IN THE SUPREME COURT OF INDIA

CIVIL  APPELLATE JURISDICTION

CIVIL   APPEAL NO. 6528  OF 2008 (Arising out of S.L.P. (C) No.10592/2006)

   National Insurance Co. Ltd. ...Appellant

Versus

   Mayawati & Ors.            ...Respondents           

O  R  D  E  R

Leave granted.

Having heard learned counsel for the parties, we are of the opinion

that the Tribunal having found that the driver of the vehicle in question did not possess

an effective  and valid  licence and,  therefore,  while  directing the appellant  to pay the

amount to the claimants on the premise that they were third parties and recover the same

from the  owner  of  the  vehicle,  the  High  Court  while  entertaining  the  appeal  of  the

appellant could not have set aside  that portion of the order. The impugned judgment,

therefore, cannot be sustained.

    It  is  stated at the  Bar that a  part  of  the  awarded amount has been

deposited before this Court which has been invested in a short term Fixed Deposit and a

part thereof has been deposited before the M.A.C.T., Gonda apart from an  amount of

Rs.25,000/- deposited before the High Court by way of statutory deposit.

The claimant-respondents will be  entitled to withdraw the aforementioned

amount from this Court,tribunal as also the High Court.

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However, it will be open to the Insurance Company to recover the amount

deposited by it from the owner of the vehicle.

With the aforementioned observation and directions, the appeal is disposed

of.

......................J.       [S.B. SINHA]

.....................J                                       [ CYRIAC JOSEPH ]

New Delhi, October 24, 2008.

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