NEW INDIA ASSURANCE COMPANYLTD Vs. JANARDAN MISHRA

JUDGEMENT

(1.) THE respondent son had died in an accident and accordingly, he moved an application for compensation under the Motor Vehicles Act. During the pendency of the proceedings the matter was taken up by Lok Adalat and the Court passed an order dated 29 -3 -1987 stating therein that the parties agreed that the compensation would be fixed at Rs. 17,000 and that this amount would be paid to the plaintiff only when the owner of the vehicle files a valid driving licence to the satisfaction of the counsel for the Insurance Company. The Court directed that the compensation amount would be paid within one month from the date of filing of the licence and in case the licence was not filed, the claim against the Company would be dismissed.

(2.) IT transpires that the owner of the vehicle and the Insurance Company connived with each other and on the pretext that the driving licence was not filed by the owner, the Insurance Company did not pay the compensation amount to the claimant. Accordingly, the claimant filed an application before the executing Court, stating therein that inspite of the order he has not been paid the compensation, and therefore, the Insurance Company be directed to pay the compensation. By the impugned order dated 11 - 2 -1998, the executing Court rejected the objection of the Insurance Company and directed the Insurance Company to pay the compensation within two months. This impugned order dated 11 -2 - 1988 has been challenged by the Insurance Company in the present civil revision.

(3.) THE learned counsel for the applicant submitted that the Insurance Company is only liable to pay the compensation, provided, the driver of the vehicle had a valid driving licence. Since the owner of the vehicle did not produce the driving licence, the Insurance Company was not liable to pay the compensation as per the compromise.