REGENT COMPUTRONICS PVT. LTD.

ORIENTAL INSURANCE CO. LTD. Appellant

V/S

RAKESH KUMAR Respondents

Referred Judgements :-

JUDGEMENT

(1.) IN these Appeals a common question of law falls for consideration i.e. whether in case of a willful or intentional breach of the terms of the policy by the Insured in terms of Section 149 (2) (a) (ii) of the Motor Vehicles Act (the Act), would the Insurer still be liable to satisfy the award of compensation in favour of third parties and avail the right to recover the same from the Insured or whether Insurer would not be so liable, leaving the third party to enforce the award against the Insured/owner and driver of the offending vehicle?

(2.) IT is urged by the learned counsel for the Insurers (the Insurance Companies) that once a willful breach is established, the Insurer can avoid the liability to pay even to third parties. In support of their argument, reliance is placed on Malla Prakasarao v. Malla Janaki & Ors.(2004) 3 SCC 343, National Insurance Company Limited v. Kusum Rai & Ors., (2006) 4 SCC 250; National Insurance Company Limited v. Vidhyadhar Mahariwala & Ors., (2008) 12 SCC 701; Ishwar Chandra & Ors. v. The Oriental Insurance Company Limited & Ors., (2007) 10 SCC 650; and Premkumari & Ors. v. Prahalad Dev & Ors., (2008) 3 SCC 193.

(3.) Before I advert to the facts of each case, I shall try to analysize the law on the subject as there appears to be a conflict in some of the decisions of the Supreme Court. Section 146 of the Act prohibits any person from using or allowing another person from using any motor vehicle in a public place unless there is in force, in relation to the use of the vehicle by that person or that other person, a policy of insurance complying with the requirements of Chapter XI.

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ORIENTAL INSURANCE CO. LTD. Vs. RAKESH KUMAR

Referred Judgements :-

JUDGEMENT

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