Court No. - 26
Case :- FIRST APPEAL FROM ORDER No. - 359 of 2012 Appellant :- The New India Assurance Co. Ltd.
Respondent :- Raja And Another Counsel for Appellant :- P.K. Sinha Counsel for Respondent :- Narendra Shanker
Hon'ble Saral Srivastava,J.
The appellant Insurance Company has preferred the present appeal challenging the award dated 30.11.2011 passed by the Motor Accident Claim Tribunal/Additional District Judge, Court No.10, Allahabad, whereby the Tribunal has awarded Rs.97,329/- alongwith 6% interest as compensation to the claimant respondent for the injuries suffered by the claimant respondent in an accident on 21.09.2008.
Learned counsel for the appellant has contended that once the Tribunal has held that the driver of the tractor no.UP 70 AC/5406 was not holding driving license at the time of accident and the owner of the tractor has committed breach of insurance policy, the Tribunal has acted illegally in directing the Insurance Company to pay the awarded amount and thereafter recover it from the owner.
Per contra, learned counsel for the respondents submits that the Apex Court in the case of National Insurance Company Ltd. Vs. Swaran Singh & Others, AIR 2004 SC 1531 has held that where there is breach of insurance policy by the owner of the vehicle, third party should not suffer and, therefore, the Tribunal in such cases should direct the Insurance Company to pay the awarded amount and thereafter, recover it from the owner. Submission is that the direction of the Tribunal is in consonance with the judgement of the Apex Court in Swaran Singh (supra).
I have considered the rival submission of the parties and perused the record.
The Apex Court in Swaran Singh (supra) has held that third party should not suffer for breach of policy committed by the owner and the Tribunal should direct the Insurance Company to pay the awarded amount of compensation and thereafter recover it from the owner.
Thus, the direction of the Tribunal in the instant case to the Insurance Company to pay the awarded amount of compensation and thereafter recover it from the owner is in consonance with the judgement of the Apex Court in Swaran Singh (supra). Thus, the contention of the learned counsel for the appellant is misconceived and is rejected.
For the reasons given above, the appeal lacks merit and is dismissed.
Order Date :- 19.12.2018 S.Sharma