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2. The car was owned by M/s Pest Control (India) Pvt. Ltd., respondent No. 1 and was insured with New India Assur- ance Company Limited, respondent No.2. The motor lorry was owned by one Madhav Bolar respondent No.3 and was insured by Oriental Fire and General Insurance Company Limited, respondent No.4. According to the appellant, the driver of the car in which the appellant was sitting as well as the driver of the lorry which was coming from the opposite side, both were being driven in a rash and negligent manner which resulted into a head on collision. On 11. 10. 1980 the ap- pellant gave notice to the Insurance Company and other parties who were liable to pay compensation and called upon them to pay compensation of Rs.4,00,000/-. Since there was no response, on 13.11.1980 the appellant filed the claim petition under Section 110-A of the Motor Vehicles Act, 1939 (hereinafter referred to as the 'Act'). Initially, the appellant made a claim for compensation amounting to Rs.4,00,000/-, but on 16.4.1984 he claimed Rs.35,00,000/- as the compensation from the respondents and claim petition was amended. The age of the appellant at the time of accident was 52 years.

3. The appellant was a practicing advocate before the accident. He was also a Judge of the City Civil Court for some time until he resigned in the year 1964. The appellant used to appear in the various courts including the High Court and the Supreme Court of India. Because of the accident, the appellant became disabled and he was unable to resume his practice.

4. The claim made on behalf of the appellant was resisted by the respondents to the said petition on different grounds. The owner of the lorry resisted his liability to pay any amount of compensation on the ground that although he was the owner of the said lorry but since it was insured with respondent No.4, the insurance company was liable to pay compensation, if any, to the appellant. M/s Pest Control (India) Pvt. Ltd., who were the owner of the car resisted the claim made on behalf of the appellant asserting that the driver of the said car was driving the car very cautiously and carefully and the accident took place entirely due to the negligence on the part of the driver of the motor lorry. In any case, according to the said respondent, the compensation claimed on behalf of the ap- pellant was excessive, imaginary and speculative in nature, which according to the said respondent was an attempt to make "a fortune out of misfortune". Respondent No.2, New India Assurance Co. Ltd., with whom the car in question was insured took a plea that their liability was limited to the requirements as per law and terms and conditions of the insurance policy issued by them in favour of Respondent No.

6. Against the Award aforesaid, two appeals were filed before the High Court, one on behalf of the appellant for enhancement of the compensation awarded by the Tribunal and the other on behalf of M/s Pest Control (India) Pvt. Ltd., respondent No. 1 and New India Assurance Co. Ltd., respondent No.2 questioning the validity and correctness of the award in question. The High Court by the impugned judg- ment modified the award of the Tribunal and reduced the compensation from Rs.26,25,992/- to Rs.8,57,352/-. The High Court has also reduced the rate of interest from 12% per annum to the rate of 6% per annum. The award against the insurer of the lorry-respondent No.4 was affirmed and direction was given to make payment with interest at the rate of 6% and the proportionate costs. It was further directed that if the respondents failed and neglected to pay the amount in full or part, such defaulted amount shall carry 12% interest per annum from the date of default till its realisation. On the aforesaid finding the appeal filed on behalf of the appellant was dismissed, whereas the appeal filed on behalf of Respondent Nos. 1 and 2 was allowed by the High Court in part.

19. The appeals of the appellant are allowed to the extent indicated above. No costs.

M/s Pest Control (India) Pvt.Ltd.& Anr.

v.

R.D. Hattangadi & Ors.

Special Leave Petition (C) No.4586 of 1989

20. This Special Leave petition has been filed on behalf of M/s Pest Control (India) Pvt. Ltd. and Anr. against the same judgment of the High Court. As the Civil Appeal Nos. 1799-1800 of 1989 have been allowed in part and the amount of compensation awarded to the victim by the High Court has been enhanced, this Special Leave Petition has to be dismissed and it is accordingly dismissed. No costs.