KHALANIYA BAI DIWAN Vs. NARENDRAPAL SINGH

JUDGEMENT

(1.) IN this revision preferred by the claimants in a case arising out of a motor accident, the only question involved is whether the Claims Tribunal ought to have allowed the application for correcting the alleged inadvertent mistake in the award limiting the liability of the insurance company to the extent of Rs. 50,000/ -, when the statutory liability on the date of the accident was Rs. 1,50,000/ - under Section 95(2)(a) of the Motor Vehicles Act, 1939.

(2.) THE learned Member of the Claims Tribunal in his award passed on 31.12.1990 determined the total compensation at Rs. 1,50,000/ - payable to the claimants. The liability of the insurance company has been limited to Rs. 50,000/ -. In the award, no reason has been mentioned to limit the liability of the insurance company to the above extent. After passing of the award, the claimants moved an application describing it as a review application read with Section 151, Civil Procedure Code. It was pointed out in that application that by amendment to the Act, the statutory liability under Section 95(2)(a) of the Act of 1939 was enhanced with effect from 1.10.1982 from Rs. 50,000 to Rs. 1,50,000/ -. According to the claimants, the learned Member of the Claims Tribunal, while passing the award, appears to have overlooked the above statutory change and, therefore, the award was liable to be corrected by making the insurance company liable for payment of the entire compensation awarded as the statutory liability of the insurance company on the date of the accident, which took place on 20.3.1985, was Rs. 1,50,000/ -.

(3.) THE learned counsel appearing for the claimants relies on Ramesh Kumar v. National Insurance Co. Ltd. 1986 ACJ 557 (P&H;) and contends that the Claims Tribunal ought to have held that the insurance company was liable to discharge the statutory liability to the extent of Rs. 1,50,000/ - irrespective of its contractual liability stated to be limited to Rs. 50,000/ - in insurance policy document.