M G AUTOMOBILES BELLARY Vs. RAJA RAO

JUDGEMENT

(1.) Sri S.P. Shankar is directed to take notice for the second respondent. Notice to the first respondent is dispensed with. By consent of both sides, this matter is taken up for final disposal.

(2.) This appeal is filed by the second respondent, the owner of the vehicle, in No. M.V.C. 417 of 1987 on the file of the Additional M.A.C.T., Chitradurga against that part of the judgment and award by which the Tribunal has directed that he should pay the interest on the compensation awarded, to the claimant.

(3.) It is undisputed that the vehicle in question was insured with the second respondent herein and that limit of the liability of the second respondent under the terms of the Policy was Rs. 15,000/-. The Tribunal has awarded Rs. 15,000/- as compensation. However, the Tribunal has restricted the liability of the second respondent insurer only to Rs. 15,000/- and absolved the insurer of the liability to pay the interest and costs thereon. The owner of the vehicle is directed to pay the interest and costs. It would appear that the Tribunal thought that because the liability of the insurer was limited to Rs. 15,000/-, the Insurer cannot be required to pay interest on the sum of Rs. 15,000/-. The attention of the learned member of the Tribunal does not appear to have been drawn to Section 96(1) of the Motor Vehicles Act, 1939. Section 96(1) of the Motor Vehicles Act, 1939 reads thus: