NEW INDIA ASSURANCE CO LTD Vs. SABIRAN

JUDGEMENT

(1.) THE sole contention of Mr. Pankaj Seth, the learned counsel for the appellants in the present appeal is that in view of the fact that the learned Motor Accident Claims Tribunal by its judgment and award dated 5th September, 2002 arrived at the finding that the respondent No.1 was not having a driving licence to drive a commercial vehicle, the appellant Insurance Company should have been exonerated of its liability to pay compensation to the respondents No.1 to 7/claimants. Instead the Insurance Company has been directed to pay the award amount within a period 30 days from the date of the passing of the award with liberty to recover the said amount from the respondent No.9 insured.

(2.) THE aforesaid issue arising in the present appeal, which was filed on 28.10.2002, is now covered by a decision of a three-Judge Bench of the Hon'ble Supreme Court in the case of `National Insurance Company Limited versus Swaran Singh and Others (2004) 3 SCC 297, wherein it has been held that even in cases where the driver of the offending vehicle is not in possession of a valid and effective driving licence at the time of the accident, the Insurance Company must pay to the claimants the award amount and can recover the same from the insured. THE relevant portion of the judgment is quoted below:-