UNITED INDIA INSURANCE CO LTD Vs. TILAK RAM

JUDGEMENT

(1.) A fatal accident, which occurred on April 5, 1982, on account of the rash and negligent driving of a motor vehicle, namely, a motor-cycle, by the first respondent, resulted in a claim petition and in an award being made in favour of the second and third respondents (original claimants) in the sum of Rs. 8,220/- with interest but no costs. The award is under challenge in the present appeal at the instance of the Insurance Company which has been made liable to satisfy the award. Two grounds were urged in support of the appeal : first, the there has been a breach of a specified condition of the policy which authorised the driving of the insured vehicle only by person who holds"a valid driving licence at the time of the accident or had held a permanent driving licence (other than a learner's licence) and is not disqualified from holding or obtaining such a licence" and, secondly, that there was a breach of the provisions of R. 2.14 of the Punjab Motor Vehicles Rules, 1940 (hereinafter referred to as'the Rules") which prohibited a pillion rider when the vehicle was being driven by a person holding a permit to drive as a learner and, as such, the person driving the vehicle could not be regarded as lawfully driving the same pursuant to such permit. To determine the validity of the submissions, the relevant statutory provisions need to be referred to at the outset.

(2.) Section 2 of the Motor Vehicles Act, 1939 (hereinafter referred to as"the Act") is the definition Section. It defines the words"driving licence" in Cl. (5-A) to mean"the document issued by a competent authority under Chapter II authorising the person specified therein to drive a motor vehicle or a motor vehicle of any specified class or description." The word"licence" is not separately defined. The words"motor vehicle" are defined in Cl. (18) to mean"any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises."Chapter II contains various provisions relating to licencing of drivers of motor vehicles. Section 3, sub-sec. (1), provides that"no person shall drive a motor vehicle in any public place unless he holds an effective driving licence issued to himself authorising him to drive the vehicle; and no person shall so drive a motor vehicle as paid employee or shall so drive a transport vehicle unless has driving licence specifically entitles him so to do."Sub-section (2) provides that"A State Government may prescribe the conditions subject to which sub-sec. (1) shall not apply to a person receiving instruction in driving a motor vehicle". Sections 4 to 17-B make various provisions concerning driving licences. Section 21. Sub-sec. (1), confers power on the State Government to make rules for the purpose of carrying into effect the provisions of Chapter II. Sub-section (2) enacts that without prejudice to the generality of the foregoing power, such rules may provide, inter alia, for"the issue of temporary licences to persons receiving instruction in driving". Chapter VIII containing Ss. 93 to 111-A makes provision, inter alia, for insurance of motor vehicles against third party risks. Under S. 94, sub-sec. (1), no person shall use (except as a passenger) or cause or allow any other person to use a motor vehicle in a public place, unless there is in force in relation to the use of the vehicle a policy of insurance complying with the requirements of the Chapter, hereinafter to be referred to as"the statutory policy" for the sake of convenience. Section 95 prescribes the requirements of the statutory policy and the limits of liability. One of the liabilities which is required to be covered by the statutory policy the extent specified in the said Section is in respect of the death of or bodily injury to any person or damage to any property of the third party caused by or arising out of the use of the vehicle in a public place. The liability which is not required to be covered is also specified in the Section. Section 96, sub-sec. (1) imposes a duty on the insurer to satisfy judgments against the person insured in respect, inter alia, of third party risk as therein prescribed. Sub-section (2), inter alia, limits the defences available to an insurer in an action in which he is sought to be made liable to satisfy the award and one of such statutory defences is set out in sub-cl. (ii) of Cl. (b) of the said sub-section, namely, that there has been a breach of a specified condition of the policy excluding, inter alia, the driving of the vehicle by any person who is not"duly licensed". Sub-section (3), inter alia, provides that where a certificate of insurance has been issued by the insurer in favour of the person by whom the statutory policy is effected, so much of such policy as purports to restrict the insurance by reference to any conditions other than those in Cl. (b) of sub-sec. (2) shall, as respects liabilities as are required to be covered by the statutory policy, be of no effect.

(3.) In exercise of the powers conferred, inter alia, by S. 3, sub-sec. (2), read with S. 21 of the Act, R. 2.14 of the Rules has been enacted which reads as under :