IMPORTANT POINT
When the owner-cum-driver does not have a valid licence, court would be justified in directing the insurer to pay the compensation amount and recover the same from the owner-cum-driver.

JUDGMENT

Dr. D.Y. CHANDRACHUD, J

1. Delay condoned.

2. In a claim for compensation under Section 166 of the Motor Vehicles Act 1988, the Motor Accident Claims Tribunal (‘the Tribunal’), Yamunanagar at Jagadhri found that the insured did not hold a valid driving licence at the time of the accident. The Tribunal absolved the insurer for that reason. The insurer was, however, directed to pay the compensation awarded to the claimant and to recover it from the owner of the offending motor cycle. The High Court dealt with three appeals: one filed by the claimant seeking enhancement of compensation, a second by the insurance company and the third by the owner cum driver of the offending vehicle. The High Court held that in view of the decision of this Court in National Insurance Co. Ltd. v Swaran Singh, (2004) 3 SCC 297 the Tribunal was correct in directing the insurer to pay the compensation and to recover it from the owner-cum-driver of the offending vehicle. The present appeal has been filed by the owner and driver. The only point which has been urged in support of the appeal is that the Tribunal and the High Court erred in fastening the liability on him by granting a right of recovery to the insurer.

3. The accident took place on 22 March 2010. The deceased Sunil Kumar was riding a motor cycle bearing Registration No HR-04B-4673. The Tribunal found that the accident was caused as a result of the rash and negligent act of the appellant. This finding of fact has not been disturbed by the High Court. The deceased was employed as a sweeper in Haryana Roadways and was engaged on a salary of Rs 11,928 per month. The Tribunal allowed future prospects of 50%, the deceased being just short of 36 years of age. After deducting an amount representing one-fourth of the earnings for personal expenses, the Tribunal applied a multiplier of 15. The total compensation was computed at Rs 24,15,420 to which the Tribunal added an amount of Rs 20,000 under conventional heads. However, the Tribunal held that the financial assistance which the heirs of the deceased would receive over a period of 12 years from the employee (amounting to Rs 16,16,112) would have to be deducted from the compensation. After making the deduction, the Tribunal awarded an amount of Rs. 8,19,500 together with interest at 7.5 per cent per annum from the date of the claim petition. The High Court has enhanced the compensation to Rs 16,04,912.

4. Special Leave Petition (C ) No 7737 of 2015 filed by the claimant, which was connected to this appeal, has been dismissed on 8 February 2018.

5. In the present appeal by the owner cum driver of the offending motor cycle, the submission is that in view of the decision of a Bench of three learned Judges of this Court in Swaran Singh (supra), the insurer ought not to have been absolved. Hence the direction to the insurer to pay and recover the compensation from the appellant should, it has been urged, be modified to fasten a joint and several liability on the insurer.

6. Before we advert to the decision in Swaran Singh (supra) a brief reference to the facts as they emerge from the decision of the Tribunal is necessary. Initially before the Tribunal the appellant produced a driving licence issued by the Motor Vehicles Department, Agra (Exh.R-1). The driving licence was found to be fake. The statement of the Senior Assistant in the office of the RTO, Agra was that Exh.R-1 had not been issued by the office. The Tribunal noted that the witness had proved the report (Exh.R-2) issued by the department and concluded that the licence was fake. Faced with this situation, the appellant attempted to prove that he held a valid driving licence issued by the licencing authority at Jagadhri to drive a motor cycle. The Tribunal rejected the application filed by the appellant for producing additional evidence. The Tribunal noted that even otherwise, the licence which was issued by the licencing authority, Jagadhri for a tractor and car was valid only until 2