MAHAVEER Vs. SUSHILA

JUDGEMENT

(1.) THIS appeal has been filed by the owner of the vehicle under Section 110-D of the Motor Vehicles Act, 1939 against the award of the MACT, Churu dated 3rd August, i 994 whereby the learned Tribunal decided the issue No.5 holding that the Insurance Company would be liable to the extent of limited liability of Rs. 50,000/- under the provisions of 1939 Act and not to the extent of unlimited liability of compensation as awarded by the learned Tribunal.

(2.) THE learned Counsel for the appellant- owner of the vehicle Mr. R.J. Punia for Mr. Vijay Vishnoi submitted that the Insurance Company was liable to unlimited extent because they had charged Rs. 240/- as a premium for insurance of the vehicle in question namely Bus No. RJI 2365 and. therefore, third party risk was covered to the extent of unlimited liability of the Insurance Company.

(3.) ON the other hand, Mr. R.J. Punia, learned Counsel appearing for the appellant- owner drew the attention of the Court towards a judgment rendered by coordinate Bench of this Court in S.B. Civil Misc. Appeal No. 455/1997, The Oriental Insurance Company Ltd. v. Smt. Shakuntla Devi and others decided on 16th April, 2009 and the relevant portion of which is quoted below: