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2000 Supreme(P&H) 1556

PUNJAB & HARYANA HIGH COURT
R.L.Anand, J.
National Insurance Company Limited
Versus
Surjeet Kaur
First Appeal Order No. 3180 of 1999,
Decided On : DECEMBER 19, 2000

The main legal point established in the judgment is that the insurance company is liable to pay compensation to the third party, as per sec. 149 (4) of the Motor Vehicles Act, and can recover the amount from the owner if ordered by the tribunal.

Headnote:

Motor Vehicles Act - Compensation - Sec. 166 - [166] - The court discussed the liability of the insurance company under sec. 149 (4) of the Act, which states that the company is liable to pay compensation to the third party, even if the driver did not have a valid driving license. The court referred to case law to establish that the insurance company is obligated to indemnify the insured and can recover the amount from the owner if so ordered by the tribunal.

Fact of the Case:

The claim petition was filed under sec. 166 of the Motor Vehicles Act against the owner, driver, and the insurance company, seeking compensation for the death of the deceased in a motor vehicle accident. The insurance company objected to the compensation awarded by the tribunal, claiming that the driver did not possess a valid driving license.

Finding of the Court:

The court found that the insurance company is liable to pay compensation to the third party, as per sec. 149 (4) of the Act, and can recover the amount from the owner if ordered by the tribunal. It dismissed the appeal, stating that the insurance company failed to discharge its onus under issue No.2a and cannot escape from its liability.

Issues: The issues included determining the cause of the accident, the amount of compensation, and the validity of the driver's license.

Ratio Decidendi: The court established that the insurance company is obligated to indemnify the insured and is liable to pay compensation to the third party, even if the driver did not have a valid driving license. It emphasized that the company can recover the amount from the owner if ordered by the tribunal.

Final Decision: The appeal was dismissed with no order as to costs.

Judgment

R. L. Anand, J.

1. This appear filed by national Insurance Co. Ltd. has been directed against the award dated 24.7.1999, passed by the M. A. C. T. , Patiala, who allowed the claim petition of Surjeet Kaur and others under sec. 166 of the Motor vehicles Act, vide which the Tribunal in para 11 of the award held that the compensation which was awarded to the claimants vide award dated 21.5.1992 was just and fair compensation and there is no necessity to interfere in the same. Meaning thereby that the award dated 21.5.92 was affirmed. Vide the impugned order dated 24.7.1999, the finding is also to the effect that the insurance company is liable to the full extent and as such, the Tribunal also directed it to pay to the claimants the awarded amount along with interest up to date and rs.5,000 as costs.

2. The brief facts of the case are that surjeet Kaur and others filed a claim petition under sec. 166 of Motor Vehicles act against Sardara Singh (owner), Gurdev Singh (driver) and National Insurance co. Ltd. and claimed compensation by alleging that the deceased Gurpal Singh, aged 45 years, was a school teacher and he was also a dairy owner. He died on 13.6.1990 at 2 p. m. when he was returning to his village on Hero Majestic moped No. CHP 4688 and was knocked down by the truck No. PAT 8380. The claim petition was originally filed against Sardara Singh (owner) and Gurdev Singh (driver ). At that time, the insurance company was not impleaded. Notice was issued to the respondents but they were proceeded ex pane on 1.4.1992 and 22.2.1992 respectively. Thereafter, ex parte evidence was recorded and the Tribunal was pleased to pass an award on 21.5.1992 awarding a sum of rs.1,80,000 to the claimants along with interest at the rate of 12 per cent from the date of filing of the application till payment. Thereafter, the claimants filed an execution application on 25.11.1995. Mr. B. B. Gupta, Advocate, gave the appearance on behalf of National Insurance Co. Ltd. and filed the objection petition against the award.

3. On 26.5.1997, the Tribunal decided the objections and held that liability of the insurer arising under the award shall be adjudicated on merits, after hearing both the parties. Resultantly, the objection petition of the company was accepted to the extent indicated above. Thereafter, written statement of the company was taken on record and vide order dated 4.8.1997, the following issues were framed:

" (1) Whether Gurpal Singh died due to motor vehicle accident on 13.6.1990 driving a truck No. PAT 8380 rashly and negligently by respondent No.2? opa

(2) To what amount claimants were entitled to recover the compensation amount from respondent No.3? OPA

(3) Relief. "

4. On 29.1.1999, the following additional issue was also framed:

" (2a) Whether the respondent No.2 was holding a legal and valid driving licence, if so its effect? OPR-3"

5. The claimants examined Surjit Kaur as AW 1, who testified that her deceased husband was a teacher in a Government school at Masol. He was drawing Rs.2,700 per month as salary and was also running a dairy farm and was earning Rs.1,000 per month from that profession. She and her husband had seven children who were also dependent on the income of the deceased. Had the deceased been alive, he would have been promoted to higher post in the education department and his salary would also have increased. The claimants further examined AW 2, Pritam Singh. Pritam singh and Mohinder Singh were standing at the Bus Stand, Banur, when they saw the deceased driving his moped on the correct side of the road at normal speed and a truck came from behind at a very high speed. The driver of the truck did not blow any horn and was driving rashly and negligently. The truck hit against the deceased as a result of which he received fatal injuries and died at the spot. The matter was reported to the police by Pritam singh, AW 2 and F. I. R. , Exh. A-1 was recorded. Jaswinder Singh, AW 3, testified that he knew Gurdev
























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