IN THE HIGH COURT OF JUDICATURE AT MADRAS
KRISHNAN RAMASAMY, J.
The Branch Manager, M/s. Reliance General Insurance Co. Ltd, Villupuram - Appellant
Versus
Sarasu & Others – Respondents
C.M.A. No. 2189 of 2022 & C.M.P. No. 16972 of 2022
Decided On : 14-03-2024
Motor Vehicles Act - Liability Fixation - Section 173 - MCOP.No.142 of 2016 - Summary of Acts and Sections: Motor Vehicles Act, 1988, Section 173 - The court discussed the liability fixation in the context of the appellant's claim that the 9th respondent did not possess a valid driving license, leading to a violation of policy conditions. The court granted liberty to the appellant to recover the award amount from the 9th respondent/owner of the offending vehicle.
Fact of the Case:
The appellant challenged the judgment and decree awarding compensation for a fatal accident involving a motor cycle and a bi-cycle. The only issue was the fixation of liability, specifically regarding the 9th respondent's possession of a valid driving license.
Finding of the Court:
The court found that the 9th respondent did not possess a valid driving license, leading to a violation of policy conditions. The court granted liberty to the appellant to recover the award amount from the 9th respondent/owner of the offending vehicle.
Issues: The main issue was the fixation of liability, specifically whether the 9th respondent possessed a valid driving license at the time of the accident.
Ratio Decidendi: The court's decision was based on the failure of the 9th respondent to produce a valid driving license and the violation of policy conditions, leading to the grant of liberty to the appellant to recover the award amount from the 9th respondent.
Final Decision: The Civil Miscellaneous Appeal was allowed, granting the appellant liberty to recover the award amount from the 9th respondent without filing any separate application. The Tribunal was directed to transfer the award amount to the bank account of the claimants within three weeks.
JUDGMENT :
(Prayer : Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, to set aside the judgement and decree dated 18.03.2020 made in MCOP.No.142 of 2016 on the file of the Motor Accident Claims Tribunal, II Additional District Judge, Villupuram @ Tindivanam.)
1. This civil miscellaneous appeal has been filed challenging the judgment and decree dated 18.03.2020 in MCOP.No.142 of 2018.
2. The learned counsel for the claimant would submit that on 03.02.2013 when one Poongavanam was riding a bi-cycle at Marakkanam to Tindivanam Road, a Motor Cycle TVS Sport bearing Registration No.TN-16A-1863 came in a rash and negligent manner and dashed against him, due to which he was died at the Hospital on the same day. Considering all the aspects, the Tribunal had awarded the compensation in the following manner :
| S.No. | Heads | Compensation (Rs.) |
| 1 | Loss of Pecuniary Benefits | 7,42,500 |
| 2 | Loss of Consortium | 40,000 |
| 3 | Loss of Estate | 15,000 |
| 4 | Funeral Expenses | 15,000 |
|
| Total | 8,12,500 |
3. He would further submit that in the present case, there is no dispute with regard to the occurrence of accident and quantum of compensation awarded by the Tribunal. The only issue that has to be decided in this matter is with regard to the fixation of liability. Further, he would submit that the owner of the vehicle/9th respondent had insured his motorcyle with the appellant, however at the time of accident, 9th respondent was not having any valid driving license. In this regard, a letter has also been sent by the Tribunal to the 9th respondent, however, no reply was received by the appellant. The aforesaid aspects were recorded in the order passed by the Tribunal. Further, in the said order, it has been stated that since no charge has been framed with regard to the non-possession of driving license against the 9th respondent in Ex.P8/Charge Sheet, the Tribunal had failed to consider the contention made by the appellant before the Tribunal. Hence, he would contend that the Tribunal is supposed to decide independently based on the records available and it is not proper for the Tribunal to arrive at a conclusion merely based on the Ex.P8/ charge sheet, wherein the police had failed to include the charge of non-possession of driving license. Thus, insurance company is no way liable to pay the compensation. That apart, he would submit that the entire award amount has already been deposited by the Tribunal and hence, he requests this Court to order pay and recovery from the 9th respondent.
4. The notice has been served to the 9th respondent and the name of the 9th respondent has also been printed in the cause list. However, in spite of the same, there is no representation on behalf of the 9th respondent. Hence, this Court is inclined to pass the following order without any other option.
5. As far as claimant is concerned, he would submit that any order may be passed by this Court considering the facts and circumstances of the case.
6. Heard the learned counsel for the appellant and the respondents and also perused the documents available on records.
7. Considering the above submissions and on perusal of the award passed by the Tribunal, it appears that the Tribunal had merely accepted the contention of the appellant that the rider/9th respondent had not possessed a valid driving license and accordingly, sent a letter to the 9th respondent to produce the driving license of the driver. In spite of the same, the 9th respondent had not produced a copy of his driving license either before the Tribunal or before the appellant. Further, the 9th respondent had not even appeared before the Tribunal and deposed any oral evidence to prove that he had possessed a valid driving license. Hence, based on this material evidence, the Tribunal could have come to a conclusion that the 9th respondent had not posse
The central legal point established in the judgment is the liability of the Insurance Company based on the violation of policy condition due to the rider not possessing a valid driving license at the....
The Insurance Company may initially pay compensation to third-party claimants despite the driver lacking a valid license, with a right to recover from the vehicle's owner.
The court established the principle that an Insurance Company is entitled to recover the compensation amount from the owner of the vehicle after paying the same to the claimants, and that replication....
In the absence of credible evidence, the insurance company is liable to pay compensation for the violation of policy conditions.
The main legal point established in the judgment is the joint and several liability of the appellant and the insurance company to pay the compensation for the accident.
Liability of insurance company in cases where the driver does not possess a valid driving license under the Motor Vehicles Act.
In cases of motor vehicle accidents where the driver lacks a valid driving license, the 'pay and recover' principle applies, requiring the insurance company to satisfy the compensation award first an....
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.