An insurance company cannot rely on an exclusion clause to avoid liability unless the insured has committed a breach of a specified condition of the insurance policy.

1. This judgment will dispose of F. A. O. No.132 of 1987 filed by the New India Assurance Co. Ltd. , and Cross-Objection No.1 C11 of 1988 filed by Pritam Bus Service, respondent No.3, and Surinder Singh, respondent No.4.

2. The New India Assurance Co. Ltd. (hereinafter referred to as "the appellant") has challenged the award of the Motor Accidents Claims Tribunal only to the extent to which it has been held liable to pay the amount of compensation. In cross-objection, respondents Nos.3 and 4 pleaded that it was a case of composite negligence and not contributory negligence and the liability of all the respondents ought to have been joint and several.

3. In order to appreciate the submissions raised by learned counsel for the appellant, it is necessary to submit a few facts stated in the pleadings : THE FACTS :

4. Avtar Singh, the deceased, was travelling in bus bearing registration No. PAB 7027 owned by Pritam Bus Service, respondent No.1, and driven by Surinder Singh, respondent No.2 on the fateful day May 4, 1985, When the bus reached near Attarsar at a distance of about four miles from Doraha, another bus, bearing registration No. PJG 223, owned by the Punjab Roadways came from behind and hit it. As a result thereof, Avtar Singh, the deceased, fell down from the bus and suffered injuries. He was removed to C. M. C. , Ludhiana, where he succumbed to the injuries on the following day. Bus No. PAB 7027 was insured with the appellant. The other bus involved in the accident was owned by the Punjab Roadways and was not insured. The accident occurred due to rash and negligent driving of the drivers of both the vehicles.

5. The deceased was employed as a driver with Messrs. Malwa Transport, T. P. Nagar, Meerut, on a monthly remuneration of Rs.1,000. The claimants are the widow and minor children of the deceased.

6. The respondents contested the claim of the claimants.

7. The appellant specifically pleaded that its liability was limited to the extent of Rs.15,000 only.

8. The pleadings of the parties gave rise to the following issues : 1. Whether the death of Avtar Singh took place in an accident involving bus No. PAB 7027 and PJG 223 2. Whether the accident took place on account of rash and negligent driving of Surinder Singh 3. What compensation the claimants are entitled to receive and from whom 4. Relief.

9. Issue No.1 was answered in favour of the claimants. Under issue No.2, it was held that the drivers of both the vehicles involved in the accident were equally responsible for causing the accident as they both were rash and negligent. Under issue No.3, it was held that the amount of compensation will be paid in equal shares by the owners of the respective vehicles involved in the accident, namely, Pritam Bus Service and Punjab Roadways. Since the bus, bearing No. PAB 7027, was insured with the appellant and the limit of liability under the insurance policy, exhibit R-1, was Rs.1,50,000, the liability of the owner of the bus, bearing No. PAB 7027, was to be met by the appellant within the limit of Rs.1,50,000 and the liability of bus No. PAB 7027 was co-extensive with that of the owner.

10. Mr. L. M. Suri, learned counsel for the appellant, raised the following two submissions, namely, (i) the deceased was travelling on the roof of the bus contrary to the provisions of Sec.82 of the Motor Vehicle Act (hereinafter referred to as "the 1939 Act"), the insurer is not liable, (ii) the liability of the insurance company is limited to the extent of Rs.15,000.

11. Before answering the legal submissions raised by learned counsel for the appellant, a finding has to be recorded with regard to the manner in which the accident took place.

12. Aw-2, Surinder Singh, was travelling with the deceased on the roof of the bus, bearing No. PAB 7027. He stated that the conductor of the bus told them to sit on the roof of the bus as the bus was overcrowded. They along with 10 to 12 other passengers sat on the roof of the bus. He was cross-exa