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2004 Supreme(SC) 67

DORAISWAMY RAJU, ARIJIT PASAYAT
National Insurance Co. LTD. – Appellant
Versus
Keshav Bahadur – Respondent


JUDGMENT

Arijit Pasayat, J.-Leave granted.

2. National Insurance Company Limited (hereinafter referred to as the insurer ) questions legality of the judgment of a Division Bench of the Jharkhand High Court holding that the insurer has to pay the compensation of Rs. 72,000/- awarded to the legal representatives of one Hasta Bahadur (hereinafter referred to as the deceased ) who lost his life in a vehicular accident on 5.6.1987. The deceased was working as a Chowkidar of Hydel Project, Sikidri. A claim petition was filed by his sons under Section 110A of the Motor Vehicles Act 1939 (in short the Act ). The Motor Vehicle Accidents Tribunal (hereinafter referred to as the Tribunal ) awarded compensation of Rs. 72,000/- along with interest @ 12% per annum. The amount was directed to be paid within 60 days. It was further directed that in case of failure to pay within 60 days, the rate of interest would be 18%. The insurer questioned the legality of the direction that the whole amount of compensation was to be paid by the insurer; and the direction regarding default rate of interest. According to it, the liability was limited to Rs. 50,000/- in terms of Section 95(2)(b)(i) of the Act;




























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