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2025 Supreme(HP) 1809

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ajay Mohan Goel, J.
Sardar Suriender Singh - Petitioner
Versus
National Insurance Company Limited and another - Respondents
CMPMO No.150 of 2018
Decided On 11-12-2025

Advocates Appeared:
For the Petitioner:Mr. Ashwani Pathak, Senior Advocate, with M/s Virender S. Rathore and Dev Raj, Advocates.
For the Respondent:Mr. Deepak Bhasin, Senior Advocate, with M/s Sambhav Bhasin and Aryan, Advocates

Vehicle owner held jointly liable with driver for insurer's 50% recovery due to fake driving licence, despite owner's due diligence, as tribunal award targeted all respondents.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Fake driving licence - Tribunal awards compensation payable entirely by insurer to claimant, grants insurer liberty to recover 50% of amount paid due to driver operating vehicle with fake licence - Owner exercised due diligence in verifying licence but executing court holds owner and driver jointly and severally liable for recovery - Challenge by owner dismissed as tribunal allowed claim against respondents including owner and recovery fastened accordingly. (Paras 6, 20)

(B) Insurance liability - Fake licence breaches policy but insurer must indemnify owner if due diligence exercised by owner - Such breach does not limit recovery rights against owner, who remains liable towards insurer post-indemnification. (Paras 17, 18, 20)

Facts of the case:
Claim petition arose from accident where vehicle driven rashly and negligently caused injuries; driver held fake licence despite owner's verification from authority; tribunal found negligence, invalid licence but no policy violation; awarded compensation with insurer to pay full but recover 50%; executing court allowed recovery from owner and driver jointly; owner petitioned against this.

Findings of Court:
Executing court's order holding owner jointly liable correct; no infirmity found.

Issues: Whether recovery liberty limited to driver only given owner's due diligence, or extends jointly to owner.

Ratio Decidendi: Fake licence issue determines insurer's duty to indemnify owner but claimant compensated irrespective; tribunal's award against respondents includes owner; recovery logically from owner as principal employing driver, not solely driver.

Result: Petition dismissed.

Table of Content
1. tribunal awards compensation payable by insurer with 50% recovery for fake license. (Para 2 , 3 , 4 , 5 , 6 , 7)
2. petitioner claims recovery only from driver; respondent asserts joint owner-driver liability. (Para 8 , 9 , 10 , 11 , 12)
3. claimants compensated by owner or insurer irrespective of fake driving license. (Para 13 , 14 , 15 , 16 , 17)
4. owner due diligence limits insurer liability but enables recovery from owner. (Para 18 , 19 , 20)
5. cited case inapplicable; executing order upheld, petition dismissed. (Para 21 , 22 , 23 , 24)

JUDGMENT :

Ajay Mohan Goel, J.

By way of this petition, the petitioner has challenged the order passed by the learned Executing Court, in terms whereof, in the execution preferred by the Insurance Company, the Executing Court has ordered as under:-

“As per para No.29 the order of Tribunal, the insurance company has been liberty to recover 50% of the amount paid to the petitioner from the respondents and the reason for this recovery of 50% is given by the Tribunal to be a fake driving licence of respondent No.1 Surinder Singh. Surinder Singh was driving the vehicle of respondent No.1 and shared the relationship of master and servant. As Surinder was acting on behalf of the owner by driving the vehicle of the owner, but it was bound in duty of owner to have checked the driving licence before keeping him as driver on the truck. In the view of the circumstances, both driver and owner are jointly and severally are liable to make this 50% of the total amount to the petitioner. Accordingly, the objection is disposed of. Let warrant of attachment be issued in favour of respondent No.1 on filing particulars within a week and report be called on or before 5.1.2018.

2. Brief facts necessary for the adjudication of the present petition are that a claim petition was filed under Section 166 of the Motor Vehicles Act, 1988 (hereinafter referred to as ‘the Act’) by claimant Mansukh against the three respondents. These three respondents were Surinder Singh, the driver of the vehicle, Sardar Surinder Singh, the present petitioner, who was the owner of the vehicle and National Insurance Company. The facts, which led to the filing of the claim petition were that according to the claimant on the fateful day i.e., on 24.05.2005, when the claimant was going to Shahpur and when he reached near Hanuman Mandir in the main Shahpur Bazar, he was hit by a vehicle bearing registration number HP-38-A-8959, which was being driven by Surinder Singh in high speed and in a rash and negligent manner, as a result whereof, the claimant suffered injuries.

3. To cut the story short, on account of this incident, compensation to the tune of Rs.6 lac was claimed by the claimant.

4. On the basis of the pleadings of the parties before the learned Tribunal, the following four issues were framed:-

1. “Whether the respondent No.1 was driving the offending vehicle HP-38-A-8959 in a rash and negligent manner on the road on 24.05.2005 at Shahpur and had struck it against the petitioner thereby causing grievous injuries to him? OPP.

2. If issue No.1 is proved in affirmative, to what amount of compensation the petitioner is entitled to and from whom? OPP.

3. Whether respondent No.1 was not holding a valid and effective driving licence to drive the offending vehicle as alleged? OPR3

4. Whether respondents No.1 and 2 were plying the offending vehicle in violation of the terms and conditions of the insurance policy as alleged? OPR3.”

5. On the strength of the evidence, which was led by the parties in support of their respective contentions, the issues were decided as under:-

Issue NumberStatus
Issue No.1Yes
Issue No.2Yes
Issue No.3Yes
Issue No.4No

6. The claim petition was decided by the learned Tribunal, in the following terms:-

“In view of my findings on issues above, the petition succeeds and is allowed with costs against the respondents. However as the vehicle was insured the respondent no.3, so it will indemnify the entire compensation amount

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