NEW INDIA ASSURANCE CO LTD Vs. SHANTI DEVI

JUDGEMENT

(1.) Heard Sri Arun Kumar Shukla, learned counsel for the appellant. Notices have been sent by registered post to respondent Nos. 1 and 2. The office report says that neither undelivered cover nor acknowledgment slip has been received back after service. The service on respondent Nos. 1 and 2 is sufficient. Despite the service of notice, no one appears on behalf of the respondents. The appellant is insurer of Truck, bearing registration No. U.T.Y. 3727 which was a goods vehicle.

(2.) The short submission of learned counsel for the appellant is that an accident occurred on 19.6.1987 at 8-00 a.m. The claim petition was filed in the year 1987. Thus, the Old Motor Vehicles Act, 1939 will apply and in view of Section 95(2)(a) the liability of the Insurance Company was only to the extent of Rs. 1,50,000/-. However, in the present case, the Court below has awarded the compensation at Rs. 1,93,6.00/- and has directed the Insurance Company to pay the entire amount alongwith interest @ 15%. He further submitted that the interest @ 15% is highly excessive.

(3.) I find substance in the argument of learned counsel for the appellant.