OIC LTD. Vs. SHANTI & ORS.

JUDGEMENT

(1.) THE Appellant Insurance Company impugns a judgment dated 12.05.2009 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby while awarding a compensation of Rs.3,95,000/ - for the death of Bhagat Singh, a 16 year old school going boy, the Appellant's plea that the owner Chhotey Lal (the Third Respondent) committed breach of the terms of the policy as the driver Ram Saran (the Second Respondent) did not possess a valid and effective driving licence on the date of the accident, was rejected by the Claims Tribunal. It is urged by the learned counsel for the Appellant that a report under Section 173 Cr.P.C. was filed against Respondent Ram Saran for an offence punishable under Sections 279/304A IPC. Along with the said offence, the Second Respondent was also prosecuted for an offence under Section 3 read with Section 181 of the Motor Vehicles Act, 1988 (the Act) as he did not possess a valid driving licence on the date of the accident.

(2.) IT is contended that the Appellant served a notice under Order XII Rule 8 CPC Ex.R3W -1/B (Postal Receipt Ex. R3W -1/C) upon the owner to produce the driving licence of the driver. The driver did not prefer to contest the proceedings before the Claims Tribunal and was ordered to be proceeded ex -parte. The Third Respondent (the owner of the vehicle) kept stoic silence on the notice Ex. R3W -1/B. The Appellant Insurance Company did whatever was in its power to prove that the driver did not possess a valid driving licence. Thus, it was established on record that the Third Respondent committed willful breach of the terms of the policy and thus, the Appellant Insurance Company was entitled to recover the compensation paid to the First Respondent (the Claimant).

(3.) THE case is squarely covered by the judgment of this Court in New India Assurance Company Ltd. & Ors. v. Sanjay Kumar & Ors., ILR 2007(II) Delhi 733 where this Court held as under: -