Full Text
FAO 86/2003
UNITED INDIA INSURANCE CO.LTD. ..... Appellant
Through: Ms. Sakshi Gupta, Advocate.
Through: Mr. Nitinjya Chaudhary and Ms. Sushma Sachdeva, Advocates for the respondent
No.3.
Date of Decision: September 26, 2011
JUDGMENT
1. Whether reporters of local papers may be allowed to see the judgment?
2. To be referred to the Reporter or not?
3. Whether judgment should be reported in Digest? JUDGMENT (ORAL): REVA KHETRAPAL, J.
1. The only point sought to be urged in this appeal by the learned counsel for the appellant-Insurance Company is that the Insurance Company is entitled to total exoneration from the payment of the award amount, and the learned Motor Accident Claims Tribunal ought to have afforded the said relief to the appellant-Insurance Company instead of directing the Insurance Company to pay the 2011:DHC:4992 award amount to the respondent No.1 with liberty to recover the said amount from the respondent No.3-insured after satisfying the award.
2. The aforesaid aspect is now well-settled by the decision of a three-Judge Bench of the Hon’ble Supreme Court in the case of ‘National Insurance Company Limited versus Swaran Singh and Others (2004) 3 SCC 297, wherein it has been held that even in cases where the driver of the offending vehicle is not in possession of a valid and effective driving licence at the time of the accident, the Insurance Company must pay to the claimants the award amount and can recover the same from the insured. The relevant portion of the judgment is quoted below:-
3. In view of the law laid down by the Hon’ble Supreme Court, I find no reason to interfere with the award. The deposited amount shall be released to the claimant with interest thereon. Any shortfall shall be made good by the Insurance Company within 30 days from today.
4. The appeal is dismissed. There shall, however, be no order as to costs.
5. Records of the Claims Tribunal be sent back to the concerned Tribunal forthwith.
REVA KHETRAPAL (JUDGE) September 26, 2011 ak