IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
Vinod Chatterji Koul, J.
Mohammad Abbas Wani – Petitioner
Versus
Sharifa and Ors. – Respondents
CMAM No.137/2015 c/w RPC No.01/2016
Decided On : 10-03-2022
Motor Vehicles Act, 1988-Section 149 (2)(a) (ii)-Motor insurance--Driving licence--Death in motor accident-It is open to insurance company to take a defence in a claim petition that driver of offending vehicle was not duly licensed, but it is required to prove such a plea-Nevertheless, even after proving that licence was a fake one, it is to be looked into that owner of vehicle while hiring a driver checked licence and satisfied himself as to competence of driver-When a driver is hired, owner of vehicle has to check whether driver has a driving licence-If driver produces a driving licence, which on face of it looks genuine, owner is not expected to find out whether licence has in fact been issued by competent authority or not-It would be strange that insurance companies would expect owners to make enquiries with RTOs, which are spread all over country, whether driving licence shown to them is valid or not-Where owner has satisfied himself that driver has a licence and is driving competently, there would be no breach of Section 149 (2)(a) (ii) and insurance company would not then be absolved of its liability-It is not the case of insurance company that despite knowing that driver was holding fake licence, owner permitted him to drive vehicle-In such circumstances, holding owner liable to pay compensation or giving recovery right to insurance company to pay compensation is against settled legal position and to this extent impugned Award is liable to be set-aside-Indulgence of this Court has rightly been invoked by appellant-Impugned award, to the extent it gives right of recovery to respondent-United India Insurance Company Limited, set-aside. (Paras 15 and 16)
Result-Appeal allowed.
JUDGMENT :
Vinod Chatterji Koul, J.-Challenge in this Appeal is thrown to Award dated 11th July 2015, passed by Motor Accident Claims Tribunal, Anantnag, in a claim petition, bearing Claim No.78/2008 titled Sharifa and others v. Shabir Ahmad Bhat and others, on the grounds made mention of therein.
2. A claim petition, as is apparent from perusal of the file, was filed by claimants – respondents 1 to 4 herein before the Tribunal on 18th December 2008. In claim petition, claimants/respondents 1 to 4 stated that on 30th September 2008, the deceased, Bashir Ahmad Wagay, was busy in distributing the milk and other associated items including packed milk to shopkeepers of alongside road. It was also stated in the claim petition that deceased boarded at Anantnag in offending vehicle (TATA 407), bearing registration no.JK03-888, and kept the luggage at roof top of offending vehicle, and on reaching at Hiller Arhama, deceased asked driver to stop the vehicle as he had to pull down luggage/milk items. The driver, after stopping the vehicle, told deceased to pull down the luggage but without waiting the deceased, the driver started driving which resulted fall of deceased from roof top of the vehicle. It was also pleaded in claim petition that deceased sustained injuries on the body, particularly the head. The deceased was taken to hospital at Kokernag, wherefrom he was referred to SKIMS, Srinagar, where he succumbed to injuries on 2nd October 2008. According to claimants, the accident occurred because of rash and negligent act of driver of offending vehicle. The claimants, on the basis of claim put up before the Tribunal, sought compensation in the amount of Rs.39.90 Lakhs.
3. Opposite side, before the Tribunal, filed their objections resisting the claim petition.
4. The Tribunal, taking into account the pleadings of the parties, framed following issues for determination of claim petition:
(ii) If issue no.1 is proved in affirmative, whether the petitioners are entitled to compensation, if so, from whom and to what extent? OPP
(iii) Whether the respondent no.1 was not holding valid and effective driving licence on 01.10.2008, if so what is its effect upon the claim petition? OPR 3
(iv) Relief.
5. Claimants/respondents produced witnesses, namely, Mohammad Wagay, Gh. Qadir Wagay, and Manzoor Ahmad Wagay besides, claimant/respondent no.1. The owner/driver of offending vehicle also produced and examined witness, namely, Parvaiz Ahmad Malik. Respondent-Insurance Company produced witnesses, Mohd Abas Wani, Shabir Ahmad Bhat, and Irshad Ahmad Rather, Licencing Clerk RTO Srinagar.
6. The Tribunal, while considering Issue no.1, has discussed the statement of witnesses and only thereafter, found that deceased, Bashir Ahmad Wagay, died as a result of fatal injuries received in a vehicular accident involving offending vehicle due to negligence of its driver and accordingly, decided Issue no.1 in favour of claimants.
7. Issue no.2, viz. whether claimants are entitled to compensation, if so, from whom and to what extent, was to be proved by claimants/ respondents. The Tribunal decided Issue no.2 in favour of claimants. The Tribunal, in the first instance, proceeded to calculate compensation to be paid to claimants. The Tribunal relied upon the law laid down by the Supreme Court in Sarla Verma v. Delhi Transport Corporation, 2009 (3) Supreme 487. The Tribunal found deceased was 30 years of age and fixed his minimum income as Rs.6000/- per month and thereafter, applied multiplier and multiplicand. The Tribunal assessed, calculated and found claimants entitled to total compensation of Rs.16,07,000/- with 9% per annum. The Tribunal decided Issue no.2 in favour of
Sarla Verma v. Delhi Transport Corporation
U.P. State Road Transport Corporation v. Mamta and others
Pappu and others v. Vinod Kumar Lamba and another
Skandia Insurance Co. Ltd. v. Kokilaben Chandravadan and others
Point of Law : Burden lies on the owner of proving foundational facts including satisfaction of authenticity of driver's licence prior to latter's appointment - This burden can be discharged in light....
Section 149(2) deals with insurer's right to defend an action on account of breach of policy condition.
Motor insurance policy – Generally, no person employing a driver would undertake such a verification exercise and would be satisfied with production of a licence issued by a seemingly competent autho....
The insurer must prove a breach of policy conditions by the insured to avoid liability; mere invalidity of a driving license does not absolve the insurer from responsibility.
Insurance companies cannot evade liability for third-party claims solely due to a driver’s lack of valid license; they must prove the owner's negligence to avoid statutory obligations.
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