LAWS(P&H)-2011-5-97

BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LTD Vs. BIRMATI

Decided On May 19, 2011
BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LTD Appellant
V/S
BIRMATI Respondents

JUDGEMENT

(1.) The appeal by the Insurance Company is on the ground that the driver did not have a valid driving licence and therefore, while awarding the compensation, the Tribunal provided for a right of recovery. Learned Counsel is still aggrieved by the decision and cites for consideration a judgment of the Hon'ble Supreme Court in National Insurance Company Limited v. Parvathneni and Another, 2009 8 SCC 785, where the Hon'ble Supreme Court had made a reference about the pay and recover principle in a case where the Court found that the Insurance Company was not liable. In this case, there is hardly a reason to doubt the proposition relating to pay and recover in a situation, which is wholly covered under Section 149(4) proviso Section 149(5) of the Motor Vehicles Act. The judgment in Parvathneni's case , does not doubt the decision of the Hon'ble Supreme Court in National Insurance Company v. Swaran Singh, 2004 3 SCC 297, where the point has been brought out through judgment that summarises the law in paragraph 110 as follows:

(2.) If there is ever a doubt in the principle, it is only in respect of cases where the Insurance Company was not liable in the first place or there was no policy of insurance to cover the risk but still the insurance company was made liable for satisfying the claim for a third party. In such a situation, doubting the pay and recover principle will be perfectly justified. However, in such a situation where there was a valid insurance and the person was making the claim was also entitled to be protected in terms of Section 147 of the Motor Vehicles Act that provides for compulsory insurance cover, the right of liability of the Insurance Company is statutorily laid down through the provisions in Section 149(4) proviso Section 149(5) and this point has also been brought by the judgment of the Hon'ble Supreme Court in New India Assurance Co., Shimla v. Kamla, 2001 4 SCC 342. I have no doubt in my mind about principle which is very well laid down and I will not feel deterred by the doubt which is expressed by the Hon'ble Supreme Court in Parvathneni's case .

(3.) The award passed by the Tribunal is confirmed and the liability cast on the Insurance Company was perfectly justified. The appeal is dismissed.