ORIENTAL INSURANCE CO. LTD. Vs. K.R. SHIVAPRAKASH

JUDGEMENT

(1.) These appeals have been preferred by the insurer of the bus bearing registration No. MEU 4545 which was involved in an accident on 30.5.1989 on K.H. Road in Chikmagalur town, resulting in the death of one Sidde Gowda and another person Velu and injuries to one Ninge Gowda.

(2.) It was urged by the learned advocate for the insurer that the Tribunal was not right in fastening the liability to satisfy the award It was urged that there was breach of condition of the policy, in that the vehicle had been entrusted by the insured to a person who was not holding a valid licence and, therefore, the Tribunal was not justified in fastening the liability to satisfy the award on the. On facts we are satisfied that the Tribunal was justified in negativing the contention advanced by the insurer in this regard. It may be noticed that apart from the fact that the insurer has not established that there has been any breach of the condition of the policy, there was not even a plea taken by it to the effect that the insured had entrusted the vehicle to a person who was not holding the licence. Therefore, we are satisfied that all these appeals deserve to be dismissed.

(3.) However, one important aspect relating to the deposit of the money payable to the minor claimants in the fatal accident cases was brought to our notice and it was pointed out that the Tribunal has held that no direction relating to deposit of share on the insurer. On facts we are satisfied that payable to the minor petitioner could be given by it in view of the decision of this Court in Malumbi Vs. Albin Abdul, ILR 1991 Knt 2716 and it was urged that the law declared in this regard in the said decision requires a second thought. The learned single Judge in Malumbi's case (supra) has held that the Claims Tribunal in directing the amount to be applied in a particular manner, viz., to deposit in a nationalised bank is quite arbitrary and illegal and the reason for the said conclusion is as hereunder: