IMPORTANT POINT
If the owner was aware of the fact that the licence was fake and still permitted the driver to drive the vehicle, then the insurer would stand absolved. However, the mere fact that the driving licence is fake, per se, would not absolve the insurer.

JUDGMENT

A.M. Khanwilkar, J.

1. The singular question involved in this appeal against the judgment and order dated 28th November, 2016 passed by the High Court of Judicature at Allahabad in First Appeal From Order No.3290 of 2016, is whether the Motor Accident Claims Tribunal, Firozabad, was right in holding that the insurer was not liable as the driver had a fake licence.

2. Shorn of unnecessary details, the respondent Nos.1 to 5 filed a motor accident claim before the Motor Accident Claims Tribunal, Firozabad, bearing M.A.C.P. No.169 of 2012, consequent to the death of Sanoj Kumar on account of motor accident which occurred on 10th May, 2012 at 6.30 A.M., when he was going for his morning walk towards Mustafabad Chauraha. At that time, the driver of Bolero loader bearing registration No.UP-71/0084 while driving the vehicle in a high speed and in rash and negligent manner, hit the deceased from behind. The Tribunal partly allowed the claim petition and awarded compensation amount of Rs.6,27,000/-, but absolved the Oriental Insurance Company Ltd. (for short, “the insurer”) on the finding that the offending vehicle was driven by one Shivgyani (respondent No.6) who did not have a valid driving licence. The Tribunal, however, directed the insurer to pay the compensation amount as determined in terms of the award dated 24th August, 2016, with liberty to recover the same from the vehicle owner (appellant herein) and the driver (respondent No.6) jointly and severally.

3. The appellant, being the vehicle owner, alone filed an appeal before the High Court of Judicature at Allahabad which was dismissed on the finding that the counsel for the appellant did not dispute that the driving licence was found to be fake and no evidence was adduced before the Court to show that the driving licence was genuine. This concurrent view is the subject matter of challenge in the present appeal.

4. It is contended by the appellant that even if the finding of the Tribunal, that the driving licence relied upon by the owner of the vehicle and driver was fake, is maintained as it is, even then the Tribunal could not have absolved the insurer and made the owner of the vehicle liable, in the absence of a clear finding that the owner of the vehicle was aware about the factum of fake licence and despite the same, he made no attempt to take corrective measures, including to verify the genuineness thereof. In absence of such a finding, the insurer cannot be straightaway absolved. In support of this proposition, reliance was placed on PEPSU Road Transport Corporation Vs. National Insurance Company, (2013) 10 SCC 217 and Premkumari and Ors. Vs. Prahlad Dev and Ors., (2008) 3 SCC 193.

5. The counsel for the insurer submits that the appellant having admitted the fact that the driving licence was fake and failing to produce any other evidence to prove otherwise, cannot be heard to make any grievance about the finding recorded by the Tribunal and affirmed by the High Court absolving the insurer from the liability to pay the compensation amount.

6. We have heard Mr. S.R. Singh, learned senior counsel appearing for the appellant and Mr. Abhishek Gola, learned counsel appearing for the respondents.

7. We have perused the entire pleadings and the evidence on record as also the judgments of the Tribunal and the High Court. It is noticed that the insurer had taken a specific plea in the written statement filed before the Tribunal, that the driving licence of the driver was not a valid licence. In the alternative, it was asserted that the owner of the vehicle must produce the driving licence so that it can be verified from the licencing authority. Additionally, the insurer placed on record an investigation report, verification report and photocopy of the driving licence to establish the fact that the driving licence relied upon by the owner and the driver was fake and not valid. For, it was authenticated that no such driving licence was issued by the authority concerned.

8.