NEW INDIA INSSURANCE CO LTD Vs. GHARA NAG

JUDGEMENT

(1.) THIS appeal has been filed by the insurance company against the award of the Claims Tribunal directing the insurance company to pay a sum of Rs. 25,000 towards 'no fault liability' as contemplated under section 140 of the Motor Vehicles Act. The learned counsel appearing for the insurance company submitted that though there is no dispute about the existence of the policy, the insurance company has disputed about the existence of a valid driving licence. It is, therefore, submitted that the insurance company is not liable and the liability under section 140, if any, should be borne by the owner.

(2.) IT appears from the order-sheet that no notice has been issued to respondent No. 5, the owner. Issuance of notice to owner who is a resident of Calcutta at this stage would linger the proceeding further. IT is not disputed that the main claim application is still pending before the Claims Tribunal and a specific plea has been taken that the driver of the vehicle did not have a valid driving licence. The question as to whether the driver had a valid driving licence or not can be determined on the basis of evidence on record by the Claims Tribunal and if it is ultimately found that the driver did not have any driving licence and the insurance company is not liable, the sum of Rs. 25,000 directed to be pafd by insurance company towards 'no fault liability' is to be reimbursed by the owner and necessary direction can be issued by the Claims Tribunal itself. In such view of the matter, keeping in view the purpose for which section 140 has been enacted, I do not deem it fit to interfere with the order passed by the Claims Tribunal. IT is made clear that necessary direction shall be issued by the Claims Tribunal regarding reimbursement from the owner if ultimately the insurance company is not found liable. The amount deposited in this court along with accrued interest may be paid to the claimant-respondent by way of account payee cheque. The balance amount shall be paid by the insurance company by 15.3.99, and shall be kept in fixed deposit for a period of five years with permission to withdraw quarterly interest. The misc. appeal is accordingly disposed of. There will be no order as to costs. A copy of this order may be handed over to learned counsel for the appellant for information and compliance. Appeal allowed.