THE HON’BLE SRI JUSTICE D.S.R.VARMA CIVIL MISCELLANEOUS APPEAL No.2817 of 2003 Date: 12.08.2010 Between : Branch Manager, New India Assurance Company Limited, Macherla, Guntur District. … Appellant and A.P. State Road Transport Corporation, Rep.by its Managing Director, Musheerabad, Hyderabad and another. … Respondents THE HON’BLE SRI JUSTICE D.S.R.VARMA CIVIL MISCELLANEOUS APPEAL No.2817 of 2003 ORAL JUDGMENT: Heard learned Standing Counsel for the appellant-New India Assurance Company Limited as well as the learned Standing Counsel for 1st respondent-A.P. State Road Transport Corporation. 2. Aggrieved by the order and decree, dated 28.4.2003, in M.V.O.P.No.311 of 1999, passed by the Chairman, Motor Accident Claims Tribunal-cum-District Judge, Kadapa (for brevity “the Tribunal”), awarding a sum of Rs.69,184-55 ps towards the damages caused to the bus, bearing registration No.AP 9Z 8384, belonging to the 1st respondent-claimant in a motor accident that occurred on 20.8.1997, due to the rash and negligent driving on the part of the driver of the lorry, bearing registration No.ABK 9319, belonging to the 2nd respondent, the present civil miscellaneous appeal has been preferred by the appellant-insurer. 3. The particulars regarding the method and manner in which the accident took place are not referred to since already on record. The Tribunal, after appreciating the evidence on record, both oral and documentary, allowed the petition awarding a sum of Rs.69,184-55 ps holding the insurer as well as the owner of the offending lorry jointly and severally liable to pay the compensation. Aggrieved by the same, the present appeal is filed by the appellant-insurer. 4. It is contended by the learned Standing Counsel for the appellant-insurer that the policy of the offending lorry is only an Act policy and the liability of the insurer under the said policy is to the limited extent of Rs.6,000/- only. 5. The only point that arises for consideration in this appeal is whether the insurer is liable to pay more than the amount covered under the policy. 6. It appears that the offending lorry hit the bus belonging to the Corporation and caused damages. Because of the said damages, the Corporation could not run the said bus and the bus was kept idle for 18 days, thereby causing loss to a tune of Rs.54,000/- to the Corporation. In addition to that, the Corporation had incurred a sum of Rs.15,184-55 ps towards repairs of the bus. Accordingly, the petition was allowed awarding a sum of Rs.69,184-55 ps holding the appellant-insurer as well as the owner of the offending lorry jointly and severally liable to pay the compensation. 7. In this regard, clause (b) to sub-section (2) of Section 147 of the Motor Vehicles Act, 1988 (for brevity “the Act”) also makes it clear that only a sum of Rs.6,000/- is liable to be paid by the insurer in respect of the damages caused to any property of a third party. Therefore, in view of the nature of the policy and the limited extent of liability prescribed under clause (b) to sub-section (2) of Section 147 of the Act, I am to hold that the appellant-insurer is liable to pay to the limited extent of Rs.6,000/- only. 8. Further, the Tribunal had fastened the liability to pay the compensation jointly and severally both on the owner of the offending lorry as well as the appellant-insurer. Therefore, it is clarified that 1st respondent-Corporation may recover the balance amount of compensation, excluding the amount of Rs.6,000/- payable by the appellant-insurer, from the owner of the offending lorry. 9. In the result, the civil miscellaneous appeal is allowed as indicated above. There shall be no order as to costs. _______________________ JUSTICE D.S.R.VARMA 12.08.2010. Msr THE HON’BLE SRI JUSTICE D.S.R.VARMA CIVIL MISCELLANEOUS APPEAL No.2817 of 2003 12.08.2010 (Msr)