SAROJ GUPTA Vs. RAM AKBAL

JUDGEMENT

(1.) The present appeal has been preferred by the claimants against an award dated 28th May, 1994 whereby the learned Tribunal awarded an amount of Rs. 5,40,000/- as compensation to the claimants and held that Respondent No. 1 and 3 i.e. M.M. Public School, owner of the Matador No. DEP 3723 and its Driver Ram Akbal were liableto pay the amount. The claimants have sought enhancement in the compensation amount and the award is assailed also on the ground that insurance company was liable to pay the damages.

(2.) Cross objections were preferred by Respondent No. 3 i.e. M.M. Public School submitting that the insurance company alone was liable to pay the entire compensation amount and not the driver and owner of the Matador since the vehicle was duly insured by the owner with the insurance company. However, the respondents were proceeded ex-parte by the Tribunal as the Advocate engaged by the respondents failed to discharge his duty and did not bring it to the knowledge of the Tribunal that the vehicle was duly insured. It was submitted that the Tribunal has exonerated insurance company on the ground that the insurance company had denied the insurance. However, the insurance company had admitted that the vehicle was insured but taken a false stand that the vehicle was not insured at the time of accident. Therefore, the Tribunal could not have exonerated the insurance company and should have held the insurance company as liable to make the payment. The objector relied upon the policy obtained by it in favour of the vehicle valid from 20th May, 1985 to 19th May, 1986 and the date of accident in this case was 20th May, 1985.

(3.) The insurance company contested the appeal and cross objections. It is not denied by the insurance company that the policy relied upon by the cross objector was issued by it. The plea taken is that the policy was taken on 20th May, 1985 after the accident had happened and the insurance company was, therefore, not liable.