NEW INDIA ASSURANCE CO LTD Vs. B CHANDRAKALA

JUDGEMENT

(1.) This appeal is filed by the Insurance Company aggrieved by the order dated 3-7-85 in O.P.No.374/82 passed by the District Judge-Cum-Motor Accidents Claims Tribunal, East Godavari.

(2.) The legal representatives of one Krishnamurthy, who died in a motor accident filed the claim petition alleging that on 2-7-1982 at about 11. p.m. while the deceased was on duty in the premises of the A.P. Paper Mills, Rajahmundry a lorry bearing No. A.A.P 6864 owned by the 6th respondent herein was driven rashly and negligently by the driver of the lorry and due to the said act, accident accured. The claimants claimed a total compensation of Rs.1,10,500/-.

(3.) The deceased was found to be employed in the A.P. Paper Mills. So, the potentialities of that person and the loss of dependency has been worked out by the lower court and it awarded a compensation of Rs.88,500/-. The driver and the owner of the lorry ramained ex parte. The decree was passed as against the owner, driver and the Insurance company also. The Insurance Company has filed this appeal and it does not dispute the amount that has been awarded by the lower court. So long as the other parites who are jointly and severally liable to pay the compensation have not filed any appeal questioning the award passed by the lower court, the Insurance Company is competent to file the appeal questioning its liability only. The Insurance Company is liable to pay the compensation in terms of the conditions laid down in the policy. When once there is a valid policy it is the duty of the lower court to see as to what extent the Insurance Company is liable. As the accident took place prior to 1-10-1982, the liability of the Insurance Company is restricted to a sum of Rs.50,000/- as contemplated by Section 95 (2) (a) of the Motor Vehicles Act, 1939. In this case where the question of liability of the Insurance Company alone is challenged without affecting the rights of the other parties with regard to the liability, over and above the sum of Rs.50,000/- the owner and driver of the lorry are liable to pay the compensation.