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2025 Supreme(Gau) 633

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH 
DEVASHIS BARUAH, J.
National Insurance Co. Ltd. - Appellant
Versus
Manju Chetry W/o Late Pradip Kr. Bista (Chetry) - Respondent
MAC App. No. 151 of 2022
Decided On : 11-03-2025

Advocates:
Advocate Appeared:
For the Appellants : R.K. Bhatra, A. Biyani
For the Respondent: S. Deka

The Insurance Company is liable to pay compensation unless it proves the driver lacked a valid driving license, which was not substantiated in this case.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 and Section 168 - Appeal against judgment and award of Motor Accident Claims Tribunal - Award of Rs.34,07,000/- with interest @6% per annum upheld - Tribunal's finding of rash and negligent driving confirmed - Validity of driver's license questioned but not substantiated - Insurance Company directed to pay compensation. (Paras 3, 10, 12, 13)

(B) Liability of Insurance Company - Insurance Company cannot be held liable if the driver lacks a valid driving license, as it constitutes a violation of policy terms. (Paras 11, 13)

Facts of the case:
The appeal arises from a fatal accident involving Late Pradip Kumar Bista, who was struck by a vehicle while walking. The Tribunal awarded compensation to the claimants, which the Insurance Company contested on grounds of the driver's license validity. (Paras 5, 6, 10)

Findings of Court:
The Tribunal's award of Rs.34,07,000/- was justified based on the evidence presented, and the Insurance Company must satisfy the award despite questioning the driver's license validity. (Paras 10, 12)

Issues: The main issues included the determination of liability based on the driver's license validity and the adequacy of the compensation awarded. (Paras 8, 10)

Ratio Decidendi: The court emphasized that the Insurance Company is liable to pay the awarded compensation unless it can prove the driver lacked a valid license, which was not established in this case. (Paras 12, 13)

Result: Appeal disposed of; award upheld.

JUDGMENT :

1. Heard Mr. R.K. Bhatra, the learned counsel appearing on behalf of the appellant and Mr. S. Deka, the learned counsel appearing on behalf of the respondents.

2. It is seen from the records that the service upon the owner of the vehicle who is the respondent No.4 is duly complete. However, none has appeared on behalf of the respondent No.4. Taking into account the order which this Court proposes to pass, this Court dispenses with the service insofar as the respondent No.5 is concerned.

3. This is an appeal under Section 173 of the Motor Vehicles Act, 1988 challenging the judgment and award dated 21.08.2021 passed in MAC (Death) Case No.37/2015 passed by the learned Member, Motor Accident Claims Tribunal, Morigaon whereby an amount of Rs.34,07,000/- was awarded in favour of the claimants along with interest @ 6% per annum from the date of filing of the claim petition i.e. 18.08.2015 till actual payment by the appellant Insurance Company.

4. The learned counsel appearing on behalf of the appellant submitted that although various grounds of objection have been taken in the instant appeal but the appellant Insurance Company would limit its submission only to the ground of objection that in spite of making a specific pleading that the driver in question did not have a valid driving license, the learned Tribunal did not frame any issue in that respect and had mechanically saddled the entire liability upon the appellant Insurance Company. Taking into account the above ground of objection taken, this Court finds it relevant to take note of the brief facts which led to the filing of the instant appeal.

5. One Mr. Pradip Kumar Bista (Chetry) (since deceased) along with one Shri Samual Engti were travelling on foot towards Hameran side and when they reached Umdap Harlong Juve PWD Road, a vehicle bearing Registration No. AS-25-0358 (Tata Truck) coming from the back side and driven in a rash and negligent manner knocked down Late Pradip Kumar Bista and his friend from back side. As a result of the accident, Late Pradip Kumar Bista and his friend sustained serious injuries. Both the persons were admitted in Hamren Civil Hospital. After preliminary treatment, Late Pradip Kumar Bista was referred to the Guwahati Medical College Hospital and accordingly, he was admitted in the said Guwahati Medical College Hospital.

6. While undergoing treatment, Late Pradip Kumar Bista succumbed to his injuries on 24.03.2014. It is under such circumstances, the claim proceedings being MAC (Death) Case No.37/2015 was filed by the claimants who are the legal representatives of Late Pradip Kumar Bista. An FIR was filed before the Hamren Police Station and a case was registered being Hamren P.S. Case No.6/2015 under Sections 279/338/304(A) of the Indian Penal Code.

7. The claim proceedings upon being filed and registered, notices were issued upon the owner of the vehicle, the appellant Insurance Company as well as the driver of the vehicle in question. Neither the owner of the vehicle nor the driver of the vehicle participated in the said proceedings. However, the appellant Insurance Company appeared and filed written statement wherein they had denied the various statements made in the said claim proceedings. In the said written statement so filed by appellant Insurance Company, it was specifically pleaded that there was violation of the terms and conditions of the policy as the driver did not have a valid and effective driving license. It was also mentioned in the said written statement that the amount of compensation claimed by the claimants were highly exaggerated and without any basis.

8. On the basis of the said pleadings, as many as three issues were framed which are reproduced herein under:

“1. Whether the accident took place on 18.01.2014 at 6.00 A.M. at Umdap Harlong Juve due to rash and negligent driving on the part of driver of the vehicle bearing registration No.AS-25-0358?

2. Whether Lt. Pradip Kr. Bista died in the said accident that took place on

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