- (1.) Leave granted. Challenge in this appeal is to the order passed by a learned Single Judge of the Punjab and Haryana High Court. By the impugned judgment, the High Court held that though the liability of the appellant (hereinafter referred to as the "insurer") was limited to Rs.50,000/- yet it was to first pay the amount awarded to the claimants and recover amount in excess of Rs.50,000/- from the owner and driver of the offending vehicle.
(2.) Factual position in a nutshell is as follows: One Karan Singh, conductor of the bus no.DEP-3514 lost his life in an accident which took place on 14.7.1984. The bus belonged to M/s Mewat Transport Company Private Limited (hereinafter referred to as the "insured"). The bus was driven by deceased Karan Singh and it dashed in a tanker no.HRG- 2852. The impact was so intense and severe that several persons sitting in the bus died, while many others sustained injuries. The widow, minor children and parents of aforesaid Karan Singh lodged claim petition claiming compensation of Rs.1,40,000/-. The Tribunal took several claim petitions together and in respect of the claim under consideration awarded compensation of Rs.57,600/- along with 12% interest p.a. from the date of institution of the claim petition. It was, however, held that liability of the insurer was limited to Rs.50,000/-.
(3.) The claimants filed appeal before the Punjab and Haryana High Court. By the impugned order the High Court enhanced claim of compensation to Rs.1,25,200/-. It was held, as was done by the Tribunal, that the liability of the insurer was limited to Rs.50,000/- in terms of the insurance policy. However, it was held that the entire amount was to be paid by the insurer to the claimants and it was entitled to recover the amount in excess of Rs.50,000/- from the owner and the driver of the vehicle.;