The New India Assurance Co. Ltd. v. Sunita Devi & Ors.

1. The plea of the appellant insurance company for recovery rights was rejected by the Motor Accident Claims Tribunal (Tribunal) by judgment dated 31.08.2009 in accident claim case (suit no.1177/2004) of the first respondent with observations that the registered owner of the vehicle, third respondent herein, in his testimony had proved due diligence, his evidence showing that at the time of engaging the second respondent as the driver, satisfaction had been reached about his capacity and competence to drive, his driving licence having been perused.

2. The insurance company reiterates the plea for recovery rights. The plea, in the above facts and circumstances, ought not be accepted. The case is covered by the decision of the Supreme Court in United 2017:DHC:4665 MAC Appeal No.551/2009 India Insurance Company Ltd. V. Lehru & Ors., (2003) 3 SCC 338. The registered owner / insured has demonstrated due diligence.

3. The appeal is dismissed. The pending application also stands dismissed.

4. The insurance company had deposited the awarded amount with interest in terms of the earlier directions. It is noted that the claimant had died during the pendency of these proceedings. His legal heirs will have the liberty to take out appropriate proceedings to have the amount deposited by insurance company released in their favour.

5. The statutory amount shall be refunded. R.K.GAUBA, J. AUGUST 22, 2017 yg