Colour Image segmentation is one of the prime requisites for computer vision and analysis. Much work has been reported in literature regarding colour image segmentation under HSI colour space and Gaussian mixture model (GMM). Since the Hue and Saturation values of the pixel in the image are non-negative. And may not be meso-kurtic, it is needed left truncate the Gaussian variate and is used to represent these two features of the colour image. The effect of truncation can not be ignored in developing the model based colour image segmentation. Hence in this paper a left truncated bivariate Gaussian mixture model is utilized to segment the colour image. The correlation between Hue and Saturation plays a predominant role in segmenting the colour images which is observed through experimental results. The expectation maximization (EM) algorithm is used for estimating model parameters. The number of image segments can be initialization of the model parameters are done with K-means algorithm. The performance of the proposed algorithm is studied by calculating the segmentation performance techniques like probabilistic rand index (PRI), global consistency error (GCE) and variation of information (VOI). The utility of the estimated joint probability density function of feature vector of the image is demonstrated through image retrievals. The image quality measures obtained for six images taken from Berkeley image dataset reveals that the proposed algorithm outperforms the existing algorithms in image segmentation and retrievals.