KHEM CHAND Vs. UMA DEVI

JUDGEMENT

(1.) IN this appeal the short point involved is whether the respondent insurance company can recover the awarded amount from the appellant.

(2.) THE facts, in brief, are that one Tara Chand died in the accident. The claimants filed a petition for grant of compensation which was allowed by the impugned award and compensation of Rs. 5,60,000 with interest at the rate of 7.5 per cent per annum was awarded in favour of the claimants and against the respondent. The learned Tribunal held that the driver of the vehicle was driving the same in an intoxicated condition. It held the insurance company liable to pay the compensation at the first instance but learned Tribunal has further directed that the insurance company is at liberty to recover the same from the owner. It is against this portion of the award that the owner has come before this court.

(3.) THE law is very well settled that a claim which falls within the purview of an Act Policy, i.e., a liability falling within the ambit of section 147 of the Motor Vehicles Act, 1988 ( 'the Act ') can only be contested by the insurance company on the grounds available to it under section 149 of the Act. It is not permitted to contest the proceedings on any other ground. Intoxication of the driver is not a ground available to the insurance company under section 149 of the Act. Therefore, the liability, which is statutory under section 147 of the Act, has to be satisfied by the insurer. It may be clarified that in case the insurer in addition to the liability which it is bound to cover under the Act covers other liability then in case of such extended liability, it may raise the defences available to it as per terms of the policy, but as far as statutory liability is concerned, the insurer has no authority to incorporate any term in the policy which is not contemplated in terms of section 149 of the Act. Therefore, the insurance company could not have been permitted to raise this defence and it could not be permitted to recover the awarded amount from the insured.