Compulsory motor insurance coverage excludes gratuitous passengers in a tractor trolley, yet pay-and-recover relief may still apply.

Section 147 of the Motor Vehicles Act does not extend compulsory insurance coverage to a gratuitous passenger travelling in a trolley attached to a tractor used for non-agricultural work, so the insurer was not liable on the merits where earth was being carried to a brick kiln and the claimant was only a passenger. However, applying the pay-and-recover approach to do complete justice in a case of grievous injury, the Court directed the insurer to satisfy the award first and recover the amount from the tractor owner.

---

---

Issues: (i) whether the insurer was liable under Section 147 of the Motor Vehicles Act, 1988 for injuries sustained by a passenger travelling in a trolley attached to a tractor used for non-agricultural purposes; (ii) whether, despite the insurer's non-liability on merits, the award could be directed to be satisfied by the insurer with liberty to recover the amount from the vehicle owner.

Issue (i): whether the insurer was liable under Section 147 of the Motor Vehicles Act, 1988 for injuries sustained by a passenger travelling in a trolley attached to a tractor used for non-agricultural purposes.

Analysis: The tractor was insured only for agricultural use, and the evidence showed that earth was being carried to a brick kiln, which was not agricultural work. The injured claimant was neither the owner nor the driver, but only a passenger in the trolley. On the construction of Section 147 as explained in the decisions governing gratuitous passengers in goods vehicles, the statutory cover did not extend to such a passenger.

Conclusion: The insurer was not liable on the merits of coverage; the claimant's presence in the trolley did not bring the case within compulsory insurance under Section 147.

Issue (ii): whether, despite the insurer's non-liability on merits, the award could be directed to be satisfied by the insurer with liberty to recover the amount from the vehicle owner.

Analysis: Although the insurer succeeded on the question of legal liability, the claimant had suffered grievous injuries and was a labourer. To do complete justice, the Court invoked its extraordinary power and followed the pay-and-recover approach recognised in earlier cases dealing with similar hardship.

Conclusion: The insurer was directed to satisfy the award in the first instance and was given liberty to recover the amount from the owner of the tractor and trolley.

Final Conclusion: The appeal succeeded in part on the question of liability, but the compensation award was maintained through a pay-and-recover direction in favour of the injured claimant.

Ratio Decidendi: Section 147 does not compel insurance coverage for a gratuitous passenger travelling in a trolley attached to a tractor used for a non-agricultural purpose, but the Court may, in an appropriate case, direct the insurer to pay first and recover the amount from the owner to do complete justice.

---