NATIONAL INSURANCE COMPANY LIMITED Vs. BEHARI LAL

JUDGEMENT

(1.) Leave is granted.

(2.) This appeal is from the judgment and order of the High Court of Rajasthan at Jaipur dated May 29, 1997 allowing Civil Misc. Appeal No. 682 of 1996 filed by respondents 1 and 2 herein. The point that arises for consideration is the scope and import of the proviso to sub-section (2) of Section 147 of the Motor Vehicles Act, 1988 (for short, 'the New Act').

(3.) The appellant (hereinafter referred to as, 'the Insurance Company') issued a policy in favour of the first respondent (Behari Lal), owner of the bus bearing registration No. R.J. P. 4719. The policy of insurance, issued under the provisions of the Motor Vehicles Act, 1939 (for short, 'the Old Act'), was valid for one year - from October 28, 1988 to October 27, 1989. The said bus, while being driven by respondent No. 2, met with an accident which resulted in the death of one passenger - Shiv Bhagwan and injuries to the other passengers travelling therein. Respondent Nos. 3 to 8, heirs of the said Shiv Bhagwan, filed a petition before the Court of Additional District Judge, Khetri, Rajasthan - the Motor Accident Claims Tribunal (for short, 'the Tribunal'), claiming compensation of Rs. 14,14,000/- from respondent Nos. 1 and 2 (being the owner and the driver of the bus) and the Insurance Company as the insurer. The Insurance Company contested the claim, inter alia, on the ground that its liability under the terms of the policy issued under the Old Act and the provisions of the New Act, was limited to only Rs. 15,000/- per passenger travelling in the bus. On June 1, 1996, the Tribunal held that respondent Nos. 3 to 8 were entitled to compensation of Rs. 1,50,000/- from respondent Nos. 1 and 2 and that the liability of the Insurance Company was limited only to Rs. 15,000/-. Respondent Nos. 1 and 2 filed appeal before the High Court challenging that part of the order of the Tribunal, which limited the liability of the Insurance Company. On May 29, 1997 a learned single Judge of the High Court allowed the appeal holding that the liability of the Insurance Company is co-extensive with that of respondent Nos. 1 and 2 herein and thus modified the Award of the Tribunal. It is from that order of the High Court, the Insurance Company is in appeal before us.