Court No. - 26
Case :- FIRST APPEAL FROM ORDER No. - 34 of 2011
Appellant :- Shri Ram General Insurance Co. Ltd.
Respondent :- Niyaz Ahmad & Another
Counsel for Appellant :- Rahul Sahai
Counsel for Respondent :- Uday Shankar Tiwari
Hon'ble Saral Srivastava,J.
Heard learned counsel for the appellant and learned counsel for the respondent-owner.
The appellant-insurance company has come up in this appeal against the judgement and award dated 1.10.2010 passed by the Motor Accident Claims Tribunal/Additional District Judge Court No. 19, Allahabad whereby, Tribunal has awarded total compensation of Rs.2,69,800/- to the claimants.
The Tribunal while deciding the issue no.3 in respect of validity of driving licence of driver of the offending vehicle namely, Vikram No. U.P.-70-BT-2281 has held that the driving licence of the driver of the offending vehicle was not valid on the date of the alleged accident. Consequently, the Tribunal was right in recording the finding on issue no.3 against the driver and in favour of insurance company and permitted the insurance company to recover the awarded amount from the owner after satisfying the award.
Learned counsel for the appellant contends that once the Tribunal has recorded a finding that vehicle was driven by the person not holding a valid driving licence, insurance company has no liability to pay the compensation and as such direction of the Tribunal to the insurance company to pay the awarded amount and recover it from the owner is not sustainable in law.
The said contention of learned counsel for the appellant is misconceived in view of the judgement of of Apex Court in the case of National Insurance Company Ltd. Vs. Swaran Singh & Others, AIR 2004 SC 1531, wherein Apex Court has held that in case breach of terms and conditions of policy, the insurance company should pay the award and thereafter recover it from the owner of the vehicle.
Thus, the direction of the Tribunal to the insurance company to pay the awarded amount and thereafter recover it from the owner is consonance with the judgment of the Apex Court in the case of Swarna Singh (Supra).
Thus, for the reasons given above, the appeal lacks merit and is accordingly, dismissed. There shall be no order as to cost.
Order Date :- 30.11.2018 Sattyarth