehicle.
18. In this case, the High Court had proceeded on the basis that
they were gratuitous passengers. The admitted plea of the respondents F
themselves was that the deceased had boarded the lorry and paid an
amount ofRs.20/- as transport charges. It has not been proved that the
deceased was travelling in the lony along with the driver or the cleaner
as the owner of the goods. Travelling with the goods itself does not entitle
anyone to protection under Section 147 of the Motor Vehicles Act. G
19. For the reasons aforementioned, this appeal is dismissed.
CA @ SLP (C) No. 7248103
20. The accident in this case took place on 3.1.1991. Twenty persons
, H
542 SUPREME COURT REPORTS [2007] 11 S.C.R.
j '(

A were travelling in the truck. The policy covered the risk only of the owner
of the goods. Before the learned Tribunal, it was contended that the risk
of the owners of the goods is covered by the policy. It was held :
"On a careful consideration of the various authorities cited by the_
learned counsels for both the parties, Section 147, 149 Rule 277(3)
B
- and 252 of Rules framed under M.V. Act I have no hesitation to
conclude that the ris~ of the owner of the goods is also covered
by the policy issued by the insurance companies, from the evidence
ofR.W.l who is no other than the employee o(R-2 as well as
terms ofEx.B-2 Policy, it is obvious that the risk of the owner of
c the goods is covered, but it is restricted only to one person as
owner of the goods. Thus, there can be no doubt that the owner
of the goods can travel in the goods vehicle and if they are involved
in the accident, their risk is covered subject to the terms and
conditions of the policy issued by the insurance companies.
D
21. The learned Tribunal, however, noticed:
" ... Thus, the claim form corroborate the testimony of the
petitioners that deceased or the injured as the case may be travelled
in the vehicle as owner of goods. But it is mentioned in Ex.B-3
E
claim form as well as in Ex.B 1 permit that the seating capacity of
the lorry is only '3' including driver and cleaner which would go
to show that only one passenger can travel in it. .. "
- -
22. Upon considering the evidences on record, it was held : "
F
"As the permitted seating capacity of the lorry is only '3' including ~·

the driver and cleaner and as only one non-fare paying passenger ""'
as owner of goods can travel in the cabin and as the deceased
has admittedly travelled in the cabin beyond seating capacity and
G contrary to the terms of the permit as well as Rule 252(2) of the
Motor Vehicles Act. I am of the view that R-2 cannot be fastened
- with the liability to pay compensation along with R-1 to all the
injured and legal representatives of deceased. At best it is liable
)..__
-
to pay compensation jointly and severally along wifti R-1 only in
H respect of one non-fare paying passengers, who is the owner of
t
NATIONAL INSURANCE CO. LTD. v. CHOLLETI 543
BHARATAMMA [SINHA, J.]
the goods. As per the endorsement l.M. T. l 4(b) unless additional A
premiwn is paid for the nwnber of persons who travelled in the lony,
as owners. I am of the view that R-2 cannot be fastened with
liability. Further all the petitioners and deceased cannot be deemed
to have travelled as owners of the paddy as the paqqy_ is said to·
.be in bags ~d orally kept in loose in the lorry and it is enough if B
any one of them have travelled in the lorry on behalf of all, as owner
of the lorry Rule 277(3) of A.P. Motor Vehicles Rules, clearly
shows that no person shall be carried in the goods vehicle except
as provided in the Rule under the statute and as the only person,
who are permitted to carry in goods vehicles are the owner of hirer C
or bona fide employee of owner of hirer and total nwnber of such '
persons, who could be carried in goods vehicles-is not more than
seven including the driver. As per Rule 252(2) person shall be
carried in the cab of the vehicle beyond the seating capacity as per
clause (2). No person shall be carried on the load or otherwise. D
Rule 4 empowers the R.T.A. to allow large nwnber of persons to
be carried. As the seating capacity of the lorry is only '3' as per
Ex.BI and B3 and as the risk of only owner of goods is covered
by Ex.B2 policy, whereas about 40 to 42 persons travelled in the
lorry by sitting on the load, which is not permitted and as there is E
no material to show that R. T.A. permitted carriage of more than
seating capacity but on the other hand the permit is cancelled. I
am in agreement with the contention of the learned counsel for the
respondent that it cannot be faste~ed wit4Jhe.Jiability. for..
compensation." F

23. The High Court, however, dismissed the appeals preferred by
the respondents relying upon Satpal Singh (supra). Submission of the
learned counsel appearing on behalf of the respondent is that within the
(
, aforementioned twenty persons, it is the respondents having preferred an G
appeal, this Court should hold that at least the claimants-respondents are
... - .."'. entitled to compensation as the deceased was travelling as owner of the
goods. The learned Tribunal discussed the matter in great details. It is not
--{ in dispute that premium has been paid only for one person.
24. In the facts and circumstances ofthis case, we are of the opinion H
"'""'
\-
\'

544 SUPREME COURT REPORTS (2007] 11 S.C.R.
'fl\
·I I-
A that the contention of the respondent should be accepted. This appeal is,
thus, dismissed.
CA @ SLP (C) Nos. 7288-7290103
25. In this case, the accident took place on 1.5 .1997. Indisputably,
B the respondent was travelling as a passenger. The Tribunal, while
detennining the issue as to whether the accident took place due to rash
and negligent driving of the first respondent-driver oflorry AEW 5199, "(
held:
" ... The lorry was overturned and caused the instantaneous death
c of four passengers. He received small injuries. He also deposed
that the accident took place due to the negligence of the driver of
the said lorry. On perusing his evidence I am satisfied that he is a
truthful witness. He was travelling in the crime vehicle along with
deceased along with his goods as per his evidence... "
D
26. The learned counsel appeari~g for the respondent, submitted that ~
from the aforementioned finding, it is evident that the respondent was
travelling as the owner of the goods. We do not think that the said
submission is correct. PW-2, in his evidence, stated:
E
"I am doing Tamarind business. I witnessed the accident which
took place about· 3 years back at about 6 AM. at Borrampalem
junction beyond Talluru. At the time of the accident I was in the
crime lorry by the side of the driver. Myself and 6 others were
F
carrying tamarind in that lorry belonging to us. We boarded the
lorry along with our load of tamarind at Dharamavaram to go to "{

Rajanagaram. We were selling the Tamarind at Rajanagaram in
retail by taking the tamarind there in our lorry from our village of
Dharmavaram."
G 27. The Tribunal; therefore, correctly recorded that according to
....
PW-2, he was travelling with his goods as owner thereof and not the
deceased.
>-- -.-

28. Shaik Shabbeer Pasha and Shaik Nazeer Pasha are the Driver
H and owner respectively of the lorry which was travelling to Rajahmundry
NATI ONAL INSURANCE CO. LTD. v. CHOLLETI 545
BHARATAMMA [SINHA,J.]
from Visakhapatnam. At Borrampalem, while trying to overtake another A
speeding lorry, the same turned turtle. Three persons who were travelling
in the vehicle had been killed. Claim for compensation were filed before
the Motor Accidents Claim Tribunal. The appellants therein opposed the
claim. Tribunal awarded compensation to the legal heirs of the deceased.
29. Challenging the legality of the award of the Tribunal, learned
B'
counsel for the appellant contended that the deceased were gratuitous
Y passengers and the policy did not cover their lives. Learned counsel also
submitted that the decision in Satpal Singh 's case (supra) being referred
to a Larger Bench in Asha Rani's case (supra), the same was not a C
binding authority.
30. While stating that the submissions of learned counsel for
insurance company could not be sustained, the High Court dismissed the
appeal of the insurance company following Satpal Singh (supra).
D
31. In view of the nature of evidence available before us, we have
no other option but to set aside the judgment. These appeals are,
therefore, allowed accordipgly. There shall be no order as to costs in each
case.
D.G. Appeals disposed of. E