M.S.Liberhan, J.

1. It is expedient to collate the facts and circumstances under which this case has come before us. The main narration of events and circumstances are taken from FAO 725 of 1995 which was referred to the Full Bench and was argued as such.

2. Kinara Tubes Private Ltd. was the registered owner of truck No. HYW-6262 which was insured with the appellant. Rajbir Singh was employed as a driver with Kinara Tubes Pvt. Ltd. Krishan deceased was killed on 24.5.1993 while crossing the road in an accident with the above referred truck being driven rashly and negligently by Rajbir Singh driver.

3. Smt. Santro Devi widow of Krishan Kumar deceased and his three minor children claimed compensation of Rs.5 lacs for the death caused by rash and negligent driving from the insurance company, the owner and the driver on account of their statutory as well as tortious liability. A compensation of Rs.2,59,200/- with 12% P.A. interest was awarded to the claimants against the owner, driver and the appellant insurance company jointly and severally. The owner was held liable for tortious act of his driver a employee vicariously.

4. The driver and owner of the truck jointly defended th