Jagannadha Rao, CJ.

This reference to a Full Bench has been made for a decision on the correctness of the Division Bench ruling in United India Insurance Co.Ltd. v. Surendran Nair (1990 (1) KLT 10). The point in issue is whether in view of the provisions of S.96(2) and (6) of the Motor Vehicles Act. 1939. it is open to the insurer to rely on a 'reservation clause' in the Policy and then to raise all the defences open to the insured against the third party. in an action for compensation filed by the third parly. The respondents-claimants contend. on the basis of the ruling in Surendran Nair's case (supra) that. notwithstanding the existence of any 'reservation clause' in the policy. ii is not permissible for the insurer to either contend that there is no negligence on the part of the insured or that the quantum of compensation awarded against the insured is excessive even when the quantum is within the statutory limits in S.95(2). It is true that the ruling in Surendran Nair's case (supra) supports the respondents' case for saying that in spite of a 'reservation clause'; the insurer cannot take such defences before the Tribunal or file an appeal against the award raising