The main legal point established in the judgment is that an insurer cannot maintain a joint appeal with the owner if defense on any ground under Section 149(2) of the Motor Vehicles Act, 1988 is not available.

1. Leave granted.

Appellants are widow and minor children of George who died in a motor vehicle accident which occurred on May 28,1989. George was riding a scooter. It was hit by a bus driven by Mohanan, the third respondent in a rash and negligent manner. Bus was owned by N.K. Raju, the first respondent. The insurer was the Oriental Insurance Co. Ltd., the second respondent. Appellants are aggrieved by the judgment dated January 6,1998 of the Division Bench of the High Court of Kerala which reduced the amount of compensation arising out of the accident from Rs. 3,78,000/- awarded by the Motor Accident Claims Tribunal (for short, the 'Claims Tribunal') to Rs. 2,27,320/-.

2. George, the deceased was 36 years of age at the time of the accident. His income was Rs. 2,000/- per month. He was an actor-cum-secretary of a leading drama troupe which was staging drama in India and abroad. After deducting his personal expenses, his income was determined at Rs. 1600/- per month by the Claims Tribunal. Applying multiplier of 20, compensation amount was fixed at Rs. 3,78,000/- by the Claims Tribunal. The Claims Tribunal gave an award dated 10.1.1991 for Rs. 3,78,000/- with interest @ 12% per annum from September 1, 1989 with cost. The owner of the Bus, N.K. Raju, and the insurer filed against the order of the Claims Tribunal under S.173 of the Motor Vehicles Act, 1988 (for short, the 'Act') S.173 entitles any person aggrieved by an award of the Claims Tribunal to prefer an appeal to the High Court.

3. In view of the decision of the Claims Tribunal, it could not be said that N.K. Raju, the owner could be an aggrieved person for him to file any appeal against the award. We have gone through the impugned judgment of the High Court. There is no mention in whole body of the judgment as to how N.K. Raju felt aggrieved and what was his argument raised against the award of Claims Tribunal. There is no challenge to the finding that the bus was being driven by the third respondent in rash and negligent manner.

4. Under S.149 of the Act, it is the duty of the insurer to satisfy the award against the person insured in respect of third party risks. It is not that liability of the insurer in the present case is being disputed. Insurer can defend the proceedings before the Claims Tribunal on certain limited grounds. Sub-ss. (1), (2) and (7) of S.149 of the Act are relevant, which are as under:

"149. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks.- (1) If after a certificate of insurance has been issued under sub-s. (3) of S.147 in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under clause (b) of sub-s. (1) of S.147 (being a liability covered by the terms of the policy) or under the provisions of S.163A is obtained against any person insured by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this Section, pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment debtor, in respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgment.

(2) No sum shall be payable by an insurer under sub-s. (1) in respect of any judgment or award unless, before the commencement of the proceedings in which the judgment or award is given the insurer had notice through the Court or, as the case may be, the Claims Tribunal of the bringing of the proceedings, or in respect of such judgment or award so long long as execution is stayed thereon pending an appeal, and an insurer to whom notice of the bringing of any such proceedings is so given shall be entitled to be made a party