NEW INDIA INSURANCE CO LTD Vs. GHISI BAI

JUDGEMENT

(1.) THIS appeal involves a challenge to the order dated October 4, 1991, passed by the Judge, Motor Accidents Claims Tribunal, Bundi, whereby he has directed the owner and the insurance company to jointly and severally pay a sum of Rs. 25,000 to the respondents under Section 140 of the Motor Vehicles Act, 1988 (for short 'the 1988 Act').

(2.) THE respondents have filed a claim petition before the Motor Accidents Claim Tribunal, Bundi (for short 'MACT') for compensation on account of death of Bhanwar Lal, husband of respondent No. 1 and father of respondents Nos. 2 to 5. In the claim petition it has been alleged that while Bhanwar Lal was travelling in Jeep No. RST 5325, the driver of the jeep Shri Rajendra Kumar drove the jeep rashly and negligently. On account of his rash and negligent driving the jeep suddenly overturned. Bhanwar Lal received serious injuries and ultimately died in Maharao Bhimsingh Hospital, at Kota. The jeep is insured with the appellant company.

(3.) THE only argument advanced by Mr. Alok Sharma, learned counsel for the appellant, is that while passing the interim award, the Tribunal has overlooked the proviso to Section 147(2) of the 1988 Act. The policyof the jeep No. RST 5325 was valid for a period from October 30, 1988, to October 29, 1989, and, therefore, the said policy must be deemed to be effective for a period of four months after the commencement of the 1988 Act or till the date of expiry of the policy, whichever was earlier. In view of this, the Tribunal could have awarded interim compensation only to the tune of Rs. 15,000 under Section 92A of the Motor Vehicles Act, 1939 (for short 'the 1939 Act'). Shri Sharma argued that since the provisions of the 1988 Act have come into force on July 1, 1989, the policy must be deemed to be valid up to October 29, 1989, and, therefore, in respect of the accident which took place on August 14, 1989, the provisions of Section 140 could not have been invoked.