ORIENTAL INSURANCE CO LTD Vs. GOWRAMMA

JUDGEMENT

(1.) The appellant-insurer has challenged in this appeal the judgment and award dated 8-9-1987 made in M. V. C. No. 186 of 1985 by the District Judge and Motor Accidents Claims Tribunal, Mandya, by which he awarded compensation in a sum of Rs. 71,600/ - together with interest at the rate of 6% per annum from the date of petition till payment.

(2.) The appellant has taken two specific grounds in this appeal. They are : (1) Respondent 8 Siddappa obtained a policy of insurance in respect of the vehicle in question by misrepresentation though, in fact, he was not the owner thereof on the date of the policy much less on the date of accident. Therefore, the appellant is not liable to pay any compensation awarded against such a policy. (2) Under Sec. 95(2)(b)(i) of the Motor Vehicles Act, 1939 (the Act for short), the liability of the insurer is limited to Rs. 50,000/- as it is a statutory liability and any amount in excess of the said amount shall be paid by the owner of the vehicle. Therefore, the finding of the Tribunal that the appellant shall make good the entire amount of compensation awarded is not legal and proper.

(3.) The brief facts of the case culminating in the judgment and decree against the appellant are as follows :- On 2-5-1985 at about 6 P.M., Kempegowda, husband of respondent-1 Gowramma, claimant-1 in the tribunal, was bringing hay in the push cart to his village. The said Kempegowda and another person were pushing the cart from behind. When they reached near Chillapura gate, the bus called Siddalingeswara Motor Service bearing registration No. TNU 443 came from behind with a great speed and dashed against Kempegowda resulting in his instantaneous death. His wife, respondent-1, and children, respondents 2 to 7, claimed compensation before the Tribunal in a sum of Rs. 1,35,000/- for the death of the said Kempegowda.