ORDER

This misc.appeal, under section 173 of Motor Vehicles Act, 1988, has been filed against the award dated 11.03.2016 passed by Additional Motor Accident Claims Tribunal, Betul, District Betul in MACC No.11/2014, by which after exonerating the Insurance Company, the principle of pay and recover has been applied with liberty to the Insurance Company to recover the amount from the Owner and Driver of the vehicle.

By referring to the finding given by the Tribunal, it is submitted that once the Tribunal court had come to a conclusion that the Driver of the offending vehicle was not having valid licence, then should not have saddled with the liability of pay and recover and should have exonerated the Insurance Company in toto.

To buttress his contention, counsel for the appellant has relied upon the judgments passed by the Supreme Court in the cases of Sardari and others Vs. Sushil Kumar and others , reported in (2008) 17 SCC 208 and United India Insurance Co.Ltd. through its Divisional Manager Vs. Sujata Arora and others , reported in 2013 (3) TAC 29 (SC) .

Per contra, the appeal is vehemently opposed by the counsel for the respondent nos.1 and 2. It is submitted that if the Driver was not holding the valid driving licence, then the Claims Tribunal did not commit any mistake in applying the principle of pay and recover and to buttress his contention, the counsel for respondent nos.1 and 2 has relied upon the judgments passed by the Supreme Court in the case of Kusum Lata and others Vs. Satbir and others , reported in (2011) 3 SCC 646 and New India Assurance Co.Shimla Vs. Kamla and others etc. reported in (2001) 4 SCC 342 .

(G.S. AHLUWALIA) Heard the learned counsel for the parties.

The dispute lies in a very narrow compass. The Insurance Company has been exonerated on the ground of breach of insurance policy as the owner of the offending vehicle was not holding the valid driving licence.

Now the only question, which requires consideration is as to whether the Claims Tribunal was right in applying the principle of pay and recover? Breach of insurance policy has nothing to do with the third party. It is an inter se contract between the insured and the insurer. If the insurer is of the view that the insured has violated any condition of licence, then it has a right to recover the compensation amount from the insured.

The Supreme Court in the case of Kamla (supra) , has held that "if the Insurance Company succeeds in establishing that there was a breach of policy condition, the Claims Tribunal shall direct the insured to pay that amount to the insurer. In default, the insurer shall be allowed to recover that amount (which the insurer is directed to pay to the claimants- third parties) from the insured person."

Since the Insurance Company has been exonerated but has been saddled with the liability to pay in its turn to recover the same from the insured, this Court is of the considered opinion that no interference is warranted.

Accordingly, the award dated 11.03.2016 passed by Additional Motor Accident Claims Tribunal, Betul, District Betul in MACC No.11/2014 is hereby affirmed.

The appeal fails and is hereby dismissed.

JUDGE TG /-