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  • Section 5, Subsection 2 of the 1983 Income Tax Act
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  • Section 5, Subsection 2 of the 1983 Income Tax Act

    Mehta Madan Lal v. National Insurance Company Limited And Others

    Order

    It is obvious that the order made by the High Court apportioning the compensation of Rs 42,000 awarded to Respondent 2 between 1st respondent Insurance Company with whom the vehicle was insured and the appellant owner of the vehicle is erroneous because the liability for payment of compensation in case of a motor accident is the joint and several liability of the Insurance Company and the owner of the vehicle the liability of the Insurance Company being limited to Rs 50,000 and this liability cannot be apportioned between the Insurance Company and the owner of the vehicle. We, therefore, allow the appeal and set aside the order of the High Court only insofar as it seeks to apportion the liability for payment of compensation of Rs 42,000 between the appellant and the 1st respondent and direct that the 1st respondent as also the appellant shall be jointly and severally liable to pay the amount of compensation of Rs 42,000 awarded by the Tribunal and confirmed by the High Court. The appeal will stand disposed of accordingly.

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    Mehta Madan Lal v. National Insurance Company Limited And Others
    (Jan 7, 1983)