National Insurance Co. Ltd. v. Prakashi & Ors.

Delhi High Court · 30 Aug 2017 · 2017:DHC:4958
R. K. Gauba
MAC Appeal No.624/2009
2017:DHC:4958
motor_accident_claims appeal_dismissed Significant

AI Summary

The Delhi High Court upheld insurer's liability to pay compensation to third party claimants despite the driver lacking a valid licence, emphasizing protection of victim rights and insurer's recovery remedies.

Full Text
Translation output
MAC Appeal No.624/2009 HIGH COURT OF DELHI
Date of Decision: 30th August, 2017
MAC APPEAL 624/2009
NATIONAL INSURANCE CO. LTD. ..... Appellant
Through: Mr. D.K. Sharma, Advocate
VERSUS
PRAKASHI & ORS. ..... Respondents
Through: Mr. Ashok Popli, Adv. for R-1 & 2
CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
JUDGMENT
(ORAL)

1. By the impugned judgment dated 13.10.2009, while awarding compensation in favour of the first and second respondents (collectively, the claimants), the liability to pay was fastened on the appellant / insurance company (insurer) and its plea about breach of the terms and conditions of the insurance policy having been accepted on the basis of the finding that the driver of the offending vehicle (insured vehicle) did not hold a valid or effective driving licence, recovery rights were granted in its favour.

2. By the appeal at hand, the insurance company presses for total exoneration questioning the direction to pay in the first instance. 2017:DHC:4958 MAC Appeal No.624/2009

3. The said contention is noted but rejected as in the benevolent jurisdiction, third party rights cannot be defeated, the interest of the insurance company having been duly protected.

4. In terms of order dated 18.12.2009, the insurance company had deposited the awarded amount, out of which a part was allowed to be released by order dated 03.02.2010, the balance having been kept in fixed deposit receipt. The balance shall now be released to the claimants in terms of the impugned judgment.

5. The statutory deposit shall be refunded.

6. The appeal is disposed of in above terms. R.K.GAUBA, J. AUGUST 30, 2017 yg