NEW INDIA ASSURANCE CO LTD Vs. SAPURAN DEVI

JUDGEMENT

(1.) Heard learned Counsel for the parties.

(2.) This appeal is directed against the judgment dated 22.12.90, passed by Sri Uma Shankar, Addl. Claims Tribunal, Hazaribagh, in Claim Case No. 11 of 1981 Sapuran Devi v. TELCO whereby the claimants have been granted compensation amounting to Rs. 1,31,000.00 under the Motor Vehicles Act, 1979 (hereinafter referred to as 'the Act 9), along with interest. Respondent Nos. 5 and 6 (hereinafter referred to as TELCO), are manufacturers of trucks in their factory at Jamshedpur. After manufacturing the trucks without bodies thereupon, the same are despatched to different destinations in the country. On 4.4.81, the chassis in question with a temporary permit had been despatched from Jamshedpur for Ludhiana. At Kujju, a village between Ranchi and Ramgarh, the chassis in question had knocked down one Upendra Manjhi, who was then working as a Constable in the service of Bihar Government and was aged 26 years. He died on 6.4.81, leaving behind claimant No. 1 (Most. Sapuran Devi), and three children, being the other claimants. They are respondent Nos. 1 to 4 before me. Thereafter, the claimants filed an appropriate application under the Act for compensation. After considering the materials on record, learned Tribunal by the impugned judgment has quantified the compensation at Rs. 1,31,000.00 with interest @ 12% from the date of the application till the date of the payment. The same was directed to be paid within a period of two months from the date of the judgment, failing which the Insurance Company shall in addition be liable to pay interest @ 18% from the date of the judgment till the date of the realisation. The appellant has deposited a sum of Rs. 25,000.00 in this Court on 19.2.96, which is still in deposit. The order dated 20.8.91 passed in this appeal is to the effect that the learned Counselfor the appellant states that he will not press the appeal with regard to the contentions of the appellant to the effect that the vehicle in question was not insured of TELCO Ltd. files the cover-note in question even before this Court. Thereafter, TELCO filed an application in this Court on 17.4.92 bringing on record a photocopy of the cover-note.

(3.) While assailing the validity of the impugned judgment, learned Counselfor the appellant submits that the impugned judgment is in the teeth of the provisions of Section 95(2)(a) of the Act which provides that the liability of the Insurance Company under the old Act is limited to the extent of Rs. 50,000.00 subject to any contrary intention or terms of the cover-policy. He also submits that the rate of interest is on the higher side. He lastly Submits that TELCO had not contested the claim before the Tribunal and was responsible for the delay in the conclusion of the proceeding.