New India Assurance Co. Ltd vs Giribala Kalita & Ors

The Supreme Court addressed the liability of the insurance company in a motor accident case, emphasizing that under the Motor Vehicles Act, the insurance company is liable for the full compensation amount claimed by the claimants, rather than being limited to Rs.50,000 as argued. The Court found that the representation of the vehicle owner, Ramchandran, was questionable due to discrepancies in signatures, warranting further investigation into the legitimacy of the representation. The appeal was allowed, and the matter was remanded for a thorough inquiry into the proxy representation issue.