The insurance company is liable to pay compensation but can recover the amount from the owner of the vehicle due to the driver's invalid driving license.

JUDGMENT :

V.G. BISHT, J.

1. This first appeal is preferred by the New India Assurance Company Limited (original respondent) against the judgment and order dated 13th April 2018 passed in M.A.C.P. No. 62 of 2013 by the learned Member, M.A.C.P. Karad thereby directing the appellant and others to pay jointly and severally to the claimant a sum of Rs. 7,11,000/- towards compensation together with simple interest thereon at rate of 6% p.a. from the date of petition till realization of entire amount within two months from the passing of the judgment and order.

2. I have heard both the parties. The learned counsel for appellant has raised a very short issue. As far as the amount of award is concerned, it is not disputed. However, according to the learned counsel for appellant, the learned Tribunal ought to have considered that on the date of accident, the driver was not holding a valid driving license and in such circumstances, it ought to have ordered that the appellant is entitled to recover the amount of award from the owner of the vehicle of the offending truck, which was rejected by the learned Member.

3. I have also heard the learned counsel for the respondent/claimant who also admits the position of law and has no objection if it is so ordered by this Court.

4. On going through the record it is seen that respondent no. 6-owner of the offending truck though duly served through private notice i.e. through Registered AD/Speed Post (Flag B) but remained absent. It is also seen from the record that during the pendency of the present appeal, the driver of the said offending truck i.e. respondent no. 7 came to be deleted, in view of pursis (Exhibit 21) filed before the M.A.C.T.

5. Perused the impugned judgment and order.

6. Though learned trial Court noted that on the date of accident the driver of the offending vehicle was having no driving license, but made following observations at paragraph 21:

“21 However, from the above details of license it can be said that offending truck driver has a driving skill to drive the truck and it is difficult to say that he has lost his skill or forgotten expertise for driving the vehicle. The said driver has got renewed the license w.e.f. 27.3.2013 after it was expired on 12.2.2012. The accident took place hardly 11 days prior to 27.3.2013. Therefore, I am of the opinion that the opponent no. 3 cannot avoid its liability. Therefore, opponent nos. 1 and 3 are liable to pay compensation, jointly and severally.”

7. In Parminder Singh vs. New India Assurance Company Ltd. and Others, 2019 SAR (Civil) 795 the Hon'ble Apex Court has held as under:

“7. On the issue of liability to pay the compensation awarded, we affirm the view taken by the High Court that the Respondent-Insurance Company is absolved of the liability to bear the compensation, as evidence has been produced from the office of the Regional Transport Office to prove that the drivers of the two offending trucks were driving on the basis of invalid driving licenses. It is also relevant to note that the owners and drivers of the offending trucks have not appeared at any stage of the proceedings, including this Court.

7.1 This Court in Shamanna and Others vs. The Divisional Manager, Oriental Insurance Co. Ltd. and Others, (2018) 9 SCC 650 held that if the driver of the offending vehicle does not possess a valid driving license, the principle of ‘pay and recover’ can be ordered to direct the insurance company to the pay the victim and then recover the amount from the owner of the offending vehicle.

7.2 We deem it just and fair to direct the Respondent-Insurance Company to pay the enhanced amount of compensation as indicated in Para-6 above, to the Appellant within a period of 12 weeks from the date of this judgment. The Respondent-Insurance Company is directed to make out a Demand Draft in the name of the Appellant, which can be used for his care for the rest of his life. The Respondent-Insurance Company is entitled to recover the amount from the owners and