Shri Suresh Kumar vs Sh. Jarnail Singh and others

M.S. Liberhan, J.—By this appeal, the Appellants has challenged the fixation of liability for compensation with respect to the claim between the Appellant and the Insurance Co. The claimant has filed cross objection claiming compensation from the Insurance Co. The learned Counsel for the Appellant relies on the judgment reported in Baldev Raj v. Dharmo Rani (1988) 94 P. L. R. 389, wherein the Insurance Company has been directed to meet with the liability qua the claim of the Respondents awarded in their favour during the pendency of the appeal. The said judgment squarely covers the facts of this appeal as well. It is not disputed in this appeal that there was a third-party insurance and that the claimant is the third-party I am in full agreement with the judgment cited Therefore, I direct that by way of interim arrangement, the New India Insurance Co. will pay the amount awarded by the Tribunal to the claimant, so that the claimant may not suffer any longer as the accident in the instant case had taken place as back as September 4, 1986 and till day nothing has been paid to him towards the compensation. The execution of the award against the owner shall stand stayed till the decision of the appeal. However, the Appellant shall furnish security to the satisfaction of the executing court within one month from today to the effect that in case the appeal fails and the Insurance Co. is not found liable for payment of the compensation, he shall reimburse the amount to be paid by the Insurance Co. with interest at the rate of 12 per cent from the date of its receipt by the claimants. The undertaking to this effect shall be filed by the Appellant within a month from today and the Insurance Co. shall deposit the amount of compensation with the executing Court within two months from today. In case the owners-Appellants fails to comply with the above directions within one month the stay order stand vacated. The executing court will accept the security after notice to the Insurance Co. The Civil Miscellaneous application stands disposed of accordingly.