Partly allowed

M/s.the New India Assurance Co.Ltd v. Mogili Narayana

Telangana HC8 Feb 2016CMA/601/2004

Case brief

AI extract

What is this about?

The appellant Insurance Company challenged the Tribunal's award of Rs.17,500/- for property damage in a motor accident. The Court held that the Company is statutorily liable for Rs.6,000/- but allowed the claimant to withdraw an earlier deposited amount bearing interest, partly allowing the appeal.

What did the court decide?

Appeal partly allowed; claimant permitted to withdraw deposited amount with interest.

M/s.the New India Assurance Co.Ltd Vs… — Contract and Commercial Disputes | Telangana HC (2016)

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THE HON’BLE SRI JUSTICE A.RAMALINGESWARA RAO

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C.M.A. No.601 of 2004

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JUDGMENT:

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This appeal is preferred by respondent No.3-Insurance Company in O.P. No.492 of 1991 on the file of the Motor Accidents Claims Tribunal-cum-District Judge, Khammam (for short, ‘the Tribunal’).

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The said O.P. was filed claiming a compensation of Rs.60,000/- for the injuries sustained by the petitioner in a motor accident that occurred on 10.06.1991 at the outskirts of Tirumalayapalem village. It was alleged in the O.P. that when the petitioner was driving his bullock cart, carrying P.V.C. water pipes, a lorry bearing registration No.AHJ 4597, driven by respondent No.1, came in opposite direction in a rash and negligent manner and dashed the bullock cart of the petitioner and ran over both the bullocks of the cart. In the said accident, the petitioner sustained injuries and both the bullocks died. The petitioner was aged 30 years and was working as an agricultural coolie and also driving bullock cart. He was earning Rs.25/- per day on agricultural work and Rs.40/- per day as driver of bullock cart.

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Before the Tribunal, respondent Nos.1 and 2 filed their common written statement and respondent No.3 filed its written statement, opposing the claim; respondent No.4 remained ex parte.

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On the basis of evidence, the Tribunal held that the accident was occurred due to rash and negligent driving of the lorry bearing registration No.AHJ 4597 by its driver. The Tribunal awarded a compensation of Rs.17,500/-, by its award dated 25.03.1997,.

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The present appeal is filed by the Insurance Company

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stating that the liability of insurance company towards the property damage is only to the extent of Rs.6,000/- in all and not beyond that.

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In view of the statutory liability of the Insurance Company, the Insurance Company is liable only to the extent of Rs.6,000/-. The injured claimant can recover the balance amount from the owner of vehicle.

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However, in view of the direction of this Court dated 08.09.1998, the Insurance Company deposited half of the decretal amount and in view of this order it can withdraw the amount over and above the statutory liability of Rs.6,000/-. But, in view of the deposit made in 1998, the amount of Rs.6,000/-, which the Insurance Company is liable to pay, should bear interest and the claimant is permitted to withdraw the said amount along with interest.

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Accordingly, this appeal is partly allowed. No order as to costs. Miscellaneous Petitions, if any, pending shall stand closed.

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________________________________ A.RAMALINGESWARA RAO, J 08.02.2016 MVA

M/s.the New India Assurance Co.Ltd v. Mogili Narayana

Case brief

What is this about?

What did the court decide?

M/s.the New India Assurance Co.Ltd v. Mogili Narayana

Case brief

What is this about?

What did the court decide?

What the court decided

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