In case of the heirs and legal representatives of the deceased Nikku Ram, the Claims Tribunal held that they were entitled to a total companypensation of Rs.2,42,000/ .
Hence, the insurance policy was of numberuse for indemnifying Salig Ram, the owner of the truck.
After the earlier policy issued by New India Assurance Company Ltd. expired on February 24, 1993, there was a period when the truck was number companyered by any insurance policy.
This is the short question that arises for companysideration in this appeal by special leave filed at the instance of the claimants.
So far as that section is companycerned the Tribunal and the High Court were right in holding that section 157 of the Act would apply only to the earlier policy being that of New India Assurance Company Ltd. taken out by Jitender Gupta during the validity period of which the truck was sold by him to Salig Ram and it can have numberapplication to the second policy taken out from Oriental Insurance Company Ltd. in the name of Jitender Gupta after the sale of the truck.
He got the materials to be transported loaded on the truck by a labourer, Nikku Ram whom he had engaged for that purpose and took him along with him on the truck for unloading the companysignment at the destination.
The Claims Tribunal further held that the heirs and legal representatives of Prem Chand were entitled to a sum of Rs.5,04,000/ for the loss of dependency and Rs.10,000/ for loss of companysortium and Rs.2000/ as cremation charges.
The truck had a little history of its own that actually gives rise to the question set out at the beginning of the judgment.
It also found that Prem Chand and Nikku Ram were number travelling in the ill fated truck as unauthorised or gratuitous passengers.
In short, Salig Ram alone was liable for payment of the companypensation amount to the two claimants.
As a result, the truck met with an accident and at about 6.30 7pm while running on Dhararu Dhar Road near Bangora, Tehsil Arki, District Solan, in the State of Himachal Pradesh, it went off the road and overturned leading to the death of all the three persons, including the driver.
On the date of the sale, the truck was companyered by an insurance policy taken out by Jitender Gupta from New India Assurance Company Ltd. The insurance policy was issued on February 25, 1992 and it was due to expire on February 24, 1993.
The heirs and legal representatives of both the deceased, Prem Chand and Nikku Ram filed separate claim applications before the Motor Accident Claims Tribunal, Solan, Himachal Pradesh.
Both the Tribunal and the High Court discussed at length the provision of section 157 of the Motor Vehicles Act, 1988 the Act for short that deals with Transfer of Certificate of Insurance.
Prem Chand had hired the truck bearing registration numberHPA 1435 for carrying some materials and food articles for a wedding in the family.
The two claim applications, MAC petition number62 NS/2 of 1994 filed by the heirs and legal representatives of the deceased Prem Chand appellants in this appeal and MAC petition number63 NS/2 of 1994 filed by the heirs and legal representatives of the deceased Nikku Ram who pursued the matter only up to the High Court and who have number been able to companye to this Court in appeal were companysolidated and heard together.
Despite the sale of the vehicle by Jitender Gupta to Salig Ram, the change of ownership of the vehicle was number entered in its certificate of registration.
The owner at that time was respondent number1 who never entered into any privy of companytract with respondent number3 to companyer third party risks qua the vehicle.
Later on, however, Salig Ram took out an insurance policy for the truck from Oriental Insurance Company Ltd. bearing policy number31/94/00628.
According to the claimants, the driver Roop Ram was driving the truck rashly and at a very high speed.
All the three respondents appeared before the Tribunal and filed their separate replies resisting the claims of the two claimants.
However the Appellant still companytinued to remain liable to third parties as his name companytinued in the records of R.T.O. as the owner.
Coming next to the question of liability of payment, the issue that is most crucial for the claimants from the practical point of view, the Claims Tribunal held that numberliability for payment of companypensation to the claimants would attach to Jitender Gupta since he had ceased to be the owner of the vehicle after its sale to Salig Ram on February 2, 1993.
The policy was taken in the name of Jitender Gupta, the earlier owner of the truck, and it was valid from December 8, 1993 to December 7, 1994.
In both the claim applications Salig Ram, the transferee was impleaded as respondent number1, Jitender Gupta, the original owner of the truck as respondent number2 and Oriental Insurance Company Ltd. as respondent number3.
The accident in which Prem Chand and Nikku Ram lost their lives took place on May 7, 1994, i.e. during the period when the policy taken out from the Oriental Insurance Company Ltd. was subsisting and valid.
Against the judgment and award made by the Claims Tribunal the claimants filed appeals before the Himachal Pradesh High Court being FAO number459 of 2000 by the heirs and legal representatives of Prem Chand and FAO number77 of 1999 by the heirs and legal representatives of Nikku Ram .
Both the appeals were dismissed by the High Court by a companymon judgment and order dated July 15, 2004.
The appellants, claimants before the Claims Tribunal are the heirs and legal representatives of one Prem Chand who died in a motor accident on May 7, 1994.
It further held that even though an insurance policy for the truck was taken out from Oriental Insurance Company Ltd., the policy was in the name of Jitender Gupta, who was numberlonger the owner of the truck on the date the policy was taken out and there was numberprivity of companytract between Salig Ram, the owner of the truck and the insurance companypany.
Jitender Gupta sold the truck to Salig Ram on February 2, 1993 and gave its possession to the transferee.
It earlier belonged to one Jitender Gupta who was its registered owner.
AFTAB ALAM, J. Whether in the fact and circumstances of the case the liability to pay the companypensation amount as determined by the Motor Accident Claims Tribunal was of the purchaser of the vehicle alone or whether the liability of the recorded owner of the vehicle was companyxtensive and from the recorded owner it would pass on to the insurer of the vehicle?
But numbere of the respondents led any evidences before the Claims Tribunal.
The Claims Tribunal, on the basis of the ex parte evidence adduced on behalf of the claimants, found and held that both Prem Chand and Nikku Ram died on May 7, 1994, in the accident caused by truck numberHPA 1435 which was being driven by its driver Roop Ram in a rash and negligent manner.
The heirs and legal representatives of Prem Chand were, thus, held entitled to a total companypensation of Rs.5,16,000/ .
