United India Insurance Company Limited vs Prem Lata and Others

Uma Nath Singh, J.—This F.A.O. arises out of an award dated 11.9.2006 passed by learned Presiding Officer, Motor Accident Claims Tribunal (hereinafter referred to as ''the Tribunal''), Kurukshetra, in M.A.C.T. Case No. 85 dated 12.5.2005 awarding a sum of Rs. 4,82,400 (Rupees four lakh eighty-two thousand and four hundred) with 7.5 per cent interest per annum from the date of institution of the application in a death case of Om Prakash, said to be 40 years old at the time of accident.

I appears that on the date of accident, the deceased was employed as a Chowkidar in Hafed Godown at village Bhaini. The offending vehicle being a Tractor bearing registration No. HR-07-B-2792 while being driven rashly and negligently struck against him when it was entering into the main gate. He was caught into between the main gate and the tractor and was rescued with great difficulty having suffered multiple serious injuries. In the process, the deceased was lodged in hospital for about 6 days and he died of injuries in the P.G.I. Chandigarh, on 23.3.3005. Admittedly, the application of the Insurance Company to contest the case on merits, was dismissed. Moreover, the company has been granted recovery right. Despite this background, the learned Counsel for the appellant-Insurance Company made an endeavour to persuade us by arguing on merits which would not be permissible in the absence of a permission as such u/s 170 of the Motor Vehicles Act. Learned Counsel for the Insurance Company has assailed the Award on the quantum of compensation being higher, and also for the breach of the conditions of policy. Needless to say that in terms of the ratio of the judgment of Hon''ble Apex Court in the case of National Insurance Co. Ltd. Vs. Swaran Singh and Others, , even in the absence of a valid driving licence of the driver of the offending vehicle, the Insurance Company would be liable towards the third party, and may be granted permission to recover the amount from the owner and the driver of the vehicle. In the instant case, in line with the said ratio, the company has been granted recovery right because the driver has been found to be holding a fake driving licence at the time of accident.

Thus, in view of the aforesaid discussion, and in terms of the ratio of the judgment of the Hon''ble Apex Court in the above mentioned case which do not support the plea of the Insurance Company, the appeal is dismissed in limine.