Judgment

Nanavati, J.-These appeals were earlier placed for hearing before a Division Bench consisting of our learned Brothers Bharucha and Majmu­dar, JJ. on 20.2.1996. Upon hearing the counsel, the Division Bench passed the following order:

“What we are concerned with in these matters is the correct interpre­tation of Section 95 of the Motor Vehicles Act, 1939. The question arises, specifically, in the context of the death of the owner of goods being carried in a goods vehicle, and the question is whether the insurer of the goods’ vehicle is liable to pay the compensation awarded to his legal heirs. We note that there are divergent views expressed by the High Courts. Apart from that, in our view, a decision of a bench of two learned Judges in Pushpabai Parshottam Udeshi & Ors. v. M/s. Ranjit Ginning & Pressing Co. Pvt. Ltd. & Anr., AIR 1977 SC 1735, needs to be reconsidered in greater detail. In these circum­stances, it is appropriate that these matters should be heard and disposed of by a bench of three learned Judges.”

2. Accordingly, they have been placed before us for final disposal. In Civil Appeal Nos. 3659 of 1993 and 880/86, the deceased were owners of the goods and as such w