IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
RADHAKISHAN AGRAWAL, J.
Ali Raza S/o Late Abdul Ajeej – Appellant
Versus
Vimla Bai W/o Balwant Singh – Respondent
M.A.C. Nos. 268, 269 of 2016
Decided On : 12-06-2024
Motor Vehicles Act - Compensation - Sections 166, 137, 138 - The judgment discusses the liability of the owner/driver of the offending vehicle and the duty of the Insurance Company to prove negligence. The court considered the evidence of the driving license and the failure to provide proper opportunity for examination and cross-examination of witnesses. The court referred to the Indian Evidence Act and the case of Lal Chand vs. Oriental Insurance Co. Ltd. (2006) 7 SCC 318 to establish the legal framework for determining liability and breach of policy conditions.
Fact of the Case:
The case involved an accident where two individuals died, and separate claim petitions were filed under Section 166 of the Motor Vehicles Act for compensation. The Tribunal awarded compensation, holding the owner/driver of the offending vehicle liable, which was challenged in the appeals.
Finding of the Court:
The court found that the Tribunal's decision was based on insufficient evidence and failure to provide proper opportunity for examination and cross-examination of witnesses. It held that the driver of the offending vehicle possessed a valid and effective driving license at the time of the accident, and the Insurance Company failed to prove the owner's negligence, thereby setting aside the liability imposed on the owner/driver and holding the Insurance Company liable to indemnify the compensation to the claimants.
Issues: The issues revolved around the validity of the driving license, breach of policy conditions, and the duty of the Insurance Company to prove negligence of the owner/driver.
Ratio Decidendi: The court relied on the Indian Evidence Act, specifically Sections 137 and 138, to highlight the importance of providing proper opportunity for examination and cross-examination of witnesses. It also referenced the case of Lal Chand vs. Oriental Insurance Co. Ltd. to establish the legal principle that the Insurance Company must prove the negligence of the owner to avoid liability.
Final Decision: Both appeals filed by the owner of the offending vehicle were allowed, exonerating the owner from satisfying the compensation as awarded by the Tribunal, and the Insurance Company was held liable to indemnify the compensation to the claimants.
JUDGMENT :
RADHAKISHAN AGRAWAL, J.
1. As both these appeals filed by the owner arising out of the same accident, therefore, they are heard together and are being disposed of by this common judgment.
2. Brief facts of the case are that on 07.09.2013, deceased persons namely Yaduvansh Singh and Sev Kumar went to Ambikapur, P.G. college to attend function and after attending function, they were returning to their village-Phulchuhi on bike and on way near village Sundarpur, the offending vehicle bus (transport vehicle) bearing registration CG-13-Q-0214 being driven by its driver/non-applicant No. 1 Birju Ram in a rash and negligent manner, dashed the deceased persons, as a result of which, they died on the spot on account of injuries received by them. At the time of accident, the offending vehicle was owned by non-applicant No. 2 (appellant herein) and insured with non-applicant No. 3/the New India Insurance Company Limited.
3. On account of death of deceased persons-Yaduvansh and Shiv Kumar separate claim petitions have been filed by the legal representatives/claimants under Section 166 of the Motor Vehicles Act claiming compensation of Rs. 31,62,000/- (in MACT No. 120/2013) and Rs. 33,38,000/- (in MACT No. 121/2013) under various heads. The Tribunal, considering the evidence led by the parties, awarded a compensation of Rs. 10,77,000/- in MACT No. 120/2013 and Rs. 10,23,000/- in MACT No. 121/2013 with interest @ 7% per annum from the date of application till realization while fastening the liability on the owner/driver of the offending vehicle with a further direction to the Insurance Company to pay the compensation amount to the claimants first and then recover the same from the owner/driver of the offending vehicle.
4. Being aggrieved by the impugned award dated 30.11.2015, non-applicant No. 2/owner of the offending vehicle has filed these appeals challenging the legality and validity of the impugned award.
5. Learned counsel for the appellant/owner submits that the impugned award passed by the learned Claims Tribunal fastening liability upon the owner/driver of the offending vehicle is perverse, illegal & erroneous. He further submits that as per the statement of NAW-1 Ali Raza/owner of the offending vehicle, non-applicant No. 1-Birju Ram/driver of the offending vehicle was having valid and effective driving licence to drive the offending vehicle and his licence was valid upto 09.03.2015 for driving transport vehicle along with other class of vehicle. He also submits that the finding of Claims Tribunal is merely based on the report of the Commissioner in which Commissioner has recorded the evidence of Rajesh Kumar Bhargav, Staff of RTO, Raipur, without providing any opportunity of hearing to the parties and as per the statement of evidence of Rajesh Kumar Bhargav, Staff of RTO, Raipur, all the entries are computer generated and further according to his statement, driving licence of non-applicant No. 1 Birju was issued on 17.05.1988. The statement of Rajesh Kumar Bhargav further reveals that the record of the same was not available with the office of RTO, Raipur. Therefore, the report of the Commissioner is not reliable. It was next submitted by him that the report of the Commissioner is also not reliable on the ground that on 11.09.2015, when the matter was fixed for examination/cross-examination of witness Rajesh Kumar Bhargav, the Commissioner has, without issuing any notice and further without informing to the parties or their Advocates, declared ex parte on 11.09.2015. The Commissioner report indicates that notice has been issued to the respective parties to appear before the office of RTO, Raipur, however, in the record of the Commissioner as well as that of record of the Claims Tribunal, no such notice is available. It is further contended that it is the primary duty of the Insurance Company to prove the guilty of negligence of owner, but the Insurance Company has failed to discharge its duty. The learned Claims Tribunal has,
The main legal point established in the judgment is the duty of the Insurance Company to prove the negligence of the owner/driver to avoid liability, as per the provisions of the Motor Vehicles Act a....
The insurance company is exonerated from liability for compensation as the driver lacked a valid driving license, establishing a breach of policy conditions.
The insurer must prove that the insured's breach of policy conditions is willful to avoid liability, even if the driver holds a fake license.
The burden of proof regarding a driver's valid licence lies with the vehicle's owner, absolving the Insurance Company from liability if not established.
Insurance companies cannot evade liability for third-party claims solely due to a driver’s lack of valid license; they must prove the owner's negligence to avoid statutory obligations.
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