( 1 ) ). THE dissatisfied defendant-Insurance Company is the appellant. The respondent laid the suit to recover Rs. 61,000/- comprised of Rs. 40,000/- towards repairs and replacements for the damage caused to the motor vehicle AAT-2545, in an accident occurred on March 30, 1976 and Rs. 21,000/- towards loss of profits during the interregnum. The trial Court decreed the suit for a sum of Rs. 40,000/-towards repairs and replacements but disallowed the rest of the claim.

( 2 ) ). The facts in a nutshell are that the respondent is the owner of the motor vehicle of 1963 model bearing AAT 2545. It was purchased by K. K. Swamy from the A. P. State Road Transport Corporation during the year 1973 from whom the respondent purchased for Rs. 35,000/ -. It was insured with the appellant for a maximum liability of Rs. 40,000/ -. It sustained extensive damage in the accident and the respondent intimated the appellant of the estimated damage under Ex. B-1 and thereafter the appellant s valuer, D. W 1 submitted his report Ex. B-11 and ultimately recommended to pay a sum of Rs. 9,242 - in his estimate Ex. B-2 which was offered to be paid to the respondent. Disagreeing with the offer