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2024 Supreme(Online)(MP) 6066
HIGH COURT OF MADHYA PRADESH
ACHAL KUMAR PALIWAL, J
GOVINDI KUSHWAHA S/O GYA PRASAD KUSHWAHA – Appellant
Versus
SMT. RANU SONI W/O LATE SHRICHAND SONI – Respondent
MISC. APPEAL No. 1925 of 2022 | MISC. APPEAL No. 1927 of 2022
For the Appellants/Petitioners: SOURABH SINGH THAKUR
For the Respondents: RAKESH KUMAR JAIN, DINESH PATEL
Absence of a fitness certificate at the time of the accident constitutes a fundamental breach of insurance policy terms, exonerating the Insurance Company from liability.
Headnote:(A) Motor Vehicles Act, 1988 - Sections 39, 56, 140, 192, and 147 - Liability of Insurance Company - The court considered the absence of a fitness certificate at the time of the accident as a fundamental breach of the insurance policy's terms, clarifying that such absence exonerates the Insurance Company from liability. (Paras 10, 15, 17)
(B) Insurance Policy - Statutory Requirement - The court emphasized that the requirements of law regarding vehicle fitness and registration cannot be overridden by policy terms, affirming that insurance coverage is contingent upon compliance with statutory provisions. (Paras 10, 12, 14)
Facts of the case:
The appeals were filed by the owner and driver of the offending vehicle to modify the tribunal's award, which exonerated the Insurance Company from liability due to lack of fitness certificate. The accident occurred on 03.05.2018, and fitness certificates were only valid after the accident date.
Findings of Court:
The appeals were dismissed, affirming that absent a fitness certificate, the Insurance Company is not liable for compensation, adhering to the principles established in previous rulings.
Issues: Whether the absence of a valid fitness certificate constitutes a breach of insurance policy terms, and if the insurance company can be held liable under such circumstances.
Ratio Decidendi: The court held that the absence of a fitness certificate fundamentally breaches statutory requirements for vehicle operation, thereby exonerating the Insurance Company from compensatory liability under relevant sections of the Motor Vehicles Act, 1988.
Result: Appeals dismissed.
| Table of Content |
|---|
| 1. appellants challenge insurance liability based on vehicle fitness. (Para 1 , 2 , 3) |
| 2. counsel debate fitness certificate requirements and policy terms. (Para 4 , 5) |
| 3. court evaluates evidence regarding vehicle fitness at accident time. (Para 6 , 7 , 8) |
| 4. court establishes absence of a fitness certificate impacts insurance liability. (Para 10) |
| 5. appeals dismissed based on established legal principles. (Para 14) |
ORDER
With the consent of learned counsel for the parties, heard finally at motion stage.
2. This common order shall govern disposal of Misc. Appeal No.1925 of 2022 of 2020 (Govind Kushwaha and Others Vs. Smt.Chhama Soni and Others) and Misc. Appeal No.1927 of 2022 (Govind Kushwaha and Others Vs. Smt.Renu Soni and Others) arising out of common award dated 03.02.2022 relating to MACC No.164/2018 and 165/2018.
3. Both these appeals have been filed by on behalf of Owner and driver of offending vehicle seeking modification of impugned award, so far as it relates to liability to pay compensation whereby Insurance Company has been exonerated from liability to pay the compensation.
4. Learned counsel on behalf of owner/driver of offending vehicle, after referring to para 9 and 10 of non-applicant No.3’s witness Anurag Kumar and terms and conditions of insurance policy, submit that in insurance policy there is no condition with respect to fitness of vehicle. Further, it is also urged that incident occurred on 03.05.2018 and there was fitness certificate from 5.6.2018 to 4.6.2019 and prior to accident there was also fitness certificate for the period 3.2.2017 to 2.2.2018. Therefore, it will be presumed that on the date of accident, offending vehicle was fit for being plied on the road. On above grounds, it is urged that tribunal has erred in exonerating insurance company from liability to pay compensation. With respect to above submission, learned counsel for the appellant has relied upon Union India Insurance Company Ltd. Vs. Vishakantegowda and Others , 2020 SCC Online Kar 2960. On above grounds, it is urged that appeals filed by the appellants be allowed and Insurance company be also made liable to pay the compensation jointly and severely.
5. Learned counsel for respondent/Insurance company after referring to Sections 39 and 56 of Motor Vehicle Act, 1988 as well as relying on MA No.1432 of 2016 ( The Oriental Insurance Company Ltd. Vs. Smt.Asha and Others ) dated 27.06.2023, submit that as there was no valid fitness certificate on the date of accident, therefore, offending vehicle would not be deemed to be registered on the date of accident. On above grounds, it is also urged that tribunal has rightly exonerated insurance company from liability to pay the compensation. On above grounds, it is urged that appeals filed by the appellants be dismissed.
6. I have heard learned counsel for the parties and perused the record of the case.
7. It is correct that in the instant case, accident occurred on 03.5.2018. From Ex.D/4, D/5, D/6 and D/7, it is evident that there was fitness certificate for the period from 5.6.2018 to 4.6.2019. Learned counsel for the appellants has also submitted that there was valid fitness for a period from 3.2.2017 to 2.2.2018. It also urged that in view of above, it would be presumed that on the date of accident, offending vehicle was fit for being plied on the road. It is correct that in insurance policy Ex.NA/2 condition with respect to valid fitness is not specifically mentioned.
8. Therefore, question arises as to whether absence of valid fitness on the date of accident constitute breach of terms and conditions of insurance policy. Coordinate Bench of this Court in United India Insurance Company Ltd. Vs. Vinod and Others , (2020) 1 MPLJ 142 , has dealt with above issue in details which is as under :
"5. Section 39 of the Motor Vehicles Act , 1988 provides for registration of the vehicle and Section 56 of the Motor Vehicles Act , 1988 provides for fitness certificate.
6. Sections 39 and 56 of Mo
