MANUARA KHATUN & ORS. versus RAJESH KR. SINGH & ORS.

MANUARA KHATUN & ORS. versus RAJESH KR. SINGH & ORS.

The Supreme Court held that given the marked similarity of facts with Saju P. Paul's case and consistent earlier decisions, the insurer of the offending vehicle (United India Insurance Co. Ltd.) must pay the awarded compensation to the claimants and then recover the awarded amount from the insured owner of the offending vehicle in execution proceedings, applying the 'pay and recover' principle.

Parties
Appellant: Manuara Khatun & Ors.; Respondent: Rajesh Kr. Singh & Ors.
Jurisdiction
India
Judgment Date
21 February 2017
Procedural Posture
Civil Appeal / Final Appellate Decision
Outcome
appeals allowed
Legal Topics
Motor Vehicles Act Compensation, Insurance Liability, Pay and Recover Principle
Tort Law Motor Accident Claims Motor Vehicles Act Compensation Insurance Liability Pay and Recover Principle

Case Brief

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Parties

Manuara Khatun & Ors.

Appellant

Rajesh Kr. Singh & Ors.

Respondent

Procedural Posture

Civil Appeal / Final Appellate Decision

Legal Issues

  1. 1 Whether the insurer of the offending vehicle is liable to pay compensation for gratuitous passengers and then recover from the insured owner.
  2. 2 Whether the 'pay and recover' principle applies in cases where victims are gratuitous passengers.

Ratio Decidendi

The Supreme Court held that given the marked similarity of facts with Saju P. Paul's case and consistent earlier decisions, the insurer of the offending vehicle (United India Insurance Co. Ltd.) must pay the awarded compensation to the claimants and then recover the awarded amount from the insured owner of the offending vehicle in execution proceedings, applying the 'pay and recover' principle.

Court Disposition

appeals allowed

Orders

  • Impugned order modified to direct respondent No. 3 (United India Insurance Company Ltd.) to pay the awarded sum to appellants (claimants).
  • Respondent No. 3 thereafter entitled to recover the entire paid awarded sum from the owner (insured) of the offending vehicle (Tata Sumo) in these proceedings by filing execution application against the insured.