Rajesh Balia, J.-Heard learned counsel for the parties. This appeal is by the insurance company to limit its liability towards third party to indemnify the insured within the precincts of the statutory liability fixed under the Motor Vehicles Act, 1939 (in short ‘the Act of 1939’), which was in force at the time the accident in question had taken place.

2. This is the second time in this case the insurance company is before this court.

3. The accident in question took place on 20.9.1984 resulting in the death of one Prabhu Ram whose legal representatives are respondent Nos. 1 to 9. The respondent No. 10 is driver and the respondent No. 11 is owner of the vehicle.

4. TheMotor Accidents Claims Case No. 119 of 1984 was lodged by the claimants and by award dated 27.4.1988, a sum of Rs. 1,04,000 was determined as compensation payable to the claimants which the owner of the vehicle was liable to pay to the dependants/legal representatives of the deceased, Prabhu Ram. That part of the award is not in dispute, that is to say, legal liability of the owner towards claimants arising from the accident is not in issue in this appeal.

5. The vehicle in question was insured with the pres