Supreme CourtDivision Bench(2004) 09 SC CK 0013

Mahamooda and Others vs United India Insurance Company Ltd. and Others

Supreme Court Of India · Decided on 20 September 2004 · Citation: (2004) 13 SCC 684

HON’BLE JUDGES
C.K. Thakker, J · Arijit Pasayat, J
RESULT
Allowed
CASE NUMBER
Civil Appeal No. 6209 of 2004 (Arising out of SLP (C) No. 6934 of 2004)

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Judgment

6 paragraphs · 362 words
1.

Leave granted.

2.

Heard Learned Counsel for the parties.

3.

Delay condoned.

4.

We find that the High Court relied on a decision of this Court in New Indian Assurance Co. Ltd. Vs. Mandar Madhav Tambe and others, The issue related to the liability of an insurer when the offending vehicle is driven by a person holding a learner's licence. The High Court held that in view of the decision in Madhav Tamble case, the Insurance Company has no liability, though the Motor Accidents Claims Tribunal, herein referred to as "the Tribunal" had fixed the liability on the Insurance Company. Correctness of the decision in Madhav Tamble case (supra) came to be considered in National Insurance Co. Ltd. Vs. Swaran Singh and Others, . It was held that Madhav Tamble case (supra) was decided on the peculiar facts of the case without taking note of the binding precedents. It was categorically held that even when the offending vehicle was driven by a person holding a learner's licence, the insurer's liability existed. This position has been clarified in paras 93 and 94 of the judgment.

5.

It appears that the awarded amount with interest was deposited in the High Court. There is no clear indication as to whether the Insurance Company withdrew the amount after the judgment of the High Court. In-view of the fact that Mandar Madhav case (supra) on which reliance was placed by the High Court has been distinguished in the subsequent decision in Swaran Singh case (supra) the claimants shall be entitled to the amount which was originally deposited by the Insurance Company. They shall not be entitled to any interest for the subsequent period, in view of the fact that there was considerable delay in approaching this Court. The appeal is accordingly disposed of. We have condoned the delay in this appeal considering the peculiar facts and circumstances of the case. In case the Insurance Company has withdrawn the amount which was deposited in the High Court earlier, the same shall be deposited within four weeks with the Tribunal so that claimants can withdraw it.

6.

The appeal is accordingly allowed to the extent indicated. No costs.