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2015 Supreme(P&H) 2340

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SUDEEPTI SHARMA, J.
Jagdev Singh and Another – Appellants
Versus
Shriram General Insurance Co. Ltd. and Others – Respondents
FAO No. 2305 of 2015
Decided On : 08-04-2026

Advocates Appeared:
For the Appellant : R.S. Manhas
For the Respondent: Punit Jain

When a material document affecting the liability of parties is introduced at the appellate stage, the court may remand the matter to the tribunal for fresh adjudication to ensure the validity of the driving license is properly examined in the interest of justice.

Headnote:(A) Motor Vehicles Act, 1988 - Section 166 - Motor accident claim - Liability of owner and insurer - Validity of driving license - Additional evidence - Appellate court's power to remand - Where the validity of a driving license is central to the determination of liability and recovery rights, and where relevant documents were not considered by the tribunal, the matter warrants reconsideration to ensure justice. (Paras 2, 5, 6, 7)

(B) Appellate Procedure - Remand - When the adjudication of a core issue is incomplete due to the absence of material evidence, the appellate court may set aside the award to the limited extent of that issue and remand the matter for fresh consideration after allowing parties to lead evidence. (Paras 6, 7)

Facts of the case:
The appeal challenges an award where the tribunal held the owner and driver liable for compensation, granting recovery rights to the insurer on the ground that the driver possessed a foreign driving license. The appellants sought to introduce additional evidence, including a domestic driving license and its verification report, to prove the driver held a valid license at the time of the accident.

Findings of Court:
The court found that the validity of the driving license is a material issue affecting the liability of the insurer. Since the tribunal had not examined the additional documents, the court deemed it necessary to remand the matter for fresh adjudication.

Issues: Whether the appellate court should allow additional evidence regarding the validity of a driving license and whether the matter should be remanded to the tribunal for fresh adjudication on this specific issue.

Ratio Decidendi: The court held that when a crucial document affecting the liability of parties is produced at the appellate stage, the interest of justice requires that the matter be remanded to the lower court for fresh adjudication after providing both parties an opportunity to lead evidence.

Result: Appeal disposed of; impugned award set aside to the limited extent of the license validity issue; matter remanded to the tribunal for fresh adjudication.

Table of Content
1. overview of the appeal against the tribunal award. (Para 1)
2. contentions regarding admissibility of additional driving license evidence. (Para 2 , 3)
3. judicial assessment regarding the necessity of evidentiary verification. (Para 4 , 5 , 6)
4. remand of proceedings for fresh factual adjudication. (Para 7)
5. procedural directions for expeditious disposal and final order. (Para 8 , 9 , 10 , 11)

JUDGMENT :

SUDEEPTI SHARMA, J.

1. The present appeal has been preferred against award dated 08.01.2015 passed by Motor Accident Claims Tribunal, Ludhiana (in short ‘Tribunal’), whereby, claim petition filed under Section 166 of the Motor Vehicles Act, 1988 was allowed and the appellants (driver and owner of the offending vehicle) were held liable to pay compensation.

2. Learned counsel appearing on behalf of the appellants contends that the learned Tribunal erred in granting recovery rights to respondent No.1–insurance company solely on the ground that the driver of the offending vehicle was holding driving licence issued by a foreign country. He further contends that an application for additional evidence (CM No.7174-CII of 2015) has been filed, whereby the appellants seek to place on record driving licence issued by the Indian authorities along with its verification report (Annexures A-1 and A-2). The said documents, according to the appellants, would demonstrate that the driver was duly holding a valid and effective driving licence on the date of the accident. He, therefore, prays that the present appeal be allowed and respondent No.1-Insurance Company be held liable to pay compensation.

3. Per contra, learned counsel for the respondent No.1–insurance company opposes the application and submits that the authenticity and veracity of the licence (Annexure A-1 and A-2) cannot be verified at the appellate stage. He, therefore, prays that the present appeal be dismissed.

4. I have heard learned counsel for the parties and perused the whole record of this case with their able assistance.

5. Upon due consideration, this Court is of the opinion that the issue as to whether the driver of the offending vehicle was holding a valid and effective driving licence at the time of the accident goes to the root of the matter, particularly in the context of fastening liability and the grant of recovery rights to the insurer. The additional documents sought to be produced by the appellants, if proved in accordance with law, may have a material bearing on the adjudication of this issue.

6. In such circumstances, this Court deems it appropriate, in the interest of justice, to afford an opportunity to both parties to lead evidence on this aspect. Since the Tribunal has not had the occasion to examine the said documents or adjudicate upon their authenticity, the matter warrants reconsideration at the level of the Tribunal.

7. Accordingly, the impugned award is set aside to the limited extent of the issue relating to the validity of the driving licence of the driver of the offending vehicle and the consequential grant of recovery rights to the insurance company. The matter is remanded to the learned Tribunal for fresh adjudication on the said issue after permitting both parties to adduce evidence, including examination-in-chief and cross-examination, in accordance with law.

8. Having regard to the fact that the claim petition pertains to an accident of the year 2013, learned Tribunal is directed to make endeavour to decide the matter expeditiously, preferably within a period of four months from the date of appearance of the parties.

9. The parties are directed to appear before the learned Tribunal on 28.04.2026.

10. The appeal stands disposed of in the above terms.

11. Pending application(s), if any, also stand disposed of.

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