The insurance company is liable to pay compensation and can recover the same from the owner and driver of the offending vehicle.

ORDER :

This miscellaneous appeal has been preferred by the appellants under section 173(1) of the Motor Vehicles Act against the award dated 02.07.2022 passed in Claim Case No.57/2020 by MACT, Jhabua whereby application filed under section 166 of the Motor Vehicles Act for compensation has been allowed and an award of Rs.10,78,000/- has passed in favour of the appellants and directed the driver and owner of the offending vehicle to pay the compensation while exonerating the respondent No.3/Insurance Company.

2. Brief facts of the case is that on 13.01.2020 deceased Ansingh was going to his village Bhoyra on his motorcycle no.MP-45-MJ-8997 after purchasing vegetables from Jhabua. When he reached near culvert situated between village Naldi and Bhoyra he was dashed by vehicle no.MP 41 P 0467 coming from the direction of Pitol and was driven by non applicant no.1 rashly and negligently. Ansingh sustained grievous injuries and he was taken to district hospital Jhabua from where he was carried to Dahod after primary treatment. In Dahod he was first taken to Saifi hospital but for better treatment he was taken to Avdhut hospital Baroda. During treatment he succumbed to injuries and expired on 14.01.2020.

3. Claimants filed this claim petition for compensation against the respondents for a sum of Rs.55 lakhs 86 thousnad with interest.

4. Respondents No.1 & 2 were ex-parte before the Tribunal and did not file written statement.

5. On the other hand, respondent No.3 filed written statement and denied all the averments pleaded in the pleadings and submitted that owner and driver of the offending vehicle breached terms and conditions of the insurance policy and vehicle was driven without permit in contravention of the insurance policy so insurance company is not liable to pay compensation.

6. The Tribunal framed issues and taking evidence passed the impugned award in favour of the claimants and exonerated the insurance company because owner and driver drove the vehicle without permit.

7. Being aggrieved by the inadequate compensation, present appeal has been preferred by the appellant and submitted that quantum of compensation awarded by the Tribunal is on the lower side, hence deserves enhancement.

8. Learned counsel for the appellants submitted that Tribunal has committed error in exonerating insurance company on the ground that offending vehicle was not having valid permit. It is submitted that the aforesaid finding recorded by the Tribunal is contrary to the decision rendered by the Apex Court in the case of National Insurance Co. Ltd. vs. Challa Bharathamma and others reported in AIR 2004 SC 4882 wherein the apex Court has held that in a case where the vehicle is plied without valid permit, the insurance company can be exonerated. However, the principal liability to pay the compensation shall be of the insurance company which can be recovered by the same from the owner and driver of the vehicle. Thus, it is submitted that aforesaid finding be set aside.

9. On the other hand, counsel for the insurance company submitted that Tribunal has rightly exonerated the insurance company and prayed for rejection of the appeal.

10. Heard learned counsel for the parties and perused the record of the Tribunal.

11. Learned counsel for the respondents has filed a citation in the case of Shravankumar and others vs. Deepakkumar & others in MA No.1097/2008 decided on 11.04.2023 passed by coordinate bench of this Court in which it was held that when insurance company has proved that driver of the offending vehicle has no driving license, Tribunal has rightly exonerated the insurance company from the liability to pay compensation. He has further cited Beli Ram vs. Rajinder Kumar and another - AIR 2020 SC 4453 and Ram Sujan Tiwar vs. Sita Gupta and others - 2009 ACJ 437 of this Court and submitted that Tribunal has rightly exonerated insurance company considerin