NATIONAL INSURANCE CO. LTD. vs KAUSHALAYA DEVI .

The Supreme Court addressed the issue of compensation under Section 166 of the Motor Vehicles Act, 1988, following a fatal accident involving Kishan Lal. The Court upheld the Tribunal's finding that the driver was negligent, but noted the insurance company's claim that the deceased was a gratuitous passenger and the driver lacked a valid license. The Court affirmed the High Court's order to release the compensation amount to the claimant while allowing the insurance company to recover it from the vehicle owner, establishing that the deceased's status as a passenger did not negate the right to compensation under the Act.