- (1.) Leave granted.
(2.) National Insurance Company Limited (hereinafter referred to as the 'insurer') calls in question legality of the judgment rendered by a learned single Judge of the Andhra Pradesh High Court holding the insurer to be liable for indemnifying the award of compensation.
(3.) Background facts in nutshell are as follows : Three persons were travelling in an auto rickshaw which met with an accident on 9-5-1992. Two persons lost their lives while one was seriously injured. Claim petitions were filed by the legal representatives of the two deceased persons while the injured filed separate petition claiming compensation in terms of Section 166 of the Motor Vehicles Act, 1988 (in short the 'Act') The auto rickshaw in question belonged to Challa Atchayya (hereinafter referred to as the 'insured'). The insurer resisted the claim on the ground that the insured had not obtained permit to ply the vehicle and therefore in terms of the policy of the insurance the insurer had no liability. The Motor Vehicle Accident Claims Tribunal, Krishna at Vijayawada (in short the 'Tribunal') accepted the plea. It however, held that the insured was liable to pay compensation which was fixed at Rs. 1,24,000/- in the case of the death while in case injured's claim a sum of Rs. 2,000/- was directed to be paid. The judgment was challenged in appeal before the Division Bench of the High Court of Andhra Pradesh at Hyderabad questioning the correctness of the view regarding non-liability of the insurer. The High Court by the impugned judgment held that the insurer was liable to indemnify the award.;