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2010 Supreme(J&K) 188

IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Muzaffar Hussain Attar, J.
Oriental Insurance Co. Ltd. - Appellant
Versus
Nazir Ahmad Chowdhary & Ors. - Respondent
CIMA No. 24/2008, CMP No. 99/2008
Decided On : 03 May, 2010

Advocates Appeared:
Advocate For Appellant: J.A. Kawoosa
Advocate For Respondent: Younis Bhat

The insurance company can defend a claim petition based on limited statutory grounds, and the burden of proving the absence of a valid driving license lies with the insurance company.

Headnote:

Motor Accident Claims - Negligence - Motor Vehicles Act, 1988 - Sections 279/337, 304-A, 147, 149, 170 - The judgment discusses the liability of the insurance company in a motor accident claim, the requirement of a valid driving license, and the determination of compensation. The court emphasized the statutory provisions related to driving licenses and the grounds on which the insurance company can defend a claim petition. It also highlighted the need to prove the absence of a valid driving license and the determination of compensation based on the claimant's permanent disability.

Fact of the Case:

The claimant suffered grievous injuries in a motor accident and filed a claim petition for compensation. The insurance company disputed the claim, arguing that the driver did not hold a valid driving license.

Finding of the Court:

The claimant succeeded in proving the permanent disability and dependency on medical aid. The insurance company failed to prove the absence of a valid driving license for the driver. The court dismissed the appeal, upholding the compensation awarded by the Tribunal.

Issues: Validity of driving license, determination of compensation, grounds for challenging the award

Ratio Decidendi: The insurance company can defend a claim petition based on limited statutory grounds. The burden of proving the absence of a valid driving license lies with the insurance company. The determination of compensation depends on the claimant's permanent disability and dependency on medical aid.

Final Decision: The appeal was dismissed, and the compensation awarded by the Tribunal was upheld.

1. On 16th June, 2000, the passenger vehicle bearing registration mark JK02D 7077 fell into a 200 feet deep gorge. The accident is attributed to the alleged negligence of the driver of the said vehicle. Some passengers lost their lives and some suffered injuries. Respondent No. 1 (for short "claimant") was one such passenger who suffered grievous injuries in the said accident.

2. Once recovered claimant filed claim petition before learned Motor Accident Claims Tribunal, Srinagar (for short Tribunal), claiming therein compensation for an amount of Rs. 40,05,000/-. The basis of the filing of the claim petition is that the claimant because of the accident suffered compound fracture L1 with bladder disturbance and Monoplegia left leg. The claimant claimed to have suffered permanent disability of spine with limb. In the claim petition, monthly income was stated to be 15,000/- and age was stated to be 30 years. The basis of filing the claim petition was that because of the accident the claimant suffered permanent disability and was thus disabled to earn livelihood for himself and also for his family members.

3. The case FIR No. 54 of 2000 under Sections 279/337, 304-A RPC was registered with Police Station Jhajjar Kotli. The vehicle was admittedly insured on the date the accident took place.

4. On notice respondent No. 3, Insurance Company filed written statement/objections to the claim petition.

5. The appellant denied the claim put forth by the claimant in the claim petition as also disputed the basis thereof. One of the grounds taken in the objections was that the driver was not holding a valid driving license.

6. The learned Tribunal vide its order dated 18.02.2002 framed five issues. The issue No. 3 provided as to whether the driver of the offending vehicle was not holding valid driving licence on the date of accident and as such the Insurance Company cannot be saddled with the liability

7. The Learned Tribunal initially passed the interim award on 18.06.2003 directing the appellant to pay an amount of Rs. 25,000/- under no fault liability to the claimant. The said interim order has not been challenged by the appellant. While passing the interim award under no fault liability prima facie a view was taken by the learned Tribunal that as the insurance policy reveals that on the date of accident the vehicle was insured so the appellant company was liable to pay the interim award in an amount of Rs. 25,000/- to the claimant.

8. The claimant in support of his claim petition examined four witnesses which includes the statement of the claimant as well. The Insurance Company examined one clerk.

9. The claimant has succeeded in discharging the burden to prove the issues, whereas appellant has failed to prove the issues burden whereof was on it.

10. The learned Tribunal passed award for an amount of Rs. 7,05,800/- along with interest of 6% per annum from the date of institution till its final realization. The award has been passed on 26.12.2007 by the learned Tribunal.

11. The appellant being aggrieved of the said award has challenged the same inter alia on the grounds that one-third of amount from the award amount has not deducted by the learned Tribunal and that driver was not holding a valid driving licence, the effect whereof would be that the appellant company is not liable to indemnify the insured.

12. Heard learned counsel for parties. Considered the matter.

13. Mr. J. A. Kawoosa, learned counsel appearing for appellant while challenging the validity of the award passed by the learned Tribunal submitted that appellant company had discharged the burden of proving the issue No. 3 which provided whether the driver of the offending vehicle was not holding a valid driving license and the Insurance company was not thus liable to indemnify the insured. Learned counsel further submitted that one-third of the award amount was required to be deducted by the learned Tribunal and learned Tribunal having failed to do so has committed a mistake in law. Lea





























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