IN THE HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
Barin Ghosh,Sunil Hali, JJ.
Tashi Rigzin - Appellant
Versus
Stanzin Jigmed & Ors. - Respondent
CMP Nos. 37/2008
Decided On : 23 November, 2009
Motor Accidents Claims Tribunal - Motor Vehicles Act, 1988 - Section 149 - Summary of Acts and Sections: The court discussed the liability of the Insurance Company under Section 149 of the Motor Vehicles Act, 1988, and the defences available to the Insurance Company. It highlighted the provisions of Sub-sections (1), (2), and (5) of Section 149 and their implications on the liability of the owner and the Insurance Company. The court also emphasized the need for the Insurance Company to prove negligence and reasonable care in fulfilling the policy conditions regarding the use of the vehicle by a duly licensed driver.
Fact of the Case:
A passenger bus met with an accident, resulting in multiple claims before the Motor Accidents Claims Tribunal. The principal issues were whether the accident was due to rash and negligent driving and whether the claimants were entitled to compensation. The Tribunal decided in favor of the claimants, and the Insurance Company appealed the decision.
Finding of the Court:
The court found that the Insurance Company failed to prove the driver's negligence or the contribution of the driver's lack of a valid license to the accident. The court also highlighted the provisions of Section 149 of the Motor Vehicles Act, 1988, and set aside the judgment directing the Insurance Company to file a separate case for recovery of compensation from the owner.
Issues: The issues included the validity of the driver's license and whether the vehicle was being plied in violation of the insurance policy and route permit.
Ratio Decidendi: The court emphasized the need for the Insurance Company to prove negligence and reasonable care in fulfilling the policy conditions regarding the use of the vehicle by a duly licensed driver. It also highlighted the limitations on the defences available to the Insurance Company under Section 149 of the Motor Vehicles Act, 1988.
Final Decision: The court allowed all the appeals, set aside the judgment and order under appeal, and directed the claimants to withdraw the compensation awarded from the Tribunal if deposited by the Insurance Company. The claimants were also permitted to take further legal recourse if the compensation had not been fully deposited.
2. On the basis of the defence put forward by respondent-Insurance Company, the following issues were raised:
(a) Whether respondent no. 3 (the driver of the vehicle) was not holding a valid driving license to drive a passenger bus on the date of accident, if so, what is its effect? And
(b) Whether the vehicle on the date of accident was being plied in violation of terms of insurance policy and conditions of the route permit as the bus was overloaded?
3. These issues were dealt with by the Tribunal in the manner as follows:
"Issue No. 3:
To prove the issue, Incharge RTO Office Leh Mr. Jaswant Singh has been produced. According to this witness as per the record, which the witness had brought with him, the driver of the offending vehicle was not holding the valid driving licence to ply the passenger bus. Witness has stated that the licence to ply a public transport needed the endorsement as PSV (Passenger Service Vehicle). In case of the Driving Licence of the respondent No. 3 this endorsement was not there. Statement of Mr. Rattan Lal Assistant Branch Manager, National Insurance Company, Branch Leh is also to the same effect.
From the evidence adduced by the respondent No. 1 it becomes clear that respondent No. 2 had no valid driving licence to ply the offending vehicle at the time of the accident. Finding on this point is accordingly recorded. Now, what has to be its effect on the fate of the claim petition is not to be seen here. Since the respondent No. 1 has been given the liberty to file a separate case against the owner of the vehicle, effect of invalid driving licence of the driver of the vehicle will be seen in that separate case and not in the present case.
Issues 4 and 5 though framed, as having arisen in view of the pleadings of the parties, need no disposal, at this stage for the reason that respondent insurance company has been held to be free to launch a separate action against the owner of the offending vehicle after making the payment of the awarded amount with interest to the petitioners. Because petitioners in the subsequent case cant be dragged as a party, as they have nothing to agitate or to say in the dispute between the Insurance Company and the insured owner. That indeed would be a tussle between the Insurance Company on one hand and the owner of the offending vehicle on the other. Driver of the vehicle may have some involvement there, but the petitioners (claimants) have no concern at all with any such litigation. Therefore, leaving the above two issues open here same need to be adjudicated upon in a separate action to be brought by the respondent Insurance Company against the insured, who is the owner of the offending vehicle. In that separate action to be brought by the insurer, the insured would get every opportunity to defend. In the present petition paramount concern of this Forum has to be to relieve the claimants from the ordeals of the litigation as early as possible, distressed class as they are having lost their kith and kin; some of whom at the prime of their youth. Money may of course provide a succour to them, but it cant heal their wounds caused because of the loss of their blood relations."
4. Against the award of the Tribunal, respondent-Insurance Company preferred an appeal. The Appellate Court held that, when the Tribunal returned a finding that the driver was not authorised to drive public se
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.