National Insurance Co. Ltd. vs K. Ramachandran and Another

M. Karpagavinayagam, J.—This appeal and the cross objection could be disposed of on a short ground.

The only point urged by the Counsel for the appellant-Insurance Company is that the award of the Tribunal directing the Insurance Company to

pay the compensation is wrong, since transfer/sale of the motor vehicle had not been intimated to the Insurance Company and as such, the

Insurance Company is not liable to be fastened with the liability.

Though the Full Bench of this Court in Saroja and Ors. v. Gopal and Ors. 1999 2 LW 11 : II (1999) ACC 74, would accept this point which

has been raised in this appeal, it has been brought to the notice of this Court that the Apex Court recently in the decision reported in G. Govindan

Vs. New India Assurance Co. Ltd. and Others, , that even in the absence of intimation about the transfer or sale to the Insurance Company, the

Insurance Company cannot be exonerated from the liability with regard to third party.

Therefore, this appeal fails on this ground in view of the view expressed by the Supreme Court in the decision cited supra.

The Counsel for the cross objection would submit that even when the appeal filed by the Insurance Company is dismissed on the ground that

there is no merit, the cross objection could be considered in view of the decision of the Apex Court in Superintending Engineer and Others Vs. B.

Subba Reddy, , in which it is held that the cross objection is to be treated as an appeal and even when the main appeal is dismissed, the cross

objection could be heard and disposed of independently.

However, it is brought to my notice by the Counsel appearing for the Insurance Company that this Court in United India Insurance Co. Ltd. Vs.

Rajammal and Others, ; and United India Insurance Co. Ltd. v. M.R. Subramanian 1996 2 ACJ 1216, in which, it is held that when the appeal by

the Insurance Company is dismissed, then the cross objection has to be dismissed.

But, however, in view of the Supreme Court decision referred to above, I am of the view that in the event if the cross objector succeeds, it

would ultimately affect the Insurance Company only in the instant case and as such, I could consider the cross objection independently.

In that view of the matter, I am constrained to go into the quantum also.

This case relates to the injuries sustained by the claimant in an accident that took place on 4.10.1991. The claimant suffered permanent disability

of 60 per cent As against the total compensation of Rs. 1,50,000/- claimed, the Tribunal awarded Rs. 70,000/- alongwith interest at the rate of 12

per cent per annum.

It is seen from the records that he was treated as an out-patient. However, P.W. 2 Doctor would say that he sustained a fracture. It is not the

case of the claimant that due to the injury, he lost the job.

Under these circumstances, the award of Rs. 70,000/- cannot be said to be on the lower side. The quantum fixed by the Tribunal, in my view,

is adequate and just.

In the result, both the appeal and the cross objection are dismissed. No costs.