NEW INDIA ASSURANCE CO LTD Vs. VIMAL DEVI

JUDGEMENT

(1.) These appeals, at the instance of the insurance company (the Appellant), arise from a motor accident claim case.

(2.) The Appellant is aggrieved by the High Court Order that even though holding in express terms that the liability of the insurer was limited to Rs. 50,000/- and interest thereupon, went on to direct it to pay the entire compensation amount of Rs. 4,90,000/-, along with interest, to the claimants and then to recover the amount beyond its liability of Rs. 50,000/- from the owner of the vehicle involved in the accident.

(3.) Mr. K.L. Nandwani, learned Counsel appearing for the insurance company, submitted that the liability of the Appellant being limited to Rs. 50,000/-, the High Court was in error in making such a direction. In respect of the submission, he relied upon a Constitution Bench decision of this Court in New India Assurance Co. Ltd. v. C.M. Jaya and Ors., 2002 2 SCC 278.