NEW INDIA ASSURANCE COMPANY LTD Vs. KANCHAN DEVI

JUDGEMENT

(1.) The question for consideration of this Court has been raised by the appellant-Insurance Company that whether the respondent-claimant in an appeal preferred by the insurer, against the award of compensation under Section 173 of the Motor Vehicles Act, the claimant-respondent can submit the cross-objection for enhancement of compensation.

(2.) Brief facts of the case are that the accident occurred on 8-5-1992 causing death of one Ghisa Lal Teli. The claimants, legal heirs of deceased Ghisa Lal, submitted claim petition before the Motor Accident Claims Tribunal, Nimbhera seeking compensation of total Rs. 4,15,000/- from the driver and owner of the vehicle as well as from the appellant-Insurance Company. The claim petition was allowed by the Motor Accident Claims Tribunal vide award dated 11-11- 1998. Aggrieved against the said award, the Insurance Company preferred appeal. The appellant-Insurance Company's contention in the appeal was that the driver had no valid driving licence to drive the heavy goods vehicle and, therefore, the appellant-Insurance Company is not liable to reimburse the compensation to the insured as the insured had breached the condition of policy. The insurer has not challenged the award on other issues for obvious reason that the Insurance Company was under impression that the Insurance Company has limited defence to contest the claim and award, therefore, they can prefer appeal to challenge the award only on limited grounds.

(3.) The respondent-claimant submitted cross-objection on 21-4-1999 before this Court after giving copy of the cross-objection to the learned counsel for the appellant which is apparent from the record of the Court. Though the appeal was for service of respondent Nos. 5 and 6 but this Court finding that Hon'ble the Apex Court has made the legal position clear by pronouncing judgment in the case of National Insurance Co. Ltd. v. Swaran Singh & Ors., 2004 AIR SCW 663 : (AIR 2004 SC 1531), held that the plea taken by the appellant-Insurance Company will not be sufficient to absolve the appellant-Insurance Company from its liability to pay compensation. Therefore, this Court vide brief order dated 14-12-2005 dismissed the appeal of the appellant-Insurance Company. Since the cross-objection was filed by the claimant, therefore, the matter was fixed for orders on cross-objection of the respondent- claimants.