NATIONAL INSURANCE COMPANY LIMITED Vs. P.MALA

JUDGEMENT

(1.) This Civil Miscellaneous Appeal is filed against the Judgement and Decree dated 12.7.2007 made in MCOP.No.4480/2007 by the learned III Judge, Small Causes Court (MACT) Chennai, whereby the Tribunal awarded a sum of Rs.6,57,168/- as total compensation with interest at 7.5 per cent p.a. from the date of the claim petition till the date of realization to the claimants/the Respondents 1 to 4 herein, who are the wife, son, daughter and mother of the deceased Paranthaman, who died in the motor accident that had occurred on 4.2.1999.

(2.) Though the Tribunal exonerated the Insurance Company from its liability on the ground that the driver of the lorry had no valid licence to drive the lorry, but however directed the Insurance Company to pay the compensation to the claimants and then, recover the same from the owner of the offending vehicle.

(3.) The only contention raised by Mr.K.S.Narasimhan, the learned counsel for the Appellant Insurance Company is that the Tribunal erred in directing the Insurance Company to pay the award amount to the claimants firstly and thereafter, to recover the same from the owner of the offending vehicle. According to the learned counsel, the Tribunal ought not to have given such a direction. Moreover, once it is held that that there is breach of policy, the Insurance Company cannot be held liable to make the payment.