Case: New India Assurance Co. Ltd Vs. Vimal Devi &amp; Others

2. The appellant is aggrieved by the High Court Order that even though holding in express terms that the liability of the insurer was limited to Rs.50,000/and interest thereupon, went on to direct it to pay the entire compensation amount ofalong with interest, to the claimants and then to recover the amount beyond its liability of Rs.50,000/from the owner of the vehicle involved in the accident.

Reasoning:
7. The Avoidance Clause in the policy in this case makes all the difference and the direction of the High Court to the appellant, insurance company to make payment of the full amount of compensation to the claimants and to recover its dues from the owner of the vehicle is directly in accordance with that Clause. In our view, the submission of Mr. Calla is well founded. The appellant in this case can derive no benefit from the decision in C.M. Jaya, 2002 ACJ 271 (SC).