ORIENTAL INSURANCE Vs. GIRIJA BHAT ALIAS SHASHOO

JUDGEMENT

(1.) ORIENTAL Insurance Company Limited has filed this appeal against award dated December 21, 2004 in Claim Petition No. 385 (Claims) of Motor Accidents claims Tribunal Jammu awarding an amount of Rs. 12,95,000/- in favour of the claimants along with interest @ Rs. 9% per annum.

(2.) LEARNED Counsel appearing for the appellant company submits that Bus No. JK02l-6447 had been carrying 32 passengers at the time it had met with an accident resulting in the death of Avinash Shashoo, the claimants' predecessor-in-interest, besides others as against the authorized capacity of 27 passengers and in that view of the matter the appellant company was not liable to indemnify the owner who had violated the terms and conditions of the policy by plying an overloaded bus.

(3.) CLAIMANTS' counsel on the other hand submitted that owner's plying the vehicle in question with overloaded passengers would not amount to violation of the terms and conditions of the policy and the insurance company cannot absolve itself of its liability to satisfy the award and indemnify the owner in view of the law laid down by Hon'ble Supreme Court of India in National Insurance company Ltd. Vs. Anjana Shyam and ore, reported as 2007 AIR SCW 527.