M.G. Automobiles Vs. Raja Rao - Court Judgment

Excerpt:
motor vehicles act, 1939 - sections 96(1) & 110cc : motor vehicles act, 1988 (central act no. 59 of 1988) - sections 149 & 171 -insurer liable to pay amount insured, costs and interest.; reading of these two provisions make it clear that the insurer is liable to pay not only the amount for which the vehicle is insured but also the cost and the interest awarded by the tribunal thereon. - land acquisition act (1 of 1894)section 6 (1) :[p.d. dinakaran cj & v.g. sabhahit,j] challenge as to acquisition of land - quashing of section 6(1) notification - direction to hear the petitioners as required under section 5a of the land acquisition act review petition by the state after a lapse of 2590 days dismissal of appealed against the order passes in writ petition and review petition -delay of 3047 days held, sufficient cause for condoning the delay has not been made out. even on merits, the objections filed by the petitioners has not been considered and the single judge was justified in remanding the matter to the respondents to proceed with the acquisition proceedings from the stage of hearing the petitioners under section 5a of the act. writ appeal dismissed on the ground of delay and also on merit. limitation act (36 of 1963)section 5 :[p.d. dinakaran cj & v.g. sabhahit, j] condonation of delay- sufficient cause - consideration of challenge as to acquisition of land - quashing of section 6(1) notification - direction to hear the petitioners as required under section 5a of the land acquisition act review petition by the state after a lapse of 2590 days dismissal of appealed against the order passes in writ petition and review petition -delay of 3047 days held, sufficient cause for condoning the delay has not been made out. even on merits, the objections filed by the petitioners has not been considered and the single judge was justified in remanding the matter to the respondents to proceed with the acquisition proceedings from the stage of hearing the petitioners under section 5a of the act. writ appeal dismissed on the ground of delay and also on merit. - 15,000/- as well as the, costs.venkataraman, j. 1. sri s.p. shankar is directed to take notice for the second respondent. notice to the first respondent is dispensed with. by consent of both sides, this matter is taken up for final disposal.2. this appeal is filed by the second respondent, the owner of the vehicle, in no. m.v.c. 417/87 on the file of the additional m.a.c.t., chitradurga against that part of the judgment and award by which the tribunal has directed that he should pay the interest on the compensation awarded, to the claimant.3. it is undisputed that the vehicle in question was insured with the second respondent herein and that limit of the liability of the second respondent under the terms of the policy was rs. 15,000/-. the tribunal has awarded rs. 15,000/- as compensation. however, the tribunal has restricted the liability of the second respondent insurer only to rs. 15,000/- and absolved the insurer of the liability to pay the interest and costs thereon. the owner of the vehicle is directed to pay the interest and costs. it would appear that the tribunal thought that because the liability of the insurer was limited to rs. 15,000/-, the insurer cannot be required to pay interest on the sum of rs. 15,000/-. the attention of the learned member of the tribunal does not appear to have been drawn to section 96(1) of the motor vehicles act, 1939.section 96(1) of the motor vehicles act, 1939 reads thus:'if after certificate of insurance has been issued under subsection (4) of section 95 in favour of the person by whom a policy has been effected, judgment in respect of any such liability as is required to be covered by a policy under clause (b) of sub-section (1) of section 95 (being a liability covered by the terms of the policy) is obtained against any person insured by the policy, then, notwithstanding that, the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall subject to the provisions of this section, pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable, thereunder, as if he were the judgment-debtor, in respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments'.section 149 of the motor vehicles act, 1988 is similar to the above provision section 110-cc which is similar to section 171 of 1988 act makes a provision for awarding of simple interest. reading of these two provisions makes it clear that the insurer is liable to pay not only the amount for which the vehicle is insured but also the costs and the interest awarded by the tribunal thereon.4. for the above reasons this appeal is allowed and the judgment and award are modified by directing the second respondent insurer to pay even the interest awarded by the tribunal oh the sum of rs. 15,000/- as well as the, costs. parties to bear their own costs in this appeal.