ORDER : 1. Leave granted. 2. Heard learned counsel for the parties and perused the record. 3. Insurance Company is aggrieved by the judgment and order dated 11.7.2006, pronounced by learned Single Judge of the High Court of Punjab and Haryana High Court at Chandigarh in Respondent’s FA No.2051 of 1995, whereby and whereunder appeal filed by the owner of the vehicle has been allowed and the award of the Motor Accident Claims Tribunal (for short, "Claims Tribunal") dated 15.12.1994 has been modified. By the impugned order passed by the learned Single Judge, a direction has been given to Appellant Insurance Company to pay the amount of Rs.1,61,000/- together with interest accrued thereon to claimants. 4. We have been given to understand that the aforesaid amount has already been paid by Respondent No.1 - owner of the vehicle to the claimants. 5. The Claims Tribunal had recorded a categorical finding that the offending Van at the relevant point of time was not being driven by a person holding a valid licence. Relevant finding in this regard is reproduced hereinbelow: "In view of the above I hold that since the respondent No.1 - owner entrusted the offending van to the respondent No.2, who was not holding a valid driving licence at the time of accident, the respondent no.1 violated the conditions of the insurance policy and therefore the insurance company is not liable to indemnify the respondent No.1-owner in accordance with the terms of the policy. As such I hold that the respondents No.1 & 2 only are liable to pay the compensation amount in this case to the petitioners. Accordingly this issue is decided in favour of the petitioners and against the respondents No.1 & 2.” 6. In the light of the aforesaid finding, the Claims Tribunal, in our opinion, rightly directed that the amount should be paid by the owner and driver of the vehicle only. No liability was fastened on the Insurance Company as at the relevant point of time, Van was being driven by a person who was not holding a valid driving licence. This certainly amounted to violation of the condition of the Insurance Policy. However, learned Single Judge of the High Court proceeded on wrong assumption and held it otherwise giving rise to filing of the present appeal. This certainly amounted to violation of the condition of the Insurance Policy. However, learned Single Judge of the High Court proceeded on wrong assumption and held it otherwise giving rise to filing of the present appeal. The findings of learned Single Judge that even if driver was having a fake licence, would not exonerate the Insurance Company as he was not negligent in driving, are certainly erroneous. Driving without licence or with a fake licence and driving a vehicle negligently are two different aspects of the matter. Holding a valid driving licence is a requirement of law. If the vehicle was being driven by a person holding a valid licence, but rashly and negligently, is a matter of evidence. The very fact which stood established that licence of driver Jagdish was a fake one, would completely exonerate Insurance Company. 7. In the light of the aforesaid, we are of the considered opinion that the impugned judgment, insofar as it fastens the liability on the Appellant Insurance Company, cannot be upheld. The same is to be set aside. We accordingly do so. 8. We are also fortified in our view in the light of the two judgments of this Court reported in 2007 (4) SCALE 36 "National Insurance Co. Ltd. versus Laxmi Narain Dhut" and 2011 (5) SCALE 494 "Jawahar Singh versus Bala Jain and others", wherein it has been held that in case it is found that the offending vehicle was driven by driver who was either holding no licence or a fake licence, then it amounts to violation of terms and conditions of policy and in that circumstance, no liability can be fastened on the Insurance Company. 9. We accordingly allow the appeal to the aforesaid extent and the finding insofar as liability has been fastened on the Insurance Company is set aside. The Award of the Claims Tribunal is restored. Parties to bear their own costs.