ORIENTAL FIRE AND GENERAL INSURANCE Vs. MAKIREDDI APPALANAIDU

JUDGEMENT

(1.) In this case, the facts are that the deceased person was travelling in a goods vehicle for hire or reward. The court below passed an award in favour of the claimants in a sum of Rs. 58,000/- with costs and interest. The claimants were the husband of the deceased and four minor children.

(2.) The Seamed counsel for the Insurance Company, Sri Kota Subba Rao has contended that in view of the decision of a Division Bench of this Court in Oriental Fire & General Assurance Company vs. M. Bhanumattt rendered by Amareswari and Neeladri Rao, JJ., there is no liability on the part of the Insurance Company under Sections 94, 95 (1) (b) and 96 (2) (b) (i) and (c) of the Motor Vehicles Act, 1939. We are not however deciding as to what is the position under the new Motor Vehicles Act, 1988.

(3.) The above decision of the Division Bench is binding on us and therefore we are unable to release any amount in favour of the claimants. However, it appears that by an interim order the Insurance Company was directed to deposit one half of the amount awarded and the first claimant, who is the husband of the deceased, has been allowed to withdraw Rs. 8000/-. The balance of the amount deposited has already been directed to be invested. Thus the said order will stand. No further amounts will however be permitted to be withdrawn by any of the claimants pending disposal of the CMA. This order, however, will not preclude execution against the owner of the vehicle.