NATIONAL INSURANCE COMPANY LTD Vs. M A ANNAPOORNAMMA

JUDGEMENT

(1.) This appeal arises out of the order dated 25.03.2011 passed by the Motor Accidents Claims Tribunal-cum-IV Additional District Judge, Tirupathi in O.P. No. 448 of 2008. The National Insurance Company Limited which is the second respondent before the Tribunal preferred the appeal challenging the order passed by the Tribunal on various grounds; namely the finding of the Tribunal that the accident was due to the rash and negligent driving of the lorry bearing AP-11-W-8029 is erroneous, the quantum of compensation granted is on higher side and the finding that the 4th respondent owner of the offending vehicle and the appellant insurance company are jointly and severally liable to pay compensation is also not correct.

(2.) Along with the appeal, the appellant filed MACMAMP No. 3977 of 2011 seeking stay of the operation of the order passed by the learned Tribunal below and this Court granted stay on condition of the appellant depositing 50% of the award amount together with costs and interest and the appellant-insurance company has complied with the said order.

(3.) Thereafter, the claimants filed MACMAMP No. 5079 of 2011 seeking permission to withdraw the amount deposited by the appellant-insurance company pursuant to the order of stay granted by this Court. When the said application came up for hearing, the learned counsel appearing for the appellant-insurance company objected for withdrawal of the amount by the claimants on the ground that the driver of the offending vehicle had no valid driving licence on the date of the accident, on account of which the insurance company is entitled to avoid or disown its liability. The learned counsel appearing for the appellants contended that notwithstanding the fact whether the insurance company can disown its liability, it is under a duty to satisfy the award insofar as the innocent third parties are concerned and therefore, the application seeking permission to withdraw the amount deposited by the insurance company cannot be objected to.