NEW INDIAN ASSURANCE CO LTD Vs. RAGHBAR DAYAL

JUDGEMENT

(1.) This is an appeal by the insurer against the award of the Motor Accident Claims Tribunal, Gurgaon, challenging its liability to pay the amount awarded as compensation to the claimants.

(2.) The undisputed facts as found by the Tribunal are that truck No. LHL 4499 was being driven by Karim Khan rashly and negligently on Ferozepur Jhirka Tijara road when window of the truck suddenly opened and passengers including the son of the claimants fell down, received injuries and died. This happened on 22/03/1903. The deceased was an unmarried young man of 19 years and his parents then filed a claim petition under S. 110-A of the Motor Vehicles Act, 1939 (hereinafter called 'the Act') claiming a sum of Rs. 40,000.00 as compensation from Satya Paul Singh, owner of the truck, Karim Khan, its driver and the New India Assurance Co. Ltd., with which the defaulting vehicle stood insured. When the case came up for the framing of issues, counsel appearing for the claimants made a statement limiting the claim only to the tune of Rs. 15,000.00 equal to 'the no fault liability' under S. 92-A of the Act.

(3.) On examination of the records and after hearing counsel for the parties, the Tribunal found that the claimants were entitled to a sum of Rs. 15,000.00 as compensation being the heirs of the deceased. It was held that after the introduction of S. 92-A, of the Act, the owner of the offending vehicle was liable to pay a sum of Rs. 15,000.00 as compensation and since the vehicle stood insured with the New India Assurance Co. Ltd., appellant herein, the Tribunal found that the liability of the insurer was coextensive with that of the insured. Accordingly, a sum of Rs. 15,000.00 was awarded as compensation to the claimants against the owner as well as the insurer and their liability to pay the amount was held to be joint and several. The claimants were also held entitled to interest at the rate of 6 per cent per annum on the awarded amount from the date of the claim petition till its realisation. It is this award which has been impugned in the present appeal.