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1998 Supreme(SC) 673

SUPREME COURT OF INDIA
A.P.Misra : G.B.Pattanaik
United India Insurance Company Limited
Versus
Jagdish Singh
Case No. : 9130 of 1996
Date of Decision : 7/22/98

(1) THIS appeal is directed against the order of the Punjab and Haryana High court refusing to grant stay while the appeal filed by the insurer is pending before it. The Motor Vehicles Claims tribunal has awarded compensation and the insurer has filed the appeal contending that the insurer will not be liable at all. It is not necessary for us to go into the merits of the said contention which will be decided in the pending appeal, but the question that arises for consideration is whether at this stage while the appeal is pending, the insurer would be called upon to pay the entire amount awarded or a part of it. Admittedly, under the Statute a sum of Rs. 25,000.00 is payable for no fault liability. There is no justification for the insurer not being paying the said amount. In view of the stand taken by the insurer in the pending appeal to the effect that the insurer will not be liable at all and taking the statutory provisions into consideration we modify the impugned interim order of the High Court and direct that. the appellant shall pay to the claimants a sum of Rs. 25,000.00 within four weeks from today and on such payment be made the balance amount would remain stayed till the disposal of the appeal by the High court. We make it clear that if this amount of Rs. 25,000.00 is not paid within four weeks from today, the order of stay shall stand vacated. This appeal is allowed accordingly with no order as to costs.

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