NATIONAL INSURANCE CO LTD Vs. GOP NATH SINGH

JUDGEMENT

(1.) THESE four Appeals MAC APP. 363/2008, MAC APP.364/2008, MAC APP.365/2008 and MAC APP.370/2008 arise out of a common judgment dated 27.3.2008 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby while awarding compensation in favour of the Respondents (the Claimants), the Claims Tribunal held that the owner was guilty of breach of the terms of policy. The Appellant was granted recovery rights in respect of the amount paid against the owner of the vehicle.

(2.) A short submission raised by the learned counsel for the Appellant is that the driver of the TSR involved in the accident possessed a driving licence to drive LMV (Non-Transport) and a motorcycle. Since, he was not competent to drive the offending vehicle, the Insurance Company ought to have been exonerated instead of being granted recovery rights.

(3.) THE three Judge Bench of the Supreme Court in National Insurance Company Limited v. Swaran Singh & Ors., (2004) 3 SCC 297 again emphasized that the liability of the insurer to satisfy the decree passed in favour of the third party was statutory. It approved the decision in Sohan Lal Passi (supra), Kamla (supra) and Lehru (supra). Paras 73 and 105 of the report are extracted hereunder: