High Court Of Madhya Pradesh
B. A. KHAN, SHAMBHOO SINGH
NATIONAL INSURANCE CO.LTD - Appellant
Versus
MAINABAI - Respondents
M. A. 699 Of 1997
Decided On : 04/07/1999
MOTOR VEHICLES ACT - SECTION 169 - INSURANCE - BREACH OF TERMS AND CONDITIONS - VALIDITY OF DRIVING LICENCE - COMPENSATION - ASSESSMENT.
Fact of the Case:
A truck insured with the appellant insurance company collided with a jeep, resulting in the death of four passengers and injuries to others. The insurance company denied liability, claiming that the truck driver did not have a valid driving license and that the owner breached the policy's terms and conditions. The claimants sought compensation for the accident victims.
Finding of the Court:
The Tribunal held that the accident was caused by the negligence of the truck driver and awarded compensation to the claimants. The insurance company appealed, arguing that the Tribunal erred in closing its evidence and that the owner breached the policy's terms and conditions by employing a driver with an invalid license.
Issues: 1. Whether the Tribunal erred in closing the insurance company's evidence. 2. Whether the owner breached the policy's terms and conditions by employing a driver with an invalid license.
Ratio Decidendi: 1. The insurance company failed to take necessary steps to ensure the attendance of its witnesses and did not seek assistance from the Tribunal to serve summons or obtain coercive process. The Tribunal was not obligated to ensure the attendance of witnesses for the parties. 2. The insurance company failed to prove that the driver did not have a valid license. The endorsement on the letter stating that the license was not issued to the driver was not made in the presence of the insurance company's witness and was not a public document. Even if the license was invalid, the owner could not be expected to verify its genuineness before employing the driver. The insurance company could recover the compensation amount from the driver and owner, but the claimants could not be left remediless.
Final Decision: The appeals filed by the insurance company were dismissed, and the cross-objections filed by the claimants were also dismissed. The Tribunal's awards were upheld.
( 1 ) THIS judgment shall govern the disposal of M. A. Nos. 699 of 1997 (Claim Case No. 160 of 1994), 700 of 1997 (Claim Case No. 10 of 1997), 701 of 1997 (Claim Case No. 158 of 1994), 702 of 1997 (Claim Case No. 159 of 1994), 709 of 1997 (Claim Case No. 157 of 1994), C. Rev. Nos. 961 of 1997 (Claim Case No. 12 of 1997), 963 of 1997 (Claim Case No. 9 of 1997) and 965 of 1997 (Claim Case No. 11 of 1997) filed by the insurance company as they arise out of the same accident and common question of law and facts arise therein.
( 2 ) FACTS leading to these misc. appeals and civil revisions are that on 2. 4. 92 Asha, her husband Natwarlal, Vimla, Baby Pinki, radheshyam, Kanhaiyalal, Bharatsingh and others were going from Neemuch to mandsaur travelling in jeep No. MPM 1635. Near village Thadod, truck No. CPV 5577 belonging to non-applicant Sudhabai, driven by non-applicant Ranveersingh and insured with the appellant came from opposite direction in a rash and negligent manner at a high speed and dashed against the jeep as a result of which Asha, natwarlal, Vimla and Baby Pinki died and other persons got injured. The injured and the legal representatives of the deceased persons filed Claim Case Nos. 160 of 1994, 10 of 1997, 158 of 1994, 159 of 1994, 157 of 1994, 12 of 1997, 9 of 1997 and 11 of 1997 for grant of compensation. The respondents/non-applicant owner and the appellant/non-applicant insurance company resisted the claim and averred that the accident occurred due to rash and negligent driving of the jeep. The appellant, inter alia, also pleaded that the driver of the truck had no valid and effective licence on the date of accident and thereby breach of the terms and conditions of the insurance policy was committed, therefore, it was not liable to pay compensation. In any case, the liability of the truck owner would not exceed 50 per cent. The Tribunal after appreciation of evidence held that the accident occurred due to rash and negligent driving of truck No. CPV 5577 by respondent/non-applicant driver. It also held that the appellant failed to prove that the driver had no valid licence and awarded compensation. The appellant filed M. A. Nos. 699 of 1997, 700 of 1997, 701 of 1997, 702 of 1997 and 709 of 1997 and civil Revision Nos. 961 of 1997, 963 of 1997 and 965 of 1997 (where amount was not awarded) against the awards passed by the Tribunal. The claimants also filed cross-objections.
( 3 ) MR. H. G. Shukla, learned counsel for the appellant insurance company, argued that the learned Tribunal committed grave error in closing the evidence of the appellant insurance company on 12. 5. 1997. The appellant had paid process fee thrice as directed by the Tribunal. But it failed to get the summons served, therefore, the appellant could not be blamed for the absence of the witnesses. He contended that the appellant could not cause appearance of r. T. O. , Jhansi before the Tribunal on its own. His presence could be procured only through Tribunal for which process fee was paid. He, therefore, prayed that all the cases be remanded to the Tribunal for giving appellant an opportunity of producing its witnesses. He further prayed that the tribunal also fell in error in not consolidating all these cases as they arise out of the same accident. On the other hand, Mr. V. K. Jain, Mr. Sunil Jain and Mr. Chawla, learned counsel for the claimants, supported the order dated 12. 5. 1997.
( 4 ) HEARD learned counsel and examined the record. It is true that the Tribunal had power to enforce the attendance of the witnesses under section 169 of the Motor vehicles Act. Though the appellant did not deposit expenses and only paid process fee for summoning of its witnesses on 7. 2. 97, 17. 3. 1997 and 25. 4. 1997 even then the tribunal issued summons. But appellant took no further steps to seek assistance of the Tribunal to serve the summons on witnesses and to ensure whether these were served, not to speak of any effort made by it to requ
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.