B.A. Khan. - Appellant company seeks setting aside of judgment/award dated 31.1.1990, passed by M.A.C.T., Jammu, awarding compensation of Rs. 1,00,000/- along with interest at the rate of 12 per cent per annum to respondent Nos. 1 to 3.

2. The ground taken is that Tribunal had wrongly determined the liability of the appellant company as unlimited, when the same was limited to Rs. 50,000/- as per the terms, of insurance policy. It is also pointed that the Tribunal had miscalculated the compensation amount casting an additional liability of Rs. 10,000/- on the company.

3. The short controversy requiring determination is whether in the facts and circumstances of the case liability of the insurance company could be said to be unlimited or limited to Rs. 50,000/-, as claimed. It is well settled that liability of the insurance company must be held to be unlimited, unless specific plea is taken by the company in defence that its liability is limited and that there is the policy of insurance on record to substantiate it. This position is established from a long line of decisions of the various High Courts. Reference in this regard can be made to:

(i) General Assurance Society Ltd. v. Avtar Si

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