NEW INDIA ASSURANCE COMPANY LIMITED Vs. SHANTI BAI

JUDGEMENT

(1.) Leave granted.

(2.) This appeal by special leave arises from a judgment and order dated 11th of February, 1994 passed by the High Court of Madhya Pradesh in Misc. Appeal No.444 of 1991. The appellant before us is the New India Assurance Company Ltd. It had issued a comprehensive insurance policy in respect of a bus which was used for carrying passengers for hire and bearing Registration No.CIK-8108, owned by respondent No.4. This insurance policy was in force at the material time.

(3.) On 3rd of January, 1989, this bus, while it was being driven by respondent No.5, met with an accident. The deceased. Laxman Singh, who was sitting on the roof top of the bus driver, respondent No.5, hit a tree on account of the alleged rash and negligent driving of the said bus by respondent No. 5. He was admitted to hospital and died on 7-1-1989 on account of the injuries received in the accident. The legal heirs of Laxman Singh, who are respondents 1 to 3 before us, filed a claim for compensation amounting to Rs.7,81,000/- before the Motor Accident Claims Tribunal, by its order dated 10-4-1991, awarded to respondents 1 to 3 compensation of Rs. 1,10,000/- together with interest the rate of 12% per annum from the date of the presentation of the petition and directed the appellant and respondents 4and 5 to pay the same.