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2003 DIGILAW 233 (JK)

National Insurance Co. Ltd. v. Gh. Ahmed Wani

2003-08-11

SYED BASHIR-UD-DIN

body2003
1. In claim petition No.3/98 the MACT Budgam has by order dated 23.7,2002 awarded compensation in the sum of Rs. 3,84,000/- with 9% interest from the date of institution of the claim petition, to the four claimants. This award is impugned in this petition filed by National Insurance Co. 2. Ld. Counsel in his submissions has taken two grounds to challenge the award. First that the award is on higher side and second that the owner and driver of the vehicle are saddled with liability to pay the amount through on the material date driver is found in possession of invalid licence. Payment of the award amount rather liability for payment of this award is foisted on Insurance Company. Heard counsel for the parties. Apart from the question of determination of compensation and method employed to arrive at the figure on evidence on record, it is conceded by Mr. N. A. Dandroo that the owner and driver contested the claim petition before MACT and that the Insurance Company appellant has not sought and got permission to defend the claim on grounds available to the owner and the driver. There is no dispute that the driver on the material date was in possession of invalid licence which is even finding of the MACT. 3. In such circumstances challenge cannot be thrown to the quantum of compensation/ amount awarded by the tribunal in this MACT claim petition in absence of leave to contest the claim on all grounds available to the owner. (See AIR 1988 SC 2968). 4. So far as raised question of invalidity of the driving license to stand as bar to recovery of award amount from the concerned Insurance Co. is concerned. Same cannot also come between the claimants and the compensation awarded against the Insurance Company. As observed by Apex Court in new India Assurance Company Vs. Kamla & Ors, With other two appellants (AIR 2001 SC 1419) that in such case insurer "who is made statutorily liable to pay compensation to third parties on account of the certificate of insurance issued shall be entitled to recover from the insured the amount paid to the third parties, if there was any breach of policy conditions on account of the vehicle being driven without a valid driving licence."... The Supreme Court has further observed "If the Insurance Company succeeds in establishing that there was breach of the policy condition, the Claims Tribunal shall direct the insured vehicle owner to pay that amount to the insurer. In default the insurer shall be allowed to recover that amount (which the insurer is directed to pay to the claimants-third parties) from the insured person." Even the District Judge, concerned Presiding Officer of MACT Budgam has referred to this judgment and ordered that Insurance Co. respondent no.2 before the Tribunal shall recover the amount from the respondent No.3 and the respondent No.3 (owner) is directed to reimburse the amount to the respondent No.2. This direction is obviously in compliance with the mandate of law. In view of the above no ground is made to admit the appeal for hearing. Dismissed. The amount if any, deposited in the registery in this claim petition shall be disbursed to concerned claimants under Rules against proper receipt less the amount, if any, paid to the claimants.