The short question that arises for consideration in these group of appeal is where an insured has not preferred an appeal under section 173 of Motor Vehicles Act (hereinafter referred to as Act) against an award given by Motor Accident Claims Tribunal, is it open to the insurer to prefer an appeal against the award questioning the quantum of the compensation where in the policy of Insurance the right to contest such award on merits has been reserved.

2. Ld. MACT Kargil adjudicated upon nine claim petitions filed under section 166 of the Act arising out of the same accident occuring on 29-1-2001 at Sher Ali Thang in Kaksar area of District Kargil. The vehicle involved in the accident was a State Road Transport Corporation passenger bus bearing No. JK01Y-0212 wherein some of the passengers had died. Ld. Tribunal passed the awards by its Single Judgment dated 16-12-2001 awarding various amounts of compensation against SRTC and directed its payment by the Insurance company in each claim petition. The owner of the vehicle, SRTC has not filed any appeal against the award but the insurance company has come up in appeal.

3. The appellant Insurance Company has filed Civil Appeal Nos. 18/02,19/02,20/02,21/02,22/02 and 23/2002 challenging the giving of the awards by the Ld. Motor Accidents Claims Tribunal Kargil in favour of the claimants against the owner SRTC by its judgment dated 16-12-2001 and whereby the compensation awarded has been directed to be paid by the appellant, on the grounds; that the quantum of compensation has not been properly assessed by applying suitable multiplier to the monthly income of the deceased not rightly assessed.

4. Ld. counsel for the appellant has submitted that Insurance company the appellant is entitled to challenge the award of the claims Tribunal even in the absence of the appeal of the insured, on merits because in the Insurance policy right to contest the liability of the Insurance company has been reserved. In support of his contention he seeks to rely upon a Full Bench judgement of this court reported in AIR 1982 J&K page 105, on the other hand, contention of LC for the respondents/ claimants is that Insurance company is not so entitled in view of the Judgment rendered by the Honble Supreme Court in the case reported in AIR 2002 SC 3350. Before deciding the controversy it will be apt to notice the following provisions of Motor Vehicles Act:-

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-sec. (3) of Sec. 147 in favour of the person by whom a policy has been effected, judgement or award in respect of any such liability as is required to be covered by a policy under clause (b) of sub-sec. (1) of Sec. 147 (being a liability covered by the terms of the policy) or under the provisions of sec. 163-A 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 judgement 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 judgements.

(2) No sum shall be payable by an insurer under sub-sec. (1) in respect of any judgement or award unless, before the commencement of the proceedings in which the judgement 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 judgement or award so 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 ma

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