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2025 Supreme(P&H) 1491

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sudeepti Sharma, J.
Ram Kumar Through His Lrs And Anr. - Appellants
Versus
National Insurance Company Ltd And Ors. - Respondents
FAO-5696-2017 (O&M)
Decided On : 15-12-2025

Advocates Appeared:
For the Appellant :Mr. Sanjay Jain, Advocate
For the Respondent:Mr. Amit Jaiswal, Advocate

The driving licence of the vehicle operator was legally valid at the time of the accident, and the Tribunal's erroneous conclusion of cancellation led to incorrect recovery rights granted to the insurer.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Compulsory insurance - Appellant contests liability for compensation assigned by Tribunal - The appellant argues that the driver had a valid driving licence at the time of the accident, contrary to Tribunal's finding of licence cancellation due to non-digitization. (Paras 2, 10, 12)

(B) Recovery rights - The response from the insurer hinges on the invalidity of the driver’s licence - Court found cancellation was contingent on a post-accident deadline for digitization not being met. (Paras 14, 15)

(C) The court affirms that the driver’s licence was valid at the time of the incident, as the accident occurred before the grace period for compliance with the digitization policy was lapsed. (Paras 12, 16)

Facts of the case:
The appellant, an owner of the vehicle, contests the Tribunal's award of compensation of Rs.11,79,000/- to the claimants, asserting that the driver had an effective licence at the time of the accident which caused the death of Sonia.

Findings of Court:
The court set aside the insurer's recovery rights granted by the Tribunal, affirming the driver’s licence was valid during the incident.

Issues: Whether the driving licence was valid at the time of the accident? Whether the insurance company has recovery rights?

Ratio Decidendi: The court concluded that the driver’s licence was renewed and valid as the cancellation upon non-digitization only takes effect post-deadline, which had not yet been reached at the time of the accident.

Result: Appeal allowed.

Table of Content
1. facts of the case regarding accident and claims (Para 1 , 2 , 3 , 4 , 5 , 6)
2. arguments presented by parties (Para 7 , 8)
3. analysis of driving license and liability (Para 10 , 11 , 12 , 13 , 14 , 15 , 16)
4. final decision regarding appeal and compensation (Para 17 , 18 , 19)

JUDGMENT :

SUDEEPTI SHARMA, J.

1. The present appeal has been filed by the appellant-owner of the offending vehicle against the award dated 22.02.2017 passed in a claim petition filed under Section 166 of the Motor Vehicles Act, 1988 by the Motor Accident Claims Tribunal, SAS Nagar, Mohali (for short, 'the Tribunal'), wherein the appellant was fastened with the liability to pay the compensation of Rs.11,79,000/- to the claimants along with interest @ 6% per annum from the date of filing of claim petition till recovery.

BRIEF FACTS OF THE CASE

2. Brief facts of the case are that on 23.11.2014, when Sonia along with her father Om Parkash Singh was going on left hand of the road for her place of working i.e. Maya Garden, a Tata Sumo bearing registration No. HR-37A-7456 came from Zirakpur side being driven by respondent no.1 in a rash and negligent manner, brought his vehicle on extreme left side of the road in katcha portion and hit against Sonia, who suffered multiple injuries on her persona and succumbed to the same on the spot. Driver of offending vehicle alighted from the vehicle, but on seeing the people gathering at the spot, he slipped from the spot. Sonia was shifted to Civil Hospital, Dera Bassi, but she was declared dead. It was further pleaded that Sonia was unmarried, 20 years and 09 months of age. She was employed as computer operator with Maya Garden, Zirakpur and getting Rs. 15,000/- per month as salary.

3. Upon notice of the claim petition, respondents therein appeared and contested the claim petition by filing separate written statement denying the factum of accident/compensation.

4. From the pleadings of the parties, the Tribunal framed the following issues:-

1. Whether Sonia died in a road side accident caused by respondent no.1 while driving vehicle no. HR-37A-7456? OPC

2. Whether the claim petition is not maintainable ? OPR

3. Whether the claimants are entitled to receive compensation , as prayed for, if so to what extent and from whom ? OPC

4. Whether respondent no.1 being driver of above said vehicle was not holding a valid and effective driving licence, route permit at the time of accident ? OPR-3

5. Whether respondent no.2 had committed breach of terms and conditions of the insurance policy, if so, its effect ? OPR-3.

6. Relief.

5. Thereafter, both the parties led their evidence in support of their respective pleadings.

6. After taking into consideration the pleadings and the evidence on record, the learned Tribunal awarded compensation to the claimants. However, the respondent No.1-Insurance Company was held liable to pay compensation at first instance and recovery rights were given to respondent No.1-Insurance Company to recover the same from appellant-owner of the offending vehicle. Hence, the present appeal.

SUBMISSIONS OF LEARNED COUNSEL FOR THE APPELLANT:

7. Learned counsel for the appellant-owner of the offending vehicle has gravely erred in giving recovery right to the insurance company on erroneous premise that the driver of the offending vehicle does not possess the valid and effective licence at the time of accident. He further contends that the appellant has placed on record the driving licence of driver of the offending vehicle and the contents of the driving licence makes it abundantly clear that on the date of accident, the driving licence was effective and valid. Therefore, he prays that the present appeal be allowed and respondent No.1-insurance company be held solely liable to pay compensation to claimant-respondent No.2 and 3.

8. Learned counsel for respondent No.1-insurance company contends that the learned Tribunal has rightly decided the issue of liability, therefore, he prays for dismissal of the present ap

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