NATIONAL INSURANCE CO. LTD. Vs. FAYAZ AHMED SHAH

JUDGEMENT

(1.) Death of a 7th standard student at the age of 14 years in a road accident resulted in filing petition under Section 166 of Motor Vehicle Act before Motor Accident Claims Tribunal, Srinagar which culminated in passing the award (judgment) whereunder compensation amounting to Rs. 4,10,000/- including interim compensation and 6% interest from the date of institution of the petition till final realization has been awarded. Aggrieved and dissatisfied with the finding Appellant (Insurance Company) has filed the instant appeal. .

(2.) Respondents 1 & 2 are the parents whereas Respondents 3 & 4 are the sisters of the deceased (boy). Respondent No. 5 is the owner and driver of the offending vehicle (Tipper). The learned Counsel for the Appellant (Insurance Company) would contend that the judgment (award) passed against the Appellant is illegal as the Appellant-Company is not liable to indemnify. Elaborating this submission, it is stated that admittedly offending vehicle (Tipper) on the date of accident i.e. 15.10.2004 was insured but on the date of accident driver did not possess the valid driving licence which contravene the stipulation as contained in the policy of insurance, that being so Company is exonerated.

(3.) It is further contended that the driver who is also the owner of the offending vehicle did possess the driving licence which was initially valid for the period 22.08.1998 till 21.08.2001. From 21.08.2004 till 14th March, 2005 said licence had not been renewed. Thereafter, same was renewed on 14.03.2005 under renewal No. 1l8104/MVD upto 21st August, 2,007 but such renewal in any case will validate the licence only from the date of renewal so admittedly oh the date of accident i.e. 15.10.2004 licence was not valid. The Tribunal has wrongly fastened the liability on the Company. In view of the law laid down in the judgments Ram Babu v. United India Insurance Company Limited, 2008 8 SCC 165 and the National Insurance Company Ltd. v. Vidhyadhar Mahariwala and Ors., 2009 AIR(SC) 208, Company is not liable to indemnify.