NEW INDIA ASSURANCE COMPANY LIMITED Vs. DARSHAN SINGH

JUDGEMENT

(1.) This is a Letters Patent Appeal against the Judgment dated 13th February, 1989 of the learned Single Judge whereby he held that the appellant Insurance Company was liable to pay a compensation of Rs. 1,35,000.00 to the widow and minor son of deceased Rakesh Mohan Solan who died in motor accident on 28th June. 1979. Solan was driving his two-wheeler scooter and his minor daughter was a pillion rider. Both died in the accident caused by the truck bearing registration no.DHG 3315. Solan is survived by his widow Saroj and his minor son Neeraj and his aged parents. They are respondents 3 to 6. Respondent no. 1 is the driver of the offending truck and respondent no. 2 is the owner thereof.

(2.) Learned Motor Accident Claim Tribunal found that the deceased Solan was having an income of Rs. 1.000.00 p.m. out of which he was spending Rs 250.00 per month on his personal expenses and dependency of his heirs is Rs 750.00 per month. At the time of his death. Solan was aged 39 years. The learned Tribunal awarded Rs. l,35,000.00 as compensation and limited the lability of the appellant Insurance Company to Rs. 50.000.00 . Saroj, the widow and other heirs of the deceased Solan appealed. Learned Single Judge found that Insurance Company had not taken up any plea of its liability being limited to Rs. 50,000.00 and no copy of the policy had been produced at the time of filing written statement, though a copy was filed during the statement of a Clerk of the Insurance Company, who said that he was having a power of attorney from the Insurance Company but no such power of attorney was either shown by him or filed on the record. The preliminary objection taken by the Insurance , Company before the Tribunal was that all the heirs of the deceased Solan had not filed the petition claiming compensation. The legal heirs had claimed Rs. 5 lakhs and had said that all the respondents being, the driver, owner and the insurer were jointly and severally liable. Both the driver and owner were proceeded ex parte. On the pleas of the partics, the Tribunal framed the following issues :

(3.) The Award of the Tribunal is dated 26th February, 1986 given after 7 years of the date of the accident. The Tribunal computed the amount at Rs. l,35,000.00 ,outof which the Insurance Company was asked to pay Rs. 50,000.00 and the balance was to be paid by the owner and the driver. The amount awarded was to carry interest at the rate of 9 per cent per annum from the date of filing of the petition unless the amount was paid within 60 days from the date of the order. It is stated that Insurance Company did deposit Rs. 50,000.00 within this period. On the facts of the case in appeal. Learned Single Judge, however, came to the conclusion that the Insurance Company was liable to pay compensation of Rs. l,35,000.00 and its liability could not be limited to Rs. 50,000.00 . He also held that the amount of compensation would carry interest at the rate of 9 per cent per annum from the date of application till realisation.