Case Note & Summary
The Supreme Court allowed civil appeals filed by Hind Samachar Ltd. (Delhi Unit) against the National Insurance Company Ltd. regarding an accident that occurred on 26.01.1993 involving the appellant's truck and a Matador van, resulting in nine deaths and two injuries. The Motor Accidents Claims Tribunal found composite negligence apportioned 75:25 between the drivers of both vehicles. The insurance company alleged the truck driver had a fake driving licence and sought 'pay and recovery' direction against the truck owner. The High Court granted this direction, but the Supreme Court reversed it, holding that the insurance company failed to prove the truck owner's deliberate breach or collusion regarding the fake licence. The Court relied on binding precedents establishing that mere possession of a fake licence by the driver does not absolve the insurer's liability unless the insured's breach is proved. The insurance company was directed to indemnify the truck owner, and the appeals were allowed.
Headnote
Motor Vehicles Act, 1988-- Accident between truck and matador-- Fatal accident as 9 persons were died and two injured-- Claim for compensation-- Composite negligency apportioned betwen two vehicles at the rate of 75:25-- Breach of term of insuance policy-- High court was of the view that the driver of offending vehicle was having fake driving license-- High court awarded in favour of insurance company and granted to pay an recover in favour of insurance comapny-- Aggrieved-- Challenged by an owner of truck before Supreme court-- Case of Lehru and ors referred-- Failure to prove fake license by the insurance company-- Cases referred-- No evidence as to seizure of license-- Evidence from the office of R.T.O suggested that the driving license was issued-- Evidence as to renewal of license-- Owner of the vehicle is not expected to verify the genuineness of license produced by the driver-- Judgment of High Court set aside-- Part as to pay and recover set aside- Insurance company directed to pay an amount of compensation- Rest of the award kept intact- Appeals were allowed Para-- 7, 11, 13, 16, 18
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Issue of Consideration: Whether the insurance company was entitled to 'pay and recovery' direction against the truck owner based on allegation of fake driving licence
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Final Decision
The Supreme Court allowed the appeals, set aside the High Court's 'pay and recovery' direction, and directed the insurance company to indemnify the truck owner
