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IN THE HIGH COURT OF PUNJAB AND HARYANA
A.L. BAHRI, N.K. KAPPOR, JJ.
National Insurance Co. Ltd. – Petitioner
Versus
Sucha Singh and Others – Respondents
First Appeal From Order No. 1550 of 1993
Decided On : 29-09-1993
Renewal of Driving Licences - Liability of Insurance Company - The court held that the Insurance Company would be liable to pay compensation if the licence had been renewed, even if it was originally a faked licence. The court interpreted Section 15 of the Motor Vehicles Act to emphasize that a faked licence could be validly renewed, and if renewed, it would be considered valid under the provisions of the Act.
Fact of the Case:
The Motor Accident Claims Tribunal concluded that the Insurance Company would be liable to pay compensation if the licence had been renewed, despite it being originally a faked licence. The Tribunal's finding was criticized for stating that a faked licence could not be validly renewed.
Finding of the Court:
The court agreed with the final conclusion of the Tribunal, emphasizing that a faked licence could be validly renewed under Section 15 of the Motor Vehicles Act, and if renewed, it would be considered valid. The appeal was dismissed.
Issues: Interpretation of Section 15 of the Motor Vehicles Act regarding the renewal of driving licences and the liability of the Insurance Company in the case of an accident caused by a driver with a renewed faked licence.
Ratio Decidendi: The court's decision was influenced by the interpretation of Section 15 of the Motor Vehicles Act, which allowed for the renewal of driving licences, even if originally faked, and emphasized the liability of the Insurance Company in such cases.
Final Decision: The appeal was dismissed, affirming the liability of the Insurance Company to reimburse the insured if an accident was caused by a driver possessing a licence which was duly renewed, even if it was originally faked.
JUDGMENT :
A.L. BAHRI, J.
1. We agree with the final conclusion arrived at by the Motor Accident Claims Tribunal that the Insurance Company would be liable to pay the compensation if the licence had been renewed, though originally it was a faked licence. Some of the observations made by the Tribunal are open to criticism, when the Tribunal gives finding that a faked licence could not be validly renewed, as it is not provided under the Motor Vehicles Act that at the time of renewal no tests are provided. Section 15 of the Motor Vehicles Act reads as under:-
"Renewal of driving licences - (1) Any licensing authority may, on application made to it, renew a driving licence issued under the provisions of this Act with effect from the date of its expiry.
Provided that in any case where, the application for the renewal of a licence is made more than thirty days after the date of its expiry, the driving licence shall be renewed with effect from the date of its renewal.
Provided further that where the application for the renewal of a licence to drive a transport vehicle or where in any other case the applicant has attained the age of 40 years, the same shall be accompanied by a medical certificate in the same form and in the same manner as is referred to in sub-section (3) Section 8, and the provisions of sub-section (4) of Section 8 shall, so far as may be, apply in relation to every such case as they apply in relation to a learner's licence."
2. A perusal of the same would show that in the given circumstances, even the medical test of the person asking for renewal of the licence could be conducted. If a licence is renewed, it gets validity in view of provisions of Section 15 of the Act. The Insurance Company would be liable to reimburse the insured if accident was caused by the driver and employee of the insured, possessing a licence which was duly renewed. The appeal is, therefore, dismissed.
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