NATIONAL INSURANCE CO LTD Vs. GAYATRI DEVI
LAWS(ALL)-2007-11-119
HIGH COURT OF ALLAHABAD
Decided on November 20,2007

NATIONAL INSURANCE CO. LTD. Appellant
VERSUS
GAYATRI DEVI Respondents

JUDGEMENT

Prakash Krishna - (1.) -This is an appeal under Section 110D of the Motor Vehicles Act, 1939 by the insurance company against the award dated 24.1.1984, passed in Motor Accident Claim Petition No. 15 of 1979.
(2.) THE Tribunal has awarded a sum of Rs. 48,000 as compensation amount to the claimant respondents. THE accident took place on 7.5.1979 at about 5.00 p.m. THE insurance company had insured a bus bearing registration No. U.P.I.-9107 which was carrying a marriage party to village Rikhpur. THE bus was returning from the village after marriage and met with road accident as it was being driven at a great speed. In that accident Ram Charitra Singh, who was travelling in the bus as a passenger, died. THE court below has awarded a sum of Rs. 48,000 against the insurance company. Sri P. K. Mukherji, learned counsel for the appellants submits only one point in support of the appeal. He submits that in view of Section 95 (2) (b) (iv) of the Motor Vehicles Act, 1939, the liability of the insurance company in respect of a passenger of a bus is limited to the extent of Rs. 5,000 in case of death. He very fairly informed the Court that the said amount was subsequently enhanced to Rs. 15,000 by subsequent amendment which came into force in the year 1982. His contention is that the Tribunal has committed illegality in fastening the entire liability on the insurance company. The learned counsel appearing for the claimant respondents supports the order of the court below. Having heard the respective submissions of the learned counsel for the parties, I find sufficient force in the argument of the learned counsel for the appellants. The insurance company can be held liable to the extent of Rs. 15,000 to indemnify the owner of the bus, as per the amended provision. The rest of the amount shall be payable by the owner of the bus. In view of Section 95 (2) (b) (iv), the liability of the insurance company is limited to the extent of Rs. 15,000 only. The learned counsel for the respondents could not dispute that the aforesaid provision is not applicable to the facts of the present case.
(3.) IN this view of the matter, the award of the Tribunal needs modification and the same is hereby modified. It is held that the insurance company is liable to pay a sum of Rs. 15,000 alongwith interest thereon as awarded by the Tribunal. The remaining amount shall be recoverable from the owner of the bus/respondent No. 4, namely, Krishna Murari. In the result, the appeal succeeds and is allowed in part, as indicated above.;


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