(This MFA is filed u/s.173(1) of MV Act against the judgment and award dated 21-12-2006 passed in MVC.No.4405/2006 on the file of the XIII Addl. SCJ & Addl. Judge & Member MACT, Court of Small Causes, Metropolitan Area, Bangalore, (SCCH.No.15), awarding compensation of Rs.3,40,000/- with interest at 6% p.a. from the date of petition till date of deposit.)

It is a case of death of one Nagaraju in a motor road accident occurred on 19-5-2006. His wife and son are the claimants before the Tribunal and they are in appeal seeking enhancement of compensation.

2. Brief facts of the case are, that on 19-5-2006 at about 6.30 a.m. when the deceased Nagaraju was proceeding in a maxi cab bearing registration No.KA-03-A-0847, the vehicle was driven in a rash and negligent manner by its driver on Anekal – Chandapura Road and it hit against a Banyan tree near Havadadenahalli village. The deceased Nagaraju sustained grievous injuries and he was immediately shifted to Anekal Government Hospital, wherein first aid treatment was given, and thereafter he was referred to Bangalore Hospital and he succumbed to injuries on the way to the hospital.

3. Both the owner of the vehicle and the Insurance Company have filed their separate statement of objections. The Insurance Company in its statement of objections though has denied the case of the claimants, but admitted the insurance, stating that its liability is subject to the terms and conditions of the insurance policy and to the validity of the RTO records, permit, provisions of Motor Vehicles Act and effective valid driving license of the driver of the vehicle involved in the accident.

4. On the basis of the pleadings of the parties, the Tribunal has framed as many as three issues.

5. The claimants, in order to prove their case, have examined the first claimant Mahadevamma as P.W.1, one Prabhakar Reddy as P.W.2 and another witness by name Chandrashekar Shetty as P.W.3 and produced ten documents which are marked as Ex.P-1 to Ex.P-10. The owner did not enter the box. On behalf of the appellant-Insurance Company, its Administrative Officer by name B.R. Ravi Shankar was examined as R.W.1 and produced a copy of the Insurance Policy and vehicle permit which are marked as Ex.R-1 and Ex.R-2 respectively.

6. The Tribunal, on appreciation of the oral and documentary evidence, has held that Nagaraju was died in a motor road accident occurred on 19-5-2006, due to the rash and negligent driving of the maxi cab by its driver and thereby the claimants have established the actionable negligence on the part of the driver of the maxi cab and they are entitled to seek compensation. Thereafter, the Tribunal considering the age of the deceased, his salary and other material evidence on record, has awarded a sum of Rs.2,80,000/- under the head of loss of dependency and Rs.60,000/- under the conventional heads. In all, it has awarded a sum of Rs.3,40,000/- with interest at 6% p.a. from the date of petition till the date of deposit.

7. The Insurance Company has challenged the award of the Tribunal in this appeal both on the ground of fastening of the liability against the Insurance Company as bad in law and on the ground that the quantum of compensation awarded by the Tribunal is excessive.

8. Sri. O. Mahesh, learned counsel appearing for the Insurance Company, contends that the liability of the Insurance Company is subject to the terms and conditions of the Insurance policy and permit of the vehicle. He contends that admittedly the vehicle involved in the accident has got contract carriage permit, but it plied as a stage carriage, as per the information furnished to the Police by one Sri. Manjunath and as such, there is violation of terms of the vehicle permit and therefore, the Insurance Company is not liable to pay any compensation.

9. Per contra, Sri. Papireddy, learned counsel appearing for the owner of the vehicle, contends the owner has also filed his detailed statement of objections contending that the ve