important Point
Where the vehicle was driven by a person not holding valid licence, the insurance company would not be liable.

judgment

S.B. Sinha, J. —

1.Leave granted.

2.Jagiru was a tonga driver. While, he was driving his tonga on 10.2.1985, he met with an accident, as it collided with a tractor bearing Registration No. HYC 173. In the said accident, he received injuries and ultimately expired on 15.2.1985. At the time of his death, he was aged 40 years.

An application for payment of compensation by the appellants was filed in terms of Section 110-A of Motor Vehicles Act, 1939 (for short “the Act”). Respondent Insurance Company inter alia raised a contention therein that the driver of the said tractor did not hold a valid and effective license.

3.Before the Motor Vehicle Accident Claims Tribunal (The Tribunal), the driver of the said Tractor, Sushil Kumar was examined. He categorically stated that he did not know how to drive a tractor and he never even tried to learn driving of the tractor. He admitted that he had not been possessing any valid driving license to drive a tractor. It was accepted by him that he had even never applied therefor. He also, in answer to a question put to him in cross-examination, admitted that he did not hold a driving license.

The learned Tribunal answered the relevant issue in the following terms ;

“15. It is admitted by respondent No. 1 that he was not holding any driving licence to drive the tractor at the time of alleged accident and in fact he never possessed any driving licence. Since the respondent No. 1 was not holding any driving licence to drive the tractor, so, in view of the conditions contained in the copy of policy Ex. R1, the respondent No. 3 is not liable to pay any compensation. Accordingly, this issue is decided in favour of the respondent No. 3 against the petitioners.”

4.In that view of the matter, the application for grant of compensation was dismissed. An appeal preferred thereagainst by the appellants has also been dismissed by the High Court. The High Court, however, was of the opinion that the finding of the Tribunal that no accident took place due to rash and negligent driving of Sushil Kumar, was not correct holding that the appellants were entitled to compensation of Rs. 63,000/- from the respondent Nos. 1 and 2.

5.Appellants are, thus, before us.

Nobody has appeared on behalf of the appellants.

6.The question, as regards the purport and object for which the Act had been enacted and as also the statutory obligations on the part of the owner of the vehicle to get the same compulsorily insured came up for consideration in a large number of cases.

This Court, time and again made a distinction between a case where third party is involved vis-à-vis where the owner of the vehicle was involved in the accident. The matter relating to grant of license is dealt with in the Act. There are provisions in terms whereof despite expiry of the period of license, the same can be renewed. There are also provisions providing for grant of a fresh license. In certain situation, the authorities are also entitled to refuse to renew the license.

7.Although, in terms of a contract of insurance, which is in the realm of private law domain having regard to the object for which Section 147 and 149 of the Act had been enacted, the social justice doctrine as envisaged in the preamble of the Constitution of India has been given due importance. The Act, however, itself provides for the cases where the insurance Company can avoid its liability. Avoidance of such liability would largely depend upon violation of the conditions of contract of insurance. Where the breach of conditions of contract is ex-facie apparent from the records, the Court will not fasten the liability on the Insurance Company. In certain situations, however, the Court while fastening the liability on the owner of the vehicle may direct the Insurance Company to pay to the claimants the awarded amount with liberty to it to recover the same from the owner.

8.The concurrent finding of fact herein is that Sushil Kumar never held a license. The owner of the vehicl