1/2 S.B.CIVIL MISC. APPEAL NO.260/97 (United India Insurance co.Ltd. vs. Udai Singh & Ors.) DATE OF ORDER : 6/8/2009 HON'BLE DR.JUSTICE VINEET KOTHARI Mr.Paramveer Singh for the appellant. Mr.M.L.Khatri, for the respondent. This appeal by the Insurance company is directed against the award dated 23/3/1996 deciding claim case no. 73/94 (Udai Singh vs. Asu Singh ). The only grievance raised in this appeal is that while deciding issue no.6 in claim case no.73/94 the learned Tribunal has erred in not limiting the liability of the Insurance Company to the sum of Rs.6,000/- only as per the provisions of Section 147 (2) (b) of the Act, which provides that in respect of damages to any property of a third party, a limit of Rs.6,000/- is there for the insurance company. Learned counsel for the appellant relied upon the decision of Kerala High Court in the case of United India Insurance Co. Ltd. vs. K.Raveendran Nair and others – 2003 ACJ 2159. The learned Tribunal at page 9 of the impugned award has rejected the contention of insurance company on the ground that there is no reason to limit the liability of insurance company to Rs.6,000/- since the compensation has been determined by the Tribunal at Rs.13,250/- for the damages caused to the vehicle involved in the accident namely the Nissan truck. 2/2 Having heard the learned counsels and upon perusal of the provisions of Section 147 (2) (b) of the Act, this Court is of the opinion that learned Tribunal has erred in rejecting the contention of the insurance company in this regard. In view of clear provision of said Section of the Act the liability of the insurance company cannot exceed Rs.6,000/- in case of damages caused to the property of third party namely the vehicle in question. Therefore, present appeal of the insurance company is liable to be allowed to this extent and findings on issue no.6 in claim case no. 73/94 of the learned Tribunal deserve to be modified and it is held that insurance company is liable to pay only Rs.6,000/- in respect of damage to the vehicle in question. The remaining amount of compensation may be recovered, if already paid by the appellant insurance company, from the owner of the said vehicle. With this right to the appellant insurance company to recover the difference amount from the owner, the present appeal is allowed as indicated above. (DR.VINEET KOTHARI), J. item no.6 baweja/-