DELHI TRANSPORT CORPORATION Vs. SHOBHA RANI

JUDGEMENT

(1.) The Appellant Delhi Transport Corporation impugns a judgment dated 03.10.2008 whereby while awarding a compensation of ' 5,46,508/- in favour of the Respondents No.1 to 4, the Claims Tribunal granted recovery rights to the National Insurance Co. Ltd. (the Third Respondent) on the ground that Yashpal Malik, the driver of the offending bus was holding a fake licence Ex.R1W1/2.

(2.) It is well settled that the insurer is under obligation to prove that the insured committed willful breach of the condition of policy by failing to exercise reasonable care or was negligent in entrusting the vehicle to a driver who possessed a fake licence. If the insured bonafidely believed the licence to be genuine, the insurer would not be allowed to avoid its duty to indemnify the insured.

(3.) In the instant case, the accident took place on 31.10.2004. The Claim Petition was filed by the Respondents No.1 to 4 on 23.12.2004. The Appellant and its driver (who were the Respondents No.1 & 2 before the Claims Tribunal) filed a joint written statement on 22.07.2005 admitting the accident but denying the negligence. They took the plea that Yashpal Malik (the First Respondent before the Claims Tribunal) possessed a valid driving licence at the time of the accident.