NATIONAL INSURANCE CO LTD Vs. SUMITRA DEVI

JUDGEMENT

(1.) This is an appeal under Section 173 of Motor Vehicles Act, 1988 against the award dated 08.07.2004 passed by the M.A.C.T., Delhi in MACT case no. 86/2004 whereby the claim petition of the claimants/respondent nos. 1 to 5 herein, which was initially filed under Sections 166 and 140 of the said Act and then converted into one under section 163-A, was allowed and compensation to the tune of Rs. 4,09,000/- along with interest thereon @ 9 % per annum from the date of filing of the claim petition till actual realization was awarded in favour of the claimants. The insurance company-appellant herein was held liable by the said impugned award to pay the compensation awarded to the claimants at first instance but at the same time a right was given to it to recover the said amount from the "insured" i.e. respondent no. 7 herein.

(2.) Brief facts resulting in filing of the present appeal may be summarized as follows:

(3.) The Learned Tribunal after appreciating the evidence as well as documents placed on record held the owner (insured), driver and the insurance company jointly and severally liable to make the compensation fixed at Rs. 4,09,000/- along with interest @ 9 % per annum. As far as the plea of the insurance company that it was not liable to pay any amount to the claimants because of the cancellation of the insurance policy prior to the accident is concerned the tribunal while accepting the plea that the insurance policy stood cancelled before the accident and that the insured had also been intimated about that rejected the plea that the insurance company was not liable to pay the compensation to the claimants. That plea was rejected by the tribunal relying upon the judgment of the Apex Court in "Oriental Insurance Co. Vs. Inderjit Kaur and Others" 1998 ACJ 123. However, the insurance company was given the right to recover this amount from the insured.