Insurance companies cannot evade liability solely based on permit violations; they must demonstrate specific breaches of policy conditions according to the Motor Vehicles Act.

JUDGMENT :

ASHUTOSH KUMAR, J.

1. As the present miscellaneous appeals have been filed against the common judgment and award dated 24.06.2017 passed by the learned Motor Accident Claim Tribunal, Bundi (hereinafter referred to as learned 'Tribunal’), the same are being heard and decided by the instant common judgment.

2. The instant appeals have been preferred by the appellants under Section 173 of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘Act of 1988’), challenging the impugned judgment and award dated 22.07.2008 passed by learned Tribunal whereby, the claim petitions filed by the claimants were partly allowed. Aggrieved of the judgment and award dated 22.07.2008, appeals were filed before this Court and vide common order dated 23.05.2011, the Coordinate Bench of this Court set aside the findings of the learned tribunal and remanded back the claim petitions to be decided afresh by the learned Tribunal.

3. Learned Tribunal vide common judgment and award dated 24.06.2017 decided the claim petitions afresh in terms of compensation awarded in favour of the claimants. Hence, the present appeals were filed. This is the second round of litigation against the earlier award dated 22.07.2008.

4. The following appeals have been filed by the claimants- appellants challenging the impugned judgement and award dated 24.06.2017 on the ground of enhancement of the compensation, which will be decided later in this judgment:-

TOTAL 17 APPEALS : S.B. C.M.A. Nos.95/2018, 115/2018, 116/2018, 118/2018, 131/2018, 135/2018, 154/2018, 155/2018, 156/2018, 157/2018, 180/2018, 181/2018, 182/2018, 183/2018, 191/2018, 210/2018 & 340/2018.

5. The following appeals have been filed by the appellant- Insurance Company challenging the impugned judgement and award dated 24.06.2017:-

Total 24 Appeals: S.B. C.M.A. No.5344/2017, 5259/2017, 5260/2017, 5261/2017, 5262/2017, 5263/2017, 5264/2017, 5266/2017, 5267/2017, 5280/2017, 5281/2017, 5282/2017, 5283/2017, 5284/2017, 5285/2017, 5286/2017, 5287/2017, 5288/2017, 5289/2017, 5334/2017, 5335/2017, 5336/2017, 5337/2017 & 5338/2017.

6. The appellant-Insurance Company has assailed the impugned judgement and award dated 24.06.2017, primarily on four grounds, that:-

1. the offending bus was being plied on a route for which it did not possess a valid permit;

2. the number of passengers travelling in the bus exceeded its sanctioned seating capacity; and

3. the driver was not holding a valid driving licence to drive the offending vehicle.

4. the learned Tribunal passed the impugned award and judgement while considering higher future prospects for claimants.

7. The first contention raised by learned counsel for the appellant-Insurance Company is that the offending bus was being operated on a route not covered by the permit, therefore, the appellant-Insurance Company is not liable to indemnify the insured.

8. Whereas, learned counsel for the claimants-appellants submits that the statutory defence circumscribed by Section 149(2) of the Act of 1988 does not confer a general right upon the insurer to avoid liability on every violation of the permit. The condition contemplated under the aforesaid provision is breach of a specified condition of the insu