Puja Roller Flour Mills (Pvt.) Ltd. vs Smt. Satya Bala Jain and Others

G.C. Garg, J.—During the course of hearing of Civil Misc. applications learned counsel for the parties agreed that the main appeal itself may be taken up for disposal in view of the judgment of a Division Bench of this Court in F.A.O. No. 1174 of 1991, decided on 22.11,1991 (National Insurance Company Ltd. v. Raj Rani and Ors.).

In a claim petition filed by the Satya Bala Jain and three others, learned Motor Accidents Claims Tribunal, Karnal awarded a sum of Rs. 6,72,000/- as compensation in favour of the claimants on account of death of A.R. Jain. The claim was allowed with costs and interest at the rate of 12% per annum w.e.f. the date of filing of the claim petition i.e. 9.10.1989 to the date of actual payment. The amount of compensation was appropriated between the claimants as detailed in the award under appeal. National Insurance Company, respondent No. 6 was held liable to make payment of compensation to the extent of Rs. 1,50,000/- and the remaining amount of compensation was ordered to be paid by M/s. Puja Roller Flour Mills Pvt. Ltd. the appellant herein.

Puja Roller Mills i.e. the owner of the offending vehicle has filed this appeal against the award of the learned Tribunal. The only grievance of the appellant is that the liability of the Insurance Company is unlimited and the tribunal has erred in holding that the Insurance company was only liable to pay the amount to the extent of Rs. 1,50,000/-. Learned counsel for the appellant submitted that accident in this case had taken place on 20.9.1989 and the new Act came into force w.e.f. 1.7.1989 and under the new Act the liability of Insurance Com. is unlimited and the provisions of the new act have not been taken note of by the Tribunal.

This precise contention was considered by a Division Bench of this Court in Raj Rani''s case (supra) and on a consideration of the matter, the Division Bench came to the conclusion that the new act would apply and the Insurance Company would be liable for the payment of the entire amount. Thus, in view of the observations of the Division Bench in the aforesaid case, this appeal has to be allowed, for the accident in the present case took place after coming into force the amended Motor Vehicles Act whereby the liability of the Insurance Company is unlimited. Accordingly, the finding recorded by the Tribunal whereby the liability of the National Insurance Company, respondent No. 6 has been restricted to the extent of Rs. 1,50,000/- only is set aside and while allowing this appeal it is held that the liability of the said insurance company is unlimited and its liability to pay the entire amount of compensation as awarded by the learned Tribunal shall be joint as well as several. No costs.