UNITED INDIA INSURANCE CO LTD Vs. SHANTI BAI

JUDGEMENT

(1.) Being aggrieved by the award dated 23.8.1995 passed by the M.A.C.T., Dewas in Claim Case No. 9 of 1990 whereby the claim petition filed by respondent No. 1 has been allowed and the respondent Nos. 2 and 3 and appellant has been held liable for making payment of Rs. 40,000 along with interest at the rate of 12 per cent per annum, the present appeal has been filed.

(2.) Short facts of the case are that an accident took place on 23.8.1989 in which the husband of respondent No. 1 deceased Jagannath died who was sitting in the offending Tempo bearing registration No. MOU 1039 which was being driven by respondent No. 2, owned by respondent No. 3 and insured with appellant. A claim petition was filed by respondent No. 1 being the legal representative of deceased Jagannath. Claim petition was contested by appellant on various grounds including the ground that liability of the insurance company is limited. On the basis of the pleadings of the parties, learned Tribunal framed the issues, recorded the evidence and held the respondent No. 1 entitled for a sum of Rs. 40,000 along with interest at the rate of 12 per cent per annum and also on the ground that in other two claim cases which arose out of the same accident, the insurance company has settled the claim in compromise for a sum of Rs. 14,000 each.

(3.) Learned counsel for the appellant submits that the accident took place on 23.8.1989 and Motor Vehicles Act, 1988 has come in force from 1.7.1989. At the time of issuing of policy Motor Vehicles Act, 1939 was in force of which section 95 (2) (b) of the Act reads as under: