NEW INDIA ASSURANCE CO LTD Vs. DAYAL SINGH

JUDGEMENT

(1.) The Insurance Company is in appeal against the judgment of the MACT contending that in spite of the fact that the driver who drove the vehicle was proved to have had a fake driving licence, the liability is wrong cast on it.

(2.) The liability of the Insurance Company in a case of a fake licence or a renewal of licence of a licence which was a fake one have been considered by the Honble Supreme Court in several cases and the decisions in National Insurance Co v. Swaran Singh, 2004 3 SCC 297 and United Indian Insurance v. Divinder Singh,2007 8 SCC 342 are instructive. In the latter judgment, it has been held that a renewal of a fake driving licence is no licence at all and hence the insurer shall not be liable.

(3.) It was even held earlier by the Honble Supreme Court, while referring to the effect of a renewal of forged licence, in New India Assurance Co., Shimla v. Kamla, 2001 4 SCC 342: