BALBAHADUR SINGH Vs. ORIENTAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) In this Special Leave Petition the claimant has come seeking enhanced compensation as compared to the one granted by the High Court in appeal of the respondent-Insurance Company. A Bench of this Court by order dated 3rd December, 1999 directed as under:

(2.) In view of this order it is not in dispute between the parties that the full claim amount as awarded by the Motor Accident Claims Tribunal is already received by the petitioner-claimant. Now, the only question which survives is whether the Insurance Company had full or only limited statutory defence as permitted by the Motor Vehicles Act, 1988.

(3.) Learned counsel for the respondent-Insurance Company, placing reliance on a decision of this Court in the case of British India General Insurance Co. Ltd. v. Captain Itbar Singh, (1960) 1 SCR 168 : (AIR 1959 SC 1331) submitted that a three-Judge Bench of this Court has taken the view that if there is an agreement between the insured and the Insurance Company as mentioned in the Insurance Policy permitting the Insurance Company to have full defence against such claims, then the Insurance Company will be entitled to defend the action against the insured on all permissible defences available to the insured.