Full Text
$ -7 HIGH COURT OF DELHI
Date of Decision: 9th January, 2015
NATIONAL INSURANCE CO. LTD. ..... Appellant
Through: Mr.A.K. Soni, Advocate
Through: None
JUDGMENT
1. This appeal is directed against the judgment dated 20.11.2010 whereby compensation of Rs.8,27,408/- was awarded by the Motor Accident Claims Tribunal (the Claims Tribunal) in favour of Respondent no.1 for having suffered injuries in a motor vehicular accident which occurred on 24.11.2004 at 11:30 p.m.
2. At the time of hearing of the appeal, the sole contention raised by the learned counsel for the Appellant is that since the Appellant had successfully proved breach of terms and 2015:DHC:160 conditions of policy, he was entitled to recovery rights against the insured(Respondent no.3), owner of the vehicle. Mr. A.K. Soni, Advocate urges that although the Claims Tribunal was conscious of the fact that breach of the terms and conditions has been established as the same was discussed by the Claims Tribunal in para 9 of the impugned judgment, yet while apportioning the liability, the Claims Tribunal totally missed out the same.
3. In para 9, the Claims Tribunal observed as under: “9. Insurance company/R-1 examined Shri Dharmender Arya R3W[1] who proved the insurance policy Ex.R3W1/1 and the covering letter of driving licence verification Ex.R3W1/2, Driving licence verification report received from Investigator Dr. Dharam Paul is Ex.R3W1/3, the original DL verification report is Ex.R3W1/4. In the aforesaid report, it was clearly mentioned that DL No.NDL/1201 dated 18.2.2003 was not issued. He has proved lthe official copy of Hoshiar Pur DTO regarding verification of DL as Ex.R3W1/5, the photocopy of DL is Ex.R3W1/6. He further proved the letter issued from Hoshiar Pur DTO as Ex.R3W1/7 and seizure memo of DL as Ex.R3W1/8. This witness has proved the notice issued to insured and driver as Ex.R3W1/9 vide receipt Ex.R3W1/10, second notice is Ex.R3W1/11, receipt Ex.R3W1/12 and the third notice Ex.R3W1/13 and receipt as Ex.ar3w1/14. He has further stated that driver was not holding valid driving licence, hence, the insurance company is not liable to pay any compensation. The witness was not cross-examined by the petitioner nor by the driver/owner.”
4. Thus, it is evident from the evidence adduced by the Appellant Insurance Company that a copy of the driving licence made available from the criminal case on verification was found to be fake as the driving licence in question was not issued on 18.02.2003 as was apparent from the driving licence. The Appellant issued notices Exs. R3W1/9, R3W1/11 and R3W1/13 to the owner and driver (Respondents no.2 and 3 herein), yet the driver and owner failed to produce the driving licence. In view of this, it is clearly established that Insurance Company has done whatever was within its power to prove that there was conscious breach of the terms and conditions of the policy. The onus had then shifted on the insured to rebut the presumption that the breach was not conscious and willful. In MAC.APP.399/2005 decided on 27.11.2012, this Court held as under:
13. Thus, in my view, the Appellant successfully proved the breach of the terms and conditions of the policy and was, therefore, entitled to avoid the insurance policy but for the statutory liability.”
5. Since the Insurance Company has successfully proved breach of the terms and conditions of policy, in view of the three Judge Bench decision in Sohan Lal Passi v. P. Sesh Reddy, (1996) 5 SCC 21 and United India Insurance Company Ltd. v. Lehru & Ors., (2003) 3 SCC 338, the Appellant would be entitled to recover the compensation paid from the insured.
6. The appeal is accordingly allowed.
7. It is held that the Appellant shall be entitled to recover the compensation paid in execution of this very judgment without having recourse to separate proceedings for recovery of the amount.
8. Pending applications also stand disposed of.
9. Statutory amount of Rs.25,000/-, if any, shall be refunded to the Appellant Insurance Company.
JUDGE JANUARY 09, 2015 pst