SUPREME COURT OF INDIA

Before:- B.N. Kirpal and S. Rajendra Babu, JJ.

Civil Appeal No. 3013 of 1999, Arising out of SLP (C) No. 9 of 1999. D/d. 10.5.1999.

United India Insurance Co. Ltd. - Appellant

Versus

Kanwal Nain Sachdeva and others - Respondents

Civil Procedure Code, 1908, Section 96 - First appeal - Duty of Court - The High Court ought to have discussed the merits of the contentions raised by the Insurance Company when it was dealing with the first appeal against the order of the Tribunal - The appeal is allowed and the impugned order of High Court is set aside - Motor Vehicles - Overloaded bus - Insurer's liability.

[Para 3]

ORDER

B.N. Kirpal, J. - Special leave granted.

2. The appellant herein had filed an appeal against the judgment of the Motor Accident Claims Tribunal disputing its liability to pay the sum awarded. The main contention of the appellant herein was that the licensed capacity of the bus which was insured and which met with the accident was only to have 22 passengers but in fact it was carrying nearly 48 passengers and, therefore, the Insurance Company was absolved of its liability.

3. The High Court dismissed the appeal by a cryptic order stating that no case had been made out for interfering in the well-reasoned award of the Motor Accident Claims Tribunal. In our opinion, the High Court ought to have discussed the merits of the contentions raised by the Insurance Company especially when it was dealing with the first appeal against the order of the Tribunal.

4. We accordingly allow this appeal, set aside the impugned judgment of the High Court and restore FAO No. 1646 of 1998 to the file of the High Court.

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