UNITED INDIA INSURANCE CO LTD Vs. NIRMALA RANI

JUDGEMENT

(1.) This matter has been pending in this court since 1990 and has arisen out of an accident, which happened on 23.12.1987, in which one Sudarshan Kumar Prabhakar, the husband/father of the claimants was killed. The bus involved in the accident belonged to respondent No. 6 in the appeal and was insured with the appellant, United India Insurance Co. Ltd.

(2.) Sudarshan Kumar Prabhakar's heirs filed an application under section 110-A of the Motor Vehicles Act, 1939 (hereinafter referred to as 'the Act') before the Motor Accidents Claims Tribunal. The Tribunal in its award dated 10.10.1989 held that the accident had taken place due to rash and negligent driving of the bus by its driver, Mohan Singh, respondent No. 7 and that as the bus had been insured with the insurance company for an enhanced amount on the basis of a higher premium having been paid vide cheque dated 22.12.1987 the third claim was liable to be enhanced to Rs. 3,00,000 from Rs. 50,000 by the insurance company and that the claimants were entitled to a sum of Rs. 2,16,000 on account of the loss suffered by them. The present appeal has been filed by the insurance company. The appeal was admitted for hearing on 28.3.1990 and the recovery of the amount beyond Rs. 50,000 was stayed. The case came up for final arguments before the learned single Judge on 20.10.1992, on which date the following directions were made by the learned single Judge:

(3.) The matter finally came before another Division Bench on 24.9.1996 and the Bench held that the insurance company was liable to pay a sum of Rs. 50,000 only as it was not liable to pay any further amount on account of enhanced liability. Liberty was, however, left to the claimants to recover the balance amount from the owner or driver of the bus.