IN THE HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
J.P. Singh, J.
National Insurance Co. Ltd. - Appellant
Versus
Paras Ram & Ors. - Respondent
CIMA No. 180/2005, CMP No. 251/2005 And CIMA No. 153/2005, CMP No. 381/2006
Decided On : 30 June, 2009
Motor Vehicles Act - Compensation Awards - Section 173 - [MOTOR VEHICLES ACT, 1988, Section 178, Section 163A] - The court affirmed the awards of the Motor Accidents Claims Tribunal, Rajouri, and dismissed the appeals by the National Insurance Company Ltd. The court held that the Insurance Company failed to prove that the driver did not have a valid license or that the vehicle was overloaded, and thus, the company was liable to indemnify the owner. The court also found the compensation awarded to be in line with the provisions of the Motor Vehicles Act and the precedents set by the Supreme Court of India.
Fact of the Case:
The appeals were filed against the awards of the Motor Accidents Claims Tribunal, Rajouri, which had awarded compensation for the death of two individuals in a motor vehicular accident. The Insurance Company contested its liability to indemnify the owner of the vehicle, citing the driver's lack of a valid license and overloading of the vehicle. The quantum of compensation was also objected to by the Insurance Company.
Finding of the Court:
The court rejected the Insurance Company's defense and affirmed the awards of the Tribunal, holding the company liable to indemnify the owner. The court found the compensation awarded to be in line with the provisions of the Motor Vehicles Act and the precedents set by the Supreme Court of India.
Issues: The issues included the liability of the Insurance Company to indemnify the owner, the quantum of compensation awarded, and the validity of the driver's license and overloading of the vehicle.
Ratio Decidendi: The court held that the Insurance Company failed to prove its defense and was thus liable to indemnify the owner. The court also found the compensation awarded to be in line with the provisions of the Motor Vehicles Act and the precedents set by the Supreme Court of India.
Final Decision: The court dismissed the appeals and ordered the release of the deposited amount in favor of the claimants.
2. The Motor Accidents Claims Tribunal, after examining and appreciating the evidence which the claimants had produced to support their claims, allowed the Claim Petitions, as mentioned, at the threshold, rejecting appellant-Companys defence to indemnification, holding that it had failed to prove that the driver of Maruti Van was not holding valid driving license and the vehicle was overloaded at the time of the accident.
3. Appellants learned counsel, while making a feeble attempt to question the awards of the Tribunal on the ground that the appellant-Insurance Company was not liable to indemnify the owner who had allowed the vehicle in question to be driven against the terms and conditions of Insurance policy, strenuously urged that the quantum of compensation awarded by Tribunal to the claimants was excessive and against the law laid down by the Honble Supreme Court of India in this behalf. Reliance is placed by the learned counsel on Uttranchal Transport Corporation Ltd. Vs Vimla Devi and ors, reported as (2009) 4 SCC 377.
4. Supporting the awards, the claimants learned counsel submitted that the findings of the Tribunal on Issue no. 3 framed in this respect on appellant-Insurance Companys plea of avoiding indemnification, does not suffer from any error of law, because, in view of the failure of the Insurance Company to produce any evidence to support its plea that the owner of the vehicle had violated the terms and conditions of the Insurance Policy, there was no other course open for the Tribunal but to decide the Issue against the appellant-Company for lack of evidence in support of the issue onus of proof whereof lay on it.
5. Learned counsel justifies the quantum of compensation awarded by Tribunal to the claimants urging that the award is in terms of the provisions of Section 178 of the Motor Vehicles Act and in the absence of any evidence produced by the Insurance Company to rebut the evidence produced by the claimants, the quantum of compensation awarded by the Tribunal cannot be faulted, because it has been so assessed on the basis of the law settled by the Honble Supreme Court of India in this respect.
6. I have considered the submissions of learned counsel for the parties.
7. Appellants first plea against the findings of the Tribunal on Issue no. 3 needs to be noticed only for its rejection, in that, in the absence of any evidence by the appellant- Insurance-Company to prove that the driver of the vehicle in question did not have valid driving license at the time of the accident and that the vehicle had been dri
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