High Court Of Delhi
NATIONAL INSURANCE CO.LTD - Appellant
Versus
KANTI DEVI - Respondent
C.A. : 3197 of 2005
Decided On : 05/09/2005
Insurance - Motor Vehicle Act - Section 166 - Section 149(2)(a)(ii) - Section 149(4) - Section 149(5) - Section 3 - Section 10 - Section 2 - [SUMMARY]
Fact of the Case:
The case involved a motor accident where the claimant sought compensation under Section 166 of the Motor Vehicles Act, 1988. The insurer challenged the award made by the Motor Accidents Claims Tribunal (M.A.C.T.) and the subsequent dismissal of the appeal by the High Court.
Finding of the Court:
The High Court dismissed the appeal, holding the insurer liable to pay compensation to the claimant based on the decision in United India Insurance Co. Ltd. v. Lehru, 2003 ACJ 611 (SC), which stated that the insurer cannot escape liability when given the right to recover compensation from the insured.
Issues: The main issue was the liability of the insurer to pay compensation to the claimant under the Motor Vehicles Act, 1988, based on the driver's possession of a valid driving license and the insurer's right to recover compensation from the insured.
Ratio Decidendi: The court referred to the scope and ambit of Section 149(2)(a)(ii), Section 149(4), and Section 149(5) of the Motor Vehicles Act, 1988, as well as Section 3, Section 10, and Section 2. It emphasized that the insurer's defense regarding the validity of the driver's license and the insured's duty to verify the license's genuineness must be considered by the Tribunal.
Final Decision: The matter was remitted to the M.A.C.T. for fresh consideration in light of the principles enunciated by the court in National Insurance Co. Ltd. v. Swaran Singh, 2004 ACJ 1 (SC), with a directive to dispose of the matter within six months.
( 1 ) LEAVE granted. National Insurance Co. Ltd. (hereinafter referred to as the insurer ) calls in question legality of the judgment rendered by a learned single Judge of HIGH COURT OF DELHI dismissing the appeal filed by it.
( 2 ) QUESTIONING the award made by the motor Accidents Claims Tribunal, Karkardooma courts, Delhi (in short the m. A. C. T. ), the appeal was filed before the High Court. By the aforesaid award the m. A. C. T. had held that the respondent No. 1 Kanti Devi (hereinafter referred to as the claimant ) was entitled to compensation of Rs. 2,24,800 together with 8 per cent interest from the date of filing of claim petition under section 166 of the motor Vehicles Act, 1988 (in short the act ) i. e. , 30. 11. 1998 till realisation of the award excluding certain periods (i. e. , from 30. 11. 1998 to 1. 8. 2000 and 10. 9. 2001 to 4. 2. 2002 ). The insurer was held liable to compensate the claimant.
( 3 ) BACKGROUND facts as projected by the claimant in the claim petition were that her son Pradeep Kumar lost his life on 4. 10. 1998 on account of vehicular accident involving Tata Tempo No. DL 1-B 8441 which was allegedly being driven rashly and negligently by Rohani Prasad, respondent no. 2 (hereinafter referred to as the driver ). The deceased was aged about 22 years at the time of the accident. The offending vehicle belonged to Devender kumar, the respondent No. 3 (hereinafter referred to as the insured ). Before the Tribunal the driver and owner did not appear.
( 4 ) STAND of the insurer before M. A. C. T. was that the driver did not possess a valid driving licence, as the driving licence authorised driving of light motor vehicle (private), while driver was driving a transport vehicle (Tata truck-407 ). M. A. C. T. held that there was nothing to show that the driving licence was fake and that plying of the vehicle involved amounted to breach of conditions of the insurance policy issued by the insurer. It was held that the insurer was to satisfy the award, with right of recovery from the insured. This part of observation of the M. A. C. T. which led to fastening of liability on the insurer was challenged before the High Court. By the impugned order the High Court dismissed the appeal holding that in view of the decision of this court in United India Insurance co. Ltd. v. Lehru, 2003 ACJ 611 (SC), the insurance company cannot escape its liability to pay compensation to the claimant when it has been given right to recover the compensation from the insured.
( 5 ) IN support of the appeal, learned counsel for the appellant submitted that the High Court s view is untenable in view of what has been said by a three-Judge bench decision of this court in National insurance Co. Ltd. v. Swaran Singh, 2004 acj 1 (SC ). There is no appearance on behalf of respondents in spite of service of notice.
( 6 ) IN Swaran Singh s case, 2004 ACJ 1 (SC), this court dealt with scope and ambit of section 149 (2) (a) (ii) vis-a-vis proviso appended to sub-section (4) and sub-section (5) thereof. While dealing with cases where the driver who has been granted licence for one type of vehicle at the relevant time was driving another type of vehicle. In para 82 it was observed as follows: "section 3 of the Act casts an obligation on a driver to hold an effective driving licence for the type of vehicle which he intends to drive. Section 10 of the Act enables Central Government to prescribe the forms of driving licences for various categories of vehicles mentioned in sub-section (2) of the said section. The various types of vehicles described for which a driver may obtain a licence for one or more of them are: (a) motor cycle without gear; (b) motor cycle with gear; (c) invalid carriage; (d) light motor vehicle; (e) transport vehicle; (f) road-roller; and (g) motor vehicle of other specified description. The definition clause in section 2 of the Act defines various categories of vehicles which are covered in broad types
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