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Charitable society can claim damages

A charitable society whose members have renounced the world and have no family can claim compensation if a member dies in a road accident under the Motor Vehicles Act. The society will be deemed to be the legal representative of the deceased member, the Supreme Court held last week in the appeal, Montfort Brothers vs United India Insurance Co.

According to the rules of the registered society, whatever a member, called 'brother', receives by way of salary, subsidies, gifts, pension or from insurance or other such benefits belongs to the community as by right and goes into the common purse. In this case, one of the brothers died in an accident in Aizawal when his jeep hit a Maruti Gypsy. The society demanded compensation, and the tribunal allowed it. However, the insurance company moved the Gauhati High Court which upset the order stating that the society had no locus standi. On appeal, the Supreme Court restored the tribunal's order.

Article referred: http://www.business-standard.com/article/opinion/suing-directors-for-loan-recovery-114020200781_1.html

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