ORIENTAL INSURANCE CO LTD Vs. GUNAMAI SAIKIA

JUDGEMENT

(1.) THIS letter patent appeal is directed against the Judgment and Order dated 10. 01. 2001 passed by the learned Single Judge in MA (F) No. 177/03. By the impugned judgment, the learned Single Judge allowed the appeal with the following directions :

(2.) MR. D. Sur, learned counsel for the appellant Insurance Company submitted that the vehicle involved in the accident was insured with them for the limited liability of compensation of Rs. 15,000/- against payment of fixed premium of Rs. 12/- per passenger. The Tribunal awarded compensation of Rs. 93,000/- per passenger out of which Rs. 58,000/- is to be paid by the Insurance and the balance amount of Rs. 35,000/- by the owner. The learned Single Judge by the judgment under appeal fastened the entire liability with the Insurance Company relying upon a decision of this Court in Rameswar Hazarika Vs. P. K. Baruah and Anr. , reported in AIR 1972 Assam and Nagaland 72.

(3.) MR. Sur, learned counsel submitted that since the Insurance was obtained for a limited liability of Rs. 15,000/- against fixed premium of Rs. 12/- per passenger, the Insurance Company cannot be directed to pay more than the contractual amount. Mr. Sur relied upon a decision of the Hon'ble Supreme Court in New India Assurance Company Ltd. , Appellant-Vs. Shanti Bai and Ors. Respondents, reported in AIR 1995 SC 1113.