FA/250/1991 1/5 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD FIRST APPEAL No. 250 of 1991 For Approval and Signature: HONOURABLE MR.JUSTICE KS JHAVERI ========================================================= ORIENTAL INSURANCE CO LTD - Appellant(s) Versus RAMJIBHAI DAHYABHAI PARMAR & 2 - Defendant(s) ========================================================= Appearance : MR RAJNI H MEHTA for Appellant(s) : 1, MR SANDIP C SHAH for Defendant(s) : 1, None for Defendant(s) : 2 - 3. ========================================================= CORAM : HONOURABLE MR.JUSTICE KS JHAVERI Date : 26/07/2006 ORAL JUDGMENT 1. This appeal is directed against the judgement and award dated 12.12.89 passed by the Motor Accident Claims Tribunal No.2 (Aux.), Ahmedabad, in MACP No.235 of 1987 whereby the said claim petition was allowed and the claimant was awarded a sum of Rs.30800/- along with interest at the rate of 9% per annum payable by the original respondent nos. 2 & 3. 2. The claim petition was filed in pursuance of an accident which had occurred on 12.09.86 at about 09.30 am FA/250/1991 2/5 JUDGMENT when the original claimant was travelling in the auto rickshaw bearing no. GRO 280 driven by original opponent no.1. When the auto came on the road opposite Site and Service office, it turned upside down as a result of which the original claimant was thrown out. He sustained injuries on his left leg. The original claimant therefore filed claim petition claiming Rs. 55,000/- towards compensation. 3. Learned counsel for the appellant has contended that in view of the specific provision contained in Section 95(2)(b)(ii) of the Motor Vehicles Act, the Insurance Company's liability in respect of passenger carried for hire or reward is limited to Rs.15000/-. The relevant part of the said section as existing at the time of the accident reads as under: “95.(2) subject to the proviso to sub-section (1), a policy of insurance shall cover any liability incurred in respect of any one accident up to the following limits, namely:- (a) xxx xxx xxx (b) where the vehicle in which passengers are FA/250/1991 3/5 JUDGMENT carried for hire or reward or by reason of or in pursuance of a contract of employment, - (i) in respect of persons other than passengers carried for hire or reward, a limit of fifty thousand rupees in all, (ii) in respect of passengers, a limit of ten thousand rupees for each individual passenger.” 5. Learned counsel for the respondent-original claimant is not able to contest the aforesaid position. Therefore the award of the Tribunal is patently erroneous. 4. A perusal of the said section shows that the liability in respect of passengers, is limited to an extent of Rupees Ten Thousand for each individual passenger. The accident in question is of the year 1986 and therefore the liability would not be more than Rs.15000/- qua the Insurance Company. This view is supported by a decision of this Court in the case of United India Fire and General Insurance Co. Ltd. Vs. Bachu Kaba Satrotia and ors., reported in 1986(1) GLR 463 wherein it is held that under section 95(2) of Motor Vehicles Act (IV of 1959) the liability of insurer in FA/250/1991 4/5 JUDGMENT respect of a passenger carried for hire or reward by statute is limited to Rs.10000/- per individual passenger which was later enhanced to Rs. 15000/-. 6. In the premises aforesaid, the present appeal is partly allowed. It is held that the liability of the present respondent no.3 i.e. original opponent no.2 shall remain intact to meet the entire claim awarded with interest as awarded by the Tribunal. However, so far as the present appellant Insurance Company is concerned, the award will stand modified and the award amount awarded against the appellant will be Rs.15000/- with running interest thereon at the rate of 12% per annum from the date of the application till realization. It will be open to the original claimant to recover the remaining amount from respondent no. 3 i.e. original opponent no. 2. The remaining amount lying in the FDR along with interest shall be refunded to the Insurance Company. If the amount has already been withdrawn by the original claimant the same shall be recovered from present respondent no.3. The award of the Claims Tribunal shall stand modified accordingly. No order as to costs. FA/250/1991 5/5 JUDGMENT [K.S. JHAVERI, J.] Divya//