UNITED INDIA INSURANCE CO LTD Vs. SHANTA BAI

JUDGEMENT

(1.) BEING aggrieved by the award dated 23-8-1995 passed by MACT, Dewas in Claim Case No. 9/1990, whereby the claim petition filed by the respondent No. 1 has been allowed and respondent Nos. 2 and 3 and appellant has been held liable for making payment of Rs. 40,000/along with interest @ 12% per annum, the present appeal has been filed.

(2.) SHORT facts of the case are that an accident took place on 23-8-1989, in which the husband of respondent No. 1 deceased Jagannath died who was sitting in the offending Tempo bearing registration No. MOU-1039, which was being driven by respondent No. 2, owned by respondent No. 3 and insured with appellant. A claim petition was filed by respondent No. 1 being the legal representative of deceased Jagannath. The claim petition was contested by the appellant on various grounds including on the ground that liability of the Insurance Company is limited. On the basis of the pleadings of the parties, learned Tribunal framed the issues, recorded the evidence and held the respondent No. 1 entitled for a sum of Rs. 40,000/- along with interest @ 12% per annum and also on the ground that in other two claim cases which were arising out of the same accident, the Insurance Company has settled the claim in compromise for a sum of Rs. 14,000/- each.

(3.) LEARNED Counsel for the appellant submits that the accident took place on 23-8-1989 and Motor Vehicle Act, 1988 has come in force from 1-7-1989. At the time of accident Motor Vehicles Act, 1939 was in force of which Section 95 (2) (b) of the Act, which reads as under :