BAJAJ ALLIANZ GENERAL INSURANCE CO LTD Vs. INDIRA BAI

JUDGEMENT

(1.) THE following oral order of the court was passed by S. R. Nayak, C. J. In all these appeals, i. e. , M. A. Nos. 730 731, 722, 728, 723 and 729 of 2006 preferred by insurance company under section 173 of Motor Vehicles Act, 1988 (for short 'the Act'), the only question raised and argued is that though the Motor Accidents claims Tribunal has rightly held that the appellant insurance company is under no legal obligation to pay compensation to the claimants, it has directed the insurance company to pay compensation in the first instance and then to recover the same from the owner of the motor vehicle involved in the accident.

(2.) IN M. A. Nos. 731, 723 and 729 of 2006, the respondents-claimants have filed cross-objections seeking enhancement of compensation.

(3.) WE have heard learned counsel for the parties. Mr. Rajesh Pandey, the learned counsel appearing for the appellant insurance company placing strong reliance on the judgment of the High Court of Bombay in the case of New India Assurance Co. Ltd. v. Diwakar, 2007 ACJ 215 (Bombay), would contend that the M. A. C. T. having held rightly that the insurance company is under no legal obligation to pay compensation on the ground that there was breach of conditions of policy on the part of the owner of the motor vehicle involved in the accident, seriously erred in law in directing the insurance company to pay a compensation in the first instance to the claimants and then to recover the same from the owner of the motor vehicle.