NEW INDIA ASSURANCE CO LTD Vs. KOYAMMU

JUDGEMENT

(1.) The insurer is the appellant. Appeal is against the award of Motor Accidents Claims Tribunal, Kozhikode in M.A.C. 142 of 1981. The accident happened on 26-9-1080. The first respondent was a passenger in bus KLD 7914 owned by 3rd respondent and driven by 2nd respondent. He sustained injuries when the bus met with the accident as a result of rash and negligent driving of the vehicle by second respondent. An amount of Rs.25,000/- was claimed as compensation from respondents 2 and 3 and the appellant, who is the insurer. The petition was resisted by the owner, driver and the insurer. Appellant, the insurer inter alia contended that their liability is limited as provided in the Motor Vehicles Act. They further contended that their liability has to be fixed at Rs.5,000/- since the claimant was a passenger. The Tribunal awarded an amount of Rs.25,000/- as compensation with interest at 12% per annum from date of petition with costs which include the advocate's fee as provided in the Civil Rules of Practice for suits. Appellant was directed to pay the amount. It was further directed that 95% of the amount awarded shall be deposited in fixed deposit in a nationalised bank in the name of the claimant for a period of seven years from the date of deposit with a further direction to pay monthly interest thereof to the claimant every month. Aggrieved by that decision the insurer has come up in appeal.

(2.) Two points arise for consideration.

(3.) On the first point it is urged by learned counsel for the appellant that the claimant was only a passenger in the bus and as such the liability of the insurer is limited to Rs.5000/-. Another passenger who sustained injuries in the same accident has moved the Tribunal as per M. AC. 80 of 1981. The award passed therein was challenged by the insurer before this court in M.F. A 556 of 1984. This court in the judgment pronounced on 3-8-1989 held that the liability of the appellant has to be restricted to Rs.5000/-. That first respondent was a passenger in the bus is not disputed. The liability of the appellant has therefore to be restricted to Rs.5,000/-.