Partly allowed

The New India Assurance Company Limited v. Ch. Subba Rao

Telangana HC9 Sept 2016MACMA/4540/2008

Case brief

AI extract

What is this about?

The Hon'ble court allowed the appeal partly. It held that the insurer cannot be exonerated from liability and is jointly liable with the R.T.C. and the owner of the bus, referencing Supreme Court views on joint liability.

What did the court decide?

Appeal partly allowed; liability fixed on owner and insurer along with R.T.C.; if R.T.C. withdrew deposited amount, entitled to reimbursement from insurer.

The New India Assurance Company Limited Vs Ch. Subba Rao — Insurance | Telangana HC (2016)

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HONOURABLE Dr. JUSTICE B.SIVA SANKARA RAO

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MACMA No.4540 of 2008

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JUDGMENT:

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Heard both sides and perused the material on record. The 4^th respondent herein who is the 1^st respondent to the claim petition, remained exparte before the Tribunal and it is the representation that no notice is necessary even impleaded in this appeal vide Meka Chakra Rao V. Y.Babu Rao¹ and the same is recorded. At request of both parties, the main appeal is taken up for hearing and disposal.

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The parties for the sake of convenience being referred to as arrayed before the Tribunal.

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The present appeal is filed by the claim petition 2^nd respondent/ insurer of the bus, which belongs to claim petition 1^st respondent, hired with claim petition 3^rd respondentA.P.S.R.T.C. The appellant is contending that the Tribunal ought to have exonerated the insurer from liability and fixing the liability only against R.T.C. and the owner of the vehicle if any and not against the insurer of the vehicle.

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Coming to the exoneration if any of the insurer and the owner from liability in fixing, law is fairly settled from the expression of the Apex Court in Managing Direct or, K.S.R.T.C V.

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1 2001(1) ALT 495 (DB)

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New India Assurance Co. Lt d² referring to Ut t ar Pradesh St at e Road Transport Corporat ion V. Kulsum³ , APSRTC, Hyderabad V. B.kanakarat nabai⁴ showing the joint liability of the insurer, the RTC and the owner.

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In the result, the appeal is partly allowed fixing the liability of owner and insurer also with the RTC and if any amount is paid or deposited so far by the A.P.S.R.T.C and not permitted to withdraw, the RTC is entitled to take back by filing cheque petition and if permitted to withdraw; as per the agreement between the RTC and the owner of the bus, entitled to be reimbursed from the insurance company. In all other respects, the award of the Tribunal holds good. There shall be no order as to costs.

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