BAJAJ AUTO LTD Vs. BHIKALAL MULCHAND VORA

JUDGEMENT

(1.) THIS appeal arises from the judgment and order passed by the learned 4th Joint Civil Judge, Senior Division, Pune on September 30,1980 in Special Civil Suit No. 201 of 1972.

(2.) THE relevant facts giving rise to this appeal are as under:

(3.) MR . Joshi, learned advocate appearing on behalf of the appellants, made a limited submission that the learned trial Judge ought to have held that the limit of liability of respondent No. 3 (the Insurance Company) was extended to Rs. 50,000/- by the Motor Vehicles Amendment Act, 1969 which had received the assent of the President of India on December 29,1969 and which came in force from March 2,1970. In the submission of Mr. Joshi, therefore, in view of the said amendment the full liability of Rs. 40,000/- was that of respondent No. 3 and the appellants should not have been saddled with any liability by the learned trial Judge. Mr. Kamat, learned Counsel appearing on behalf of the respondent No. 3-Insurance Company, in his usual fairness, submitted that in view of the amendment to Section 95(2)(b)(i) of the Motor Vehicles Act in the Year 1969, the liability of the Insurance Company was to the extent of Rs. 50,000/- in a case like this and, therefore, the learned trial Judge was not right in saddling the appellants with the liability of Rs. 20,000/-. In other words, Mr. Kamat very fairly agreed with the submission made by Mr. Joshi on behalf of the appellants. Such being the legal position, this appeal succeeds and the same should be allowed.