SURESH KUMAR AND SAJITH K.C. @ GIREESH Vs. JEENA SEBASTIAN AND RELIANCE GENERAL INSURANCE COMPANY LIMITED

JUDGEMENT

(1.) THESE four appeals are filed by the owner and driver in a motor accident claim against the common award passed by the Tribunal in four O.P. (M.V.) Nos. 195, 196, 205 and 245 of 2010 arising from the same accident. The Motor Accidents Claims Tribunal, Pala, found that the accident occurred because of the negligence of the driver of the vehicle and awarded compensation to the claimants. The insurance company was directed to satisfy the award with a right to recover the same from the owner and driver on the ground that the driver did not have a valid licence and badge at the time of the accident, insofar as it was a transport vehicle. The appellants are challenging the right given by the Tribunal to the insurance company to recover the compensation amount paid by them to the claimants, from the appellants. The contention of the appellants is that, if at all there is a violation of the policy condition in the driver not having a valid licence or badge, that is purely technical in nature and therefore the insurance company cannot be absolved from the liability to indemnify the insured. We are of opinion that that issue is squarely covered by the decision of the Supreme Court in S. Iyyappan v. United India Insurance Co. Ltd., : 2013 (3) KLJ 306, wherein after holding that the insurer is liable to pay the compensation amount to the claimants, it was held that it is for the insurer to proceed against the insured for recovery of the amount awarded in case there is any violation of the policy conditions. The learned counsel for the appellants would contend that this decision does not deal with the specific issue insofar as the issue is covered by the decision by the larger Bench of the Supreme Court in National Insurance Co. Ltd. v. Swaran Singh, : (2004) 3 SCC 297. We are of opinion that the Supreme Court has rendered the judgment in Iyyappan's case (supra) after considering the decision in Swaran Singh's case (supra) also. Not only that, several other Supreme Court decisions on the very same point were also considered therein. That being so,, the judgment of the Supreme Court in Iyyappan's case (supra) is binding on us. That decision gives liberty to the insurer to recover the amount paid by them to the claimants in cases where there is violation of policy conditions including want of valid licence and badge. The policy in this case admittedly contains a clause that the driver should have a valid licence, which includes a badge as well in the case of a transport vehicle. Admittedly, the driver did not have a valid badge and his licence had already expired. In the above circumstances, we do not find any merit in these appeals and accordingly the same are dismissed.