HONOURABLE SRI JUSTICE P. SWAROOP REDDY CIVIL MISCELLANEOUS APPEAL No.3635 OF 2003 JUDGMENT: Questioning its liability for payment of compensation and also quantum of compensation awarded in O.P. No.96 of 1999 vide order dated 20-05-2003 by the learned Chairman, Motor Accident Claims Tribunal – cum – Additional District Judge, Adilabad, the United India Insurance Company Limited preferred this Civil Miscellaneous Appeal. 2. Respondent Nos.1 to 6, who are wife, children and mother of the deceased Kota Shankaraiah, are claimants and respondent No.7 is owner of the Jeep bearing No.AP1 – T – 9063 involved in the accident. 3. The case of the claimants before the Tribunal is that on 07-09-1998 while the deceased along with some others was returning in the Jeep bearing No.AP1 – T – 9063 from Adilabad to Mancherial, driver of the jeep drove it in a rash and negligent manner and high speed and lost control over the vehicle, as a result, Jeep turned turtle and on account of that deceased sustained several injuries all over the body and died on the spot while other inmates of the vehicle sustained injuries. A case in Crime No.82 of 1998 was registered against the driver of the jeep for the offences under Sections 304-A and 337 IPC by the Utnoor Police Station and investigated into. The deceased used to do toddy tapping and also agriculture and he was earning a sum of Rs.200/- a day on toddy tapping and Rs.30,000/- per annum from agriculture. Hence, they claimed a compensation of Rs.3,00,000/-. 4. The owner of the Jeep that involved in the accident and its insurer filed their counters separately denying the case of the claimants and its liability for payment of compensation. 5. Based on the pleadings, the following issues were famed for trial by the Tribunal: “1. Whether the deceased Kota Shankaraiah died in the accident occurred on 7-9-1998 due to rash and negligent driving of Jeep bearing No.AP-1-9063 by its driver? 2. Whether the petitioners are entitled to any compensation? If so, to what amount and against whom? 3. To what relief?” 6. To prove their case, claimants got examined PWs.1 and 2 and got marked Exs.A-1 to A-8. On behalf of the owner of the jeep and its insurer, RW.1 was examined and Exs.B-1 was marked. 7. Based on the evidence on record and after an elaborate consideration of the same, Tribunal awarded a compensation of Rs.2,10,000/- to the claimants as against their claim of Rs.3,00,00/- against both the respondents for payment of compensation jointly and severally with interest at 9% per annum. Being aggrieved of the same, insurance company preferred this appeal . 8. Though the insurance company, appellant, is disputing the quantum of compensation awarded by the Tribunal as well, its main contention is that it is not liable for payment of compensation to the claimants as there was violation of permit conditions of the insurance policy of the Jeep involved in the accident as 15 persons/passengers were travelling in the jeep at the time of accident. 9. Hence, the point that arises for consideration is whether the Tribunal erred in fastening liability for payment of compensation on the insurance company ? 10. There is no dispute about the Jeep being insured with the insurance company. The contention of the insurance company is that when the permitted passengers strength was ‘6’ including driver of the vehicle, 15 passengers travelled in the Jeep at the time of accident. But, in this case, more than 6 passengers did not claim compensation. Such being the case, claim of the claimants for compensation cannot be denied on the ground that on account of violation of terms of the insurance policy, insurance company is not liable for payment of compensation. 11. Considering the circumstances, I see no merit to entertain this appeal and is liable to be dismissed. However, as per the latest legal position, the rate of interest can be reduced from 9% per annum to 6% and it is accordingly reduced. 12. With the above modification in rate of interest alone, the Civil Miscellaneous Appeal is allowed in part. No order as to costs. ______________________ P. SWAROOP REDDY, J November 23, 2010. PV