CHOLAMANDALAM MS GENERAL INS. Vs. MUNNI BAI

JUDGEMENT

(1.) This Miscellaneous Appeal, under Sec. 173 of the Motor Vehicles Act, (for brevity "the Act") has been filed against Award dtd. 2/5/2024 passed by Member, Motor Accident Claims Tribunal, Guna (M.P.) in M.A.C.C. No.140/2023.

(2.) A solitary ground was raised by counsel for the Insurance Company that although the Insurance Company has been exonerated on the ground that the offending vehicle was being driven in violation of the terms and conditions of the insurance policy as the driver of the vehicle was not having valid and effective licence, but the Claims Tribunal has applied the principle of pay and recover. It is submitted that the principle of pay and recover came into force for the first time after the judgment was passed by the Supreme Court in the case of National Insurance Company Limited versus Swaran Singh and others reported in 2004 ACJ 1. Thereafter, Sec. 149 was renumbered as Sec. 150 of the Act. It is submitted that earlier proviso to sub-sec. 4 of Sec. 149 and sub-sec. 5 provided for the concept of pay and recover. However, after amendment, the proviso to sub-sec. 4 and sub-sec. 5 of Sec. 150 of the Act have been omitted. Thus, in view of changed scenario, the judgment passed by the Supreme Court in the case of Swaran Singh (supra) does not hold good, and thus, where the Insurance Company is exonerated from its liability on the ground of violation of the terms and conditions of the insurance policy, then the principle of pay and recover cannot be applied.

(3.) Per contra, appeal is vehemently opposed by counsel for the respondents.