1. What is the extent of Insurance Companys liability in a case where it fails to plead limited liability, but places on record the original Insurance policy indicating the limit of its liability. Can the Company be burdened with liability in excess of the limit contained in the policy. In other words should the liability of Company be treated as unlimited merely because it had failed to take the plea of limited liability in its written-statement? This interesting question falls for determination in this appeal.

2. The controversy arises out of a claim petition filed by claimants of one Molvi Abdul Ghani who was killed in a road accident at Pul Doda on Aug.7, 1980. In reply to the claim petition, appellant company did not plead limited liability in its written statement. It, however, placed on record original Insurance Policy which indicated that its liability was limited to to Rs 50,000/-. MACT, Jammu awarded a compensation of Rs 92, OOO/- to the claimants and fastened the entire liability on the company on the ground that it had failed to specifically plead its limited liability The Tribunal ignored the original Insurance Policy from consideration and relying upon a Single Judge j

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