NATIONAL INSURANCE CO LTD Vs. KARAN SINGH

JUDGEMENT

(1.) THIS appeal under section 173 of the Motor Vehicles Act, 1988 is directed against the award dated 9.4.2008 passed by the Motor Accidents Claims Tribunal, Udhampur (hereinafter referred to as the Tribunal' in short) in Claim Petition No. 45/MACT of 2002 entitled Karan Singh v. Dev Dutt, whereby an amount of Rs. 5,45,000 along with interest at the rate of 7.5 per cent per annum has been awarded as compensation in favour of the claimant- respondent Nos. 1 and 2.

(2.) THE brief facts material for disposal of this appeal are that on 11.3.2001 the deceased Dheeraj Singh, son of respondent Nos. 1 and 2 herein, died in a motor vehicle accident while he was driving his motor cycle and hit by Tata Mobile bearing registration No. JK 02-M 4417 which was driven in a rash and negligent manner by respondent No. 3 herein, owned by respondent No. 4 herein and was insured with appellant herein, National Insurance Co. Ltd. THE respondent Nos. 1 and 2 herein, filed a claim petition before the learned Tribunal and according to them the deceased was a student of eleventh class and was aged about 17-18 years at the time of accident. THE learned Tribunal passed an award on 9.4.2008 whereby a compensation of Rs. 5,45,000 was awarded in favour of the claimant-respondent Nos. 1 and 2 and directed the appellant insurance company to satisfy the award.

(3.) MR. Suneel Malhotra, learned counsel for the appellant insurance company has submitted that the driver of the offending vehicle was not holding a valid and effective driving licence at the time of the accident as such the insurance company is not liable to pay the amount of compensation awarded. He has further submitted that the quantum of compensation has not been properly assessed but the same is assessed on imaginary grounds. MR. Raghu Mehta. learned counsel for claimant-respondent Nos. 1 and 2, on the other hand, has submitted that the insurance company has not obtained the requisite permission under section 170 of the Motor Vehicles Act, 1988 from the Tribunal and as such he cannot question the amount of compensation awarded by the Tribunal and this defence is not available to the insurance company under statute. He has further submitted that the appellant insurance company is liable to pay the amount of compensation and if the driver is not holding a valid and effective driving licence, the insurance company can recover that amount from the driver and owner afterwards. MR. K.K. Pangotra, Advocate appearing for driver, has submitted that insurance company is liable to pay the compensation.