United India Insurance Co. Ltd. vs Smt. Shyamabai And 5 Ors.
2014 Latest Caselaw 2484 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD
 
 

?Court No. - 2
 

 
Case :- FIRST APPEAL FROM ORDER No. - 1912 of 2014
 

 
Appellant :- United India Insurance Co. Ltd.
 
Respondent :- Smt. Shyamabai And 5 Ors.
 
Counsel for Appellant :- Pankaj Rai
 

 
Hon'ble Rajes Kumar,J.

Hon'ble Om Prakash-VII,J.

This is an appeal by the insurer of Bus No.-MP.-20  P.A. 0339. On 6.10.2011, an accident took place between Indigo Car No. M.P.-36T-0520 and Bus. It appears that in the accident Indigo Car had been damaged. The owner of the Indigo Car filed claim petition. The Tribunal by the impugned order has awarded compensation at Rs.5,44,639/-.

Learned counsel for the appellant submitted that under the policy the appellant is only liable to indemnify the liability of the owner of the vehicle upto unlimited extent so far as the third person is concerned, but so far as damage of any property of the third party, in view of Section 147(2)(b) of the Act, the appellant is only liable to indemnify the damage to the extent of Rs.6,000/- only. Thus, the award of Rs.5,44,639/- is contrary to law.

Prima facie, we find substance in the argument of learned counsel for the appellant which requires consideration.

Admit.

Issue notice. The appellant may take steps to serve the respondents by registered post.

Until further orders, the effect and operation of the judgment and award dated 24.3.2014 passed by the Motor Accident Claims Tribunal/Additional District Judge Court No. 15, Jhansi in Motor Accident Claim Petition No. 211/2012 (Smt. Shyamabai vs. Haji Raseed Ahmad and others) shall remain stayed.

Office is directed to remit back the statutory amount to the concerned Tribunal within four weeks.

Order Date :- 3.7.2014

OP