United India Insurance Co. Ltd. v. Lt. Col (Retd. ) G. C. Raina
2010-01-07
B.L.Saraf, G.D.Sharma
body2010
DigiLaw.ai
Per Justice G.D. Sharma, J. (Oral) 1. Order dated 07.03.2006 passed by the Learned Divisional Forum Jammu (hereinafter referred to as Forum) has been taken in appeal by the appellant solely on the ground that the respondent at the material time was driving the insured car without effective and valid driving licence. It is pleaded that the license had been issued by the Licensing Authority Gandhi Nagar, Gujrat and was valid upto 16.08.2003. The alleged accident took place on 09.10.2003 on the National Highway near Nagrota and the insured car bearing no JK02N-2976 was completely damaged. The respondent had also sustained grievous injuries. The Forum over-ruled the contention of the appellant in respect of invalidity of the driving licence by placing reliance in the decision of the case rendered by the High Court of Kerala reported as 2004 ACJ 457 (titled Oriental Insurance Company Ltd. v. Paulose). That Law was laid down under section 149 (2) (a) (II) of the Motor Vehicles Act 1988 and it was held that licence in respect of expiry of its validity period continues to exist unless the licensee had been disqualified to hold one. 2. Heard the arguments. 3. Mr. Jamwal, the learned advocate for the appellant has contended that now the law has undergone a sea change after the decision of the case "National Insurance Company Ltd. v. Laxmi Narain Dhutt ( AIR 2007 SC 1563 ). It has been held in this caseby the Hon'ble Supreme Court that S. 149 of Motor Vehicles Act is beneficial one quo the third party. But that benefit cannot be extended to the owner of the offending vehicle. While interpreting S.15 of the Motor Vehicles Act, the Hon'ble Supreme Court has gone to the extent of saying that renewal cannot cure fatality inherent in fake licence. 4. The arguments were completed in this case on 11.12.2009 and Mr. Vimal Balgotra advocate who had appeared in proxy for Mr. K.L.Sharma had sought time to produce the law but at today's hearing nobody is present on behalf of the respondent. On the contrary Mr. R.P.Jamwal advocate has produced the case of New India Assurance Co. Ltd. v. Suresh Chandra Aggarwal [ AIR 2009 (SC) 2987 ]. This was a case of a car accident where the death of the driver had occurred and his driving licence had expired 4 months prior to the date of accident.
On the contrary Mr. R.P.Jamwal advocate has produced the case of New India Assurance Co. Ltd. v. Suresh Chandra Aggarwal [ AIR 2009 (SC) 2987 ]. This was a case of a car accident where the death of the driver had occurred and his driving licence had expired 4 months prior to the date of accident. Claimant had not claimed that driver had applied for renewal of licence within 30 days. Since the deceased had no valid and effective driving licence on the date of the accident so the insurer was held not liable to indemnify the claimant for loss". Mr. Jamwal has further contended that in the case in hand, there is not even an iota of evidence to the effect that the respondent had applied within 30 days from the date of accident for the renewal of the driving licence. At the anvil of the legal scrutiny we find that the ratio decidendi of the decided cases of Laxmi Narian Dhutt as well as Suresh Chandra Aggarwal (supra) is applicable and we hold in no manner of doubt that the driver of the insured vehicle at the time of the accident was not having valid and effective driving licence. In this view of the matter, the order under appeal is found suffering from illegality and infirmity, Hence, the appeal is allowed and order is set aside. On the facts and in the circumstances of the case, no order as to costs. The appeal is consigned to records and the record of the Forum be returned at once. The interim direction if passed any shall stand vacated. The appellant is at liberty to get back the amount deposited alongwith interest accrued thereon from the Forum.