LAWS(ORI)-2005-12-6

MINATI SAMANTRAY Vs. ORIENTAL INSURANCE COMPANY LTD

Decided On December 22, 2005
Minati Samantray Appellant
V/S
ORIENTAL INSURANCE COMPANY LTD Respondents

JUDGEMENT

(1.) This letters patent appeal is directed against the judgment of Learned Single Judge in Miscellaneous Appeal Nos. 29 of 1995 and 121 of 1995 enhancing the compensation of Rs. 51,000/ - awarded by Learned Second Motor Accident Claims Tribunal, (in short, 'MACT'), ' Cuttack in Misc. Case No. 134 of 1987 to Rs. 90.000/ -.

(2.) THE relevant facts involved in the case are follows :

(3.) MR . A. K. Mohanty, Learned Counsel appearing for Insurance Company respondent No. 1 on the other hand submitted that Insurance policy is a contract between the owner of the vehicle and the Insurance Company and the Insurance Company is liable to pay compensation to the claimants only if the conditions laid down in the Insurance policy are rigidly fulfilled. He submitted that one of the conditions of the policy is that the vehicle must be driven by a driver holding a valid licence and if the offending vehicle was driven at the time of the accident by a driver not having a valid licence then the liability of the Insurance Company will cease and the company will not be liable to pay any compensation to the victims or the claimants. Mr. H. M. Dhal, Learned Counsel appearing for respondent No. 2 argued that the burden of proving that the driver had no valid licence at the time of the accident squarely lies on the Insurance Company and that the burden having not been discharged by production of any document, the Insurance Company, respondent No. 1 is liable to pay the compensation to the claimants.