NEW INDIA ASSURANCE CO LTD Vs. BAINY SINGH

JUDGEMENT

(1.) SERVICE of Respondent No.1(a) and 1(b) is dispensed with for the reasons as stated in the application. The Application stands disposed of. The Appellant New India Assurance Company Limited impugns a judgment dated 04.08.2010 whereby while awarding a compensation of Rs.4,18,480/- and upholding the Appellant's plea that the driving licence held by Shanker (Respondent No.3) was fake, instead of totally exonerating the Appellant, it made it liable to pay the compensation with a right to recover the same from the driver and the owner of the offending vehicle.

(2.) THE case is squarely covered by the judgment of this Court in NEW INDIA ASSURANCE COMPANY LTD. v. HARJIT SINGH & ORS, MAC APP.717/2010 decided on 26.04.2012. Para 6 to 9 & 11 of the report are extracted hereunder:- 6. The issue is no longer res integra that even in a case where the insurance company establishes a conscious breach of the terms of the insurance policy, the liability of the insurer to satisfy the decree vis-a-vis third party is statutory. 7. There is an authoritative pronouncement of the Supreme Court in National Insurance Company Limited v. Swaran Singh, 2004 (3) SCC 297 paras 73, 104 and 105 are extracted hereunder :-

(3.) THE Appeal is disposed of in above terms. The statutory amount of Rs.25,000/- shall be refunded to the