IMPORTANT POINT
The main legal point established is the application of the principle of 'pay and recover' in cases of policy condition breaches and the court's authority to modify the rate of interest for compensation based on relevant judgments.

JUDGMENT

1. The Judgment dated 13.06.2019 passed by the learned Member, Motor Accident Claims Tribunal (MACT), East Khasi Hills, Shillong is under challenge in this instant appeal.

2. Brief facts of the case is that on 17.09.2011 at about 9:00 PM a Motor Vehicle Accident occurred at a place called Pomlahier, Mawryngkneng in the East Khasi Hills District of Meghalaya whereby one Truck bearing registration number AS01-BC-3835 dashed against one pedestrian Banlong Kharsati who received head and multiple injuries and died on the spot.

3. The mother of the deceased, the Respondent No. 1 herein through her daughter Smti. Shandra Kharsati sought for compensation on account of the death of her son, named above from the MACT, Shillong for an amount of Rs.14,30,000/- (Rupees fourteen lakhs and thirty thousand) only against the Owner, Driver and Insurer of the said vehicle in question.

4. It may also be mentioned that as a result of the said Motor Vehicle Accident, the police had registered a criminal case being Madanriting P.S. Case No. 92 (9) of 2011 under Section 279/304 A IPC against the driver of the said truck.

5. On the matter being taken up by the MACT, Shillong, the Insurer/New India Assurance Co. Ltd, the appellant herein as OP No. 1 has entered appearance and filed the written statement. The Owner and Driver duly arrayed as Ops No. 2 and 3 respectively failed to appear in the matter and the learned Member, MACT proceeded exparte against them.

6. The learned Member, MACT then framed three issues, Viz; (i) Whether the Claim petition is maintainable? (ii) Whether the death of the deceased was due to the fault of the truck No. AS01-BC-3835 or the fault of the deceased? and (iii) Who is liable to pay compensation and to what extent?.

7. The Claimant/Respondent No. 1 examined three witnesses as CW. 1, 2 and 3 respectively while the OP No. 1/Appellant has examined two witnesses as DW. 1 and 2 respectively. The matter was finally argued by the parties and on conclusion of the same, the learned Member, MACT, Shillong has awarded compensation of Rs. 3,62,500/- (Rupees Three lakhs, sixty-two thousand and five hundred) only in favour of the Claimant/Appellant. The said compensation was directed to be paid by the Appellant-Insurance Company herein along with 9% interest p.a.

8. Being highly aggrieved at and dissatisfied with the said Judgment and Order dated 13.06.2019, the Appellant/Insurance Company has preferred this appeal inter alia on the ground that the same is not sustainable both under facts and law and is required to be set aside and quashed.

9. Heard Mr. S. Jindal, learned Counsel for the Appellant who has confined his argument on the findings of the learned Member, MACT on issue No. (iii), “Who is liable to pay compensation and to what extent?”. Even on this issue, the learned Counsel has taken exception on the finding of the MACT on the issue of the driving licence of OP/Driver wherein at paragraph 27 of the said Judgment, the learned Member, MACT, on appreciation of the evidence as regard the driving licence of the driver who has produced the same during evidence as Exhibit – B which shows that he was holding a driving licence for driving vehicle in the category of LMV, MGV, HGV, has found the said driving licence valid at the time of the accident, which according to the learned Counsel is not the correct interpretation of the evidence in this regard and as such, has failed to absolved the OP/Insurance Company from its liability on this ground and further that the interest awarded at the rate of 9% pa is well above the prevailing rate of interest entitled to by the Respondent No. 1/Claimant.

10. To buttress his point, Mr. Jindal has led this Court to the evidence of DW-1, Shri H.F. Khongsit who was the District Transport Officer(DTO) at the relevant period, wherein in his deposition, he has stated that “… Driving licence No. ML05 19990014477 was issued from DTO, East Khasi Hills Shillong to Mr. Sylvester Sohtun. It was issued on 02.11.