AIR 2008 DELHI 90
PRADEEP NANDRAJOG, J.
Sh. Jagdish Prasad Paliwal
Versus
National Insurance Co. Ltd.
F.A.O. No. 140 of 2006
Decided On:- 14 -11 -2007.
negligence - insurance liability - The appellant, owner of a vehicle involved in a road accident, was held liable to reimburse interest to the insurance company due to his negligence in defending the proceedings and failing to produce the driver's valid license, resulting in unnecessary trial and delay. The court dismissed the appeal.
Fact of the Case:
The appellant, owner of the vehicle involved in a road accident, was required to pay interest to the insurance company on the principal sum paid to the claimants. The appellant was negligent in defending the proceedings and failed to produce the driver's valid license, resulting in unnecessary trial and delay.
Finding of the Court:
The court found that the appellant was grossly negligent in defending the proceedings, bordering on culpability, and dismissed the appeal.
Issues: Negligence in defending the proceedings, liability to reimburse interest to the insurance company.
Ratio Decidendi: The appellant's negligence in failing to produce the driver's valid license and participate in the trial resulted in unnecessary trial and delay, leading to the insurance company being saddled with the liability to pay interest to the claimants.
Final Decision: The appeal was dismissed.
2. Attender, died an untimely death at a road accident. His mother, wife and minor sons claimed compensation under the Motor Vehicles Act, 1988. Appellant was the owner of the vehicle in question. It was insured with National Insurance Company. The appellant, the driver of the vehicle and the insurance company were impleaded as respondents No. 1, 2 and 3 in the claim petition.
3. Appellant was served in the claim petition. He engaged a lawyer. He claims that his lawyer cheated him by pocketing the fee and not appearing before the Tribunal as also not informing the appellant as to what was happening before the Tribunal.
4. The insurance company took a defence that it was entitled to avoid the policy for the reason it was a term of the policy that the vehicle which was the subject-matter of the insurance would not be entrusted for being driven to a person not possessing a valid driving licence. It was alleged that the driver did not possess a driving licence which entitled him to drive the vehicle which was the subject-matter of the insurance.
5. The insurance company successfully proved that the licence which was seized by the police after the accident, copy whereof was made available to the insurance company, did not permit the driver to drive a heavy duty vehicle. It permitted him to drive a light motor vehicle.
6. During trial the insurance company served notice on the appellant under Order 12, Rule 8, C. P. C. to produce the policy of insurance and the driving licence of the driver if appellant had one to produce. In spite of service of said notice upon him, appellant did not bother to attend the hearing before the Tribunal.
7. The result was that the Tribunal held that the insurance company was entitled to avoid liability under the policy of insurance, but in harmony with the law laid down by the Supreme Court in the decision reported as 2004 (3) SCC 297 : AIR 2004 SC 1531 National Insurance Co. Ltd. v. Swaran Singh wherein it was held that the insurance company was liable to satisfy the award in favour of the claimants and recover the same from the assured, the Tribunal held that on satisfying the award, the insurance company could recover the amount from the appellant.
8. The insurance company satisfied the award and proceeded to recover the sum paid over to the claimants by seeking attachment of the property of the appellant. The appellant rushed to the Court and filed an application under Order 9, Rule 13, C.P.C. praying that the ex parte award be set aside. He produced what according to the appellant was the driving licence shown to him by the driver when he had engaged the services of the driver. He stated that his lawyer had cheated him.
9. The Tribunal caused an inquiry to be made and in relation to the record of the licensing authority found out that the driver of the offending vehicle possessed a valid driving licence.
10. As a result of this evidence which was brought on record, learned Tribunal absolved the appellant from the liability to reimburse the principal sum awarded and paid by the insurance company to the claimants but opined that the appellant was liable to reimburse the interest to the insurance company for the reason had he dutifully participated at the trial and had he produced the driving licence in question, unnecessary trial on the issue of the driver possessing a valid driving licence would have been avoided. That as a result of delay, insurance company was saddled with the liability to pay interest to the claimants.
11. I concur with the view taken by the Tribunal for the reason claim petition was filed on 3-2-1999. Appellant was served with a notice in the claim petition for 30-8-1999. The award was published on 5-5-2005. Appellant did not ever bothered to
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