AJANTA TRAVELS Vs. TAYEBALI ALIBHAI PETIWALA

JUDGEMENT

(1.) THE short question in this appeal relates to the operation of the amendment effected to Section 95 of the Motor Vehicles Act, 1939, by the Amending Act, 56 of 1969, which came into force on 2-3-1970.

(2.) BY this amendment the upper limit of Rs. 20,000/- in all where the vehicle is registered to carry more than 30 but not more than 60 passengers which was imposed under Sub-section (2)(b)(ii) of Section 95 was raised to Rs. 50,000/- (SIC) with effect from 2-3-1970.

(3.) MRS Mahimkar on behalf of the Appellants has gone hammer and tongs at the interpretation put up by the learned Member of the Tribunal regarding the effect of retrospective operation of a statute. She relies on Section 96(3) of the Act which makes the intention of the legislature clear. Under that Sub-section any conditions in the policy which purport to restrict the insurance of the persons as respects liabilit ies that are covered by Clause (b) of Sub-section (1) of Section 95 could be of no effect. The equities have been adjusted by the proviso to the Sub-section under which any sum paid by the insurer in or towards the discharge of any liability to any person which is covered by the policy by virtue only of this Sub-section shall be recoverable by the insurer from that person. Relying on this provision. Mrs. Mahimkar argues that as the accident took place on 6-3-1970 (SIC) i.e. after the day when the amendment effected by the amending Act of 56 of 1969 came into force, the Tribunal was in error in restricting the liability of the insurance company to Rs. 2,000/-, on the ground that the Insurance Company's total libility is Rs. 20,000/-.