NATIONAL INSURANCE COMPANY LIMITED Vs. SATBIR

JUDGEMENT

(1.) The present appeal has been preferred by the Insurance Company assailing the award dtd. 4/1/2003 passed by the learned Motor Accident Claims Tribunal, Jind whereby compensation has been awarded in favour of the claimants and the liability has been fastened upon the appellant-Insurance Company without granting recovery rights.

(2.) The appeal has been filed by Insurance Company seeking recovery rights on the sole ground that the respondent No.3-driver of the offending vehicle did not possess a valid and effective driving licence on the day of the accident. Learned counsel for the Insurance Company submits that the driving licence (Ex. R-1) of respondent No.3-driver expired on 4/6/2001, whereas the accident in question took place on 4/7/2001. and he renewed his licence on 6/8/2001. Thus, It is argued that once the licence had expired on 4/6/2001, the driver ceased to possess a valid licence, resulting in a violation of the policy conditions. According to the appellant, renewal of licence was effected only after the accident, and therefore, on the date of occurrence, the driver was not duly licensed. It is, thus, contended that the learned Tribunal ought to have granted recovery rights to the insurer.

(3.) Notice of the appeal was duly issued to the respondents, whereupon respondent No.4-owner of offending vehicle entered appearance through counsel and contested the matter. The learned counsel submits that the contention of the insurer is contrary to the statutory mandate contained in the Motor Vehicles Act, 1988. It is submitted that the proviso to Sec. 14 specifically provides that the licence shall continue to remain effective from for period of thirty days from such expiry. Learned Counsel argues that the licence in the present case expired at midnight of 4/6/2001, and the computation of the statutory grace period begins from 5/6/2001. The thirtieth day, on proper computation, therefore falls on 4/7/2001, which is the date of accident. Thus, it is urged that the licence was legally effective on the date of occurrence, and the driver cannot be treated as unlicensed.