Insurance companies are not liable if vehicles are operated without valid permits as mandated under the Motor Vehicles Act.

1. Heard the learned counsel for the parties.

2. The only surviving issue before this court is, “whether the insurance company can avoid its liability vis - a - vis owner of the offending vehicle, i.e., right to recovery may be granted to the appellant insurance company or not?”

3. Brief facts as appear from the pleading and argument of the parties are that an accident has taken place with the tractor bearing registration No. JH - 09R - 3924 and ten years old child has died on 25.9.2014.

4. The claim petition has been filed and after considering the evidence brought on record, the claim amount has been determined as Rs. 3,25,000 with interest at 7 per cent per annum which has already been released and paid in favour of the claimant. Now, the only issue has been raised regarding the liability vis - a - vis owner of the vehicle and the insurance company.

5. It has been submitted by learned counsel for the insurance company that the vehicle in question having a gross vehicle weight 7,000 kg which is evident from the insurance policy itself and as such there was requirement of valid permit as per S.66 (3) (i) of the Motor Vehicles Act, 1988 .

6. By referring to the lower court records submission has been advanced by the learned counsel for the insurance company that specific plea has been taken by the insurance company that the vehicle was being run without the valid permit and in spite of specific pleading, the issue has not been framed.

7. It has been further submitted that considering the said argument, this Hon'ble court has asked the owner of the offending vehicle to produce the entire documents relating to the offending vehicle. There are several orders, One of the orders is dated 25.8.2021 which is quoted hereinbelow:

“Learned counsel for the respondent No. 3, Mr. Brij Bihari Sinha, has submitted that driving licence has already been filed in compliance of order dated 28.1.2020 by serving copy of the same upon counsel for the appellant on 28.2.2020. However, he was unaware that this court has directed the owner to file all relevant documents of the offending vehicle as well as licence of the driver, driving the vehicle at the time of accident, as such, he has submitted that by way of last chance four weeks' time may be granted to file the said documents.

Learned counsel for the appellant, Mr. Alok Lal, has submitted that entire awarded amount has already been satisfied to the claimants by depositing the same before the executing court, as no relief has been sought for against the claimants. However, if appeal is allowed the right of recovery may be granted to the appellant insurance company against owner of the offending vehicle.

Considering the same, by way of last chance four weeks' time is granted to the respondent No. 3 to bring all necessary documents with regard to the offending vehicle with respect to the date of alleged occurrence, failing which it shall be presumed that owner has no document in support of his contention.

Put up this case after four weeks.”

8. It has been further submitted that since the permit is the requirement of law and as per the insurance policy, if the vehicle in question was being plied without valid permit, the insurance company is not under obligation to indemnify the owner of the offending vehicle rather he has a right to recover the awarded amount from the owner of the offending vehicle.

9. On the other hand, learned counsel for the offending vehicle has submitted that the certificate of registration suggests that the gross vehicle weight was only 1,600 kg and as such, no permit is required. Since no permit is required, the entire argument of the insurance company is fallacious and cannot be considered. I