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2016 Supreme(J&K) 663

IN THE HIGH COURT OF JAMMU AND KASHMIR
Ramalingam Sudhakar, J.
New India Assurance Co. Ltd. - Appellant
Vs.
Sunita Devi - Respondent
CIMA No. 196 of 2010
Decided On : 29-09-2016

Advocates Appeared:
For the Appellant :Mr. R.K. Gupta, Sr. Advocate With Mr. Prem Sadotra, Advocate
For the Respondent:Mr. P.S. Pawar, Advocate

The main legal point established in the judgment is the right of the appellant-Insurance Company to examine the witness on the issue of the driver's valid driving license and the Tribunal's error in closing the evidence without giving the appellant-Insurance Company an opportunity to rebut the liability.

Headnote:

Insurance - Fatal Accident - Valid Driving License - Tribunal's Error in Closing Evidence - 'Pay and Recover' - Remand for Re-Enquiry

Fact of the Case:

The appeal concerns a fatal accident in which the deceased was hit by a private bus insured with the appellant-Insurance Company. The appellant challenges the award on the basis that the driver did not have a valid driving license at the time of the accident.

Finding of the Court:

The court found that the negligence of the driver was not in dispute, but the appellant-Insurance Company was not given an opportunity to rebut the liability on the plea that the owner of the vehicle alone is liable. The court confirmed the award in favor of the claimants but allowed the appellant-Insurance Company to examine the witness on the issue of the driver's valid driving license and remitted the matter back to the Tribunal for re-enquiry.

Issues: The issues revolved around the negligence of the driver, the liability of the appellant-Insurance Company, and the Tribunal's error in closing the evidence without giving the appellant-Insurance Company an opportunity to rebut the liability.

Ratio Decidendi: The court held that the Tribunal erred in not allowing the appellant-Insurance Company to examine the witness on the issue of the driver's valid driving license, and therefore, the matter was remitted back to the Tribunal for re-enquiry.

Final Decision: The appeal was partly allowed, confirming the award in favor of the claimants but allowing the appellant-Insurance Company to examine the witness on the issue of the driver's valid driving license and remitting the matter back to the Tribunal for re-enquiry.

JUDGMENT :

Mr. Ramalingam Sudhakar, J.

This is an appeal of the year 2010.

2. The Insurance Company is on appeal challenging the award dated 24.10.2009 passed in File No. 162/Claim Petition.

3. Heard Mr. R. K. Gupta learned Senior counsel for the appellant as also Mr. P. S. Pawar, learned counsel for the respondents.

4. It is a case of fatal accident in which one Mulkh Raj died. The Insurance Company has filed this appeal on a limited scope. Accident in this case happened on 28.01.2005. The deceased, Mulkh Raj, walking on the road was hit by a private bus bearing registration No. JK02T-3378 insured with the appellant-Insurance Company.

5. The finding of the negligence on the part of the driver of the offending vehicle is not in dispute. The appellant disputes its liability on the plea that the driver of the vehicle did not have a valid driving license at the time of accident. The appellant-Insurance Company in the proceedings before the Tribunal raised a specific plea in this behalf. It submitted Diet Expenses for summoning an officer of the Licensing Authority Udhampur. The Tribunal without giving the appellant-Insurance Company an opportunity closed the evidence and proceeded to pass award. In all a sum of Rs. 5,90,000/- with interest @ 7.5% per annum was awarded to the claimants wife, daughter, minor sons and mother of the deceased.

6. On the quantum of compensation awarded, the appellant is not disputing. Appellant states that claimants can take the balance of the award amount if they have not already withdrawn. If the Court is inclined to remand the matter for re-enquiry, insofar as the plea for pay and recover' is concerned, under no circumstances the claimants will be asked to refund the amount. Their entitlement to receive the amount awarded by the Tribunal with interest is absolute and unchallenged. The said plea of the appellant-Insurance Company is recorded.

7. In view of the above, this Court is inclined to proceed with the next issue as to whether the Tribunal was justified in closing the evidence without giving the appellant-Insurance Company an opportunity to rebut the liability on the plea that the owner of the vehicle alone is liable. The Insurance Company has not been given right to 'pay and recover' from the owner of the vehicle on account of the fact that the driver did not hold a valid driving license. The request for summoning the witness was turned down by the Tribunal without any just and reasonable cause. There is no serious objection from the respondent. The right to examine the witness cannot be fore losed. The Tribunal fell into error to that extent.

8. In this view of the matter, the appeal is allowed to the limited extent as follows:

(i) The award in favour of claimants is confirmed. They are entitled to withdraw the same and they will not be liable to refund the same in any circumstance.

(ii) Appellant-Insurance Company will be entitled to examine the witness before the Tribunal on the short issue as to whether the driver of the offending vehicle had a valid driving license or not. If they are successful in proving that the driver did not hold a valid driving license, the Insurance Company is entitled to raise the plea of 'pay and recover.

9. To this extent, the appeal is allowed and the matter is remitted back to the file of Presiding Officer-MACT Kathua for considering the specific issue as above.

10. Appeal partly allowed as above.


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