NEW INDIA ASSURANCE CO LTD Vs. RAMESH GUPTA

JUDGEMENT

(1.) This judgment will dispose of Letters Patent Appeal Nos. 1 of 1987 (New India Assurance Co. Ltd. v. Ramesh Gupta), 840 of 1986 (United India Insurance Co. Ltd. v. Nishat & Malwa Bus Private Ltd.) and 841 of 1986 (United India Insurance Co. Ltd. v. Nishat & Malwa Bus Private Ltd.). The facts have been taken from Letters Patent Appeal No. 1 of 1987.

(2.) On 25.5.1982 at about 9.30 p.m., Sadhu Ram, an operator on a drilling machine, was killed when a truck bearing No. PBT 5217, insured with the appellant insurance company, collided with the machine. The claimants, who are the widow and minor children of Sadhu Ram, filed an application under section 110-A of Motor Vehicles Act, 1939, for compensation on account of the accident. The Tribunal, in its award dated 28.2.1983 had granted a sum of Rs. 70,000 as compensation to the claimants and Saroj Bala, respondent No. 4. It further held that the liability of the appellant insurance company was limited to Rs. 50,000 along with interest on this amount and the balance amount was held to be payable by the driver and the owner of the truck. The owner of the vehicle, Ramesh Gupta, thereafter filed an appeal in this court, challenging the correctness of the award of the Tribunal primarily on the ground that the liability of the insurance company was unlimited and that the entire amount of compensation awarded by the Claims Tribunal was, therefore, payable by the insurance company. The learned single Judge in his judgment dated 21.10.1986 held that it appeared from the insurance policy on record that it did not disclose any limitation with regard to the liability of the insurance company and as such, the entire amount was payable by it. Appeal was accordingly accepted. The present appeal along with two other connected appeals has been filed by the insurance company, challenging the correctness of the observations of learned single Judge, whereby the entire liability of payment of compensation has been fastened upon the insurance company.

(3.) During the course of hearing today, Mr. L.M. Suri, learned senior counsel for insurance company, has produced before us a true copy of the insurance policy of truck No. PBT 5217, issued on 30.4.1982 and has referred to the endorsement, which reads as under: