Judgment :- 1. These two appeals are by the claimants questioning correctness and legality of judgment and award passed by MACT, Bangalore dated 02.09.2010 in MVC No.5018/2009 and 5029/2009 whereunder claim petitions came to be allowed in part and compensation of Rs. 3,48,000/- and Rs.6,21,000/- respectively came to be awarded together with interest at 6% p.a. from the date of petition till date of deposit, as against claim of Rs, 10 lakhs each and liability has been fastened on the owner of the offending vehicle by absolving the insurer on the ground that driver of the offending vehicle did not possess a valid and effective driving licence. 2. I have heard the arguments of Smt.P.V.Kalpana, learned Advocate appearing for claimants and Sri.R.Rajgopalan, learned Advocate appearing for Insurer. Sri.S.P.Shankar, learned Senior Advocate and Sri.Gopalakrishna, learned Advocates have also contributed their assistance by advancing arguments in support of the contentions raised by Smt.P.V.Kalpana, learned Advocate appearing for claimants. 3. In both the appeals, notice to the owner of the offending vehicle was taken out by substituted service namely, through paper publication and by order dated 03.09.2012 and 30.08.2012 respectively it has been held as service being sufficient. None have appeared on behalf of the owner. 4. Husband and wife were proceeding on a motorcycle on 30.06.2009 and said vehicle was hit by a Light Goods Vehicle (Lorry) on account of rash and negligent driving of its driver. Due to impact, both fell down and sustained injuries. Wife Smt.Vijayalakshmi died at the spot due to grievous injuries sustained by her. Injured husband filed a claim petition claiming compensation on account of disability suffered and he also filed a claim petition along with his children seeking compensation on account of death of his wife. Both claim petitions were allowed in part and compensation was awarded. Liability was fixed on the owner of the offending vehicle by absolving the insurer of its liability on the ground that driver of the offending vehicle did not possess driving licence to drive transport vehicle. Hence, claimants have filed these two appeals seeking liability to be fixed on insurer and also for enhancement. 5. Liability was fixed on the owner of the offending vehicle by absolving the insurer of its liability on the ground that driver of the offending vehicle did not possess driving licence to drive transport vehicle. Hence, claimants have filed these two appeals seeking liability to be fixed on insurer and also for enhancement. 5. It is contended by Smt. P.V.Kalpana, learned Advocate appearing for claimants that Tribunal committed a serious error in absolving the insurer of indemnifying the claim and fastening the liability on the owner of the offending vehicle without considering the statutory provisions of Motor Vehicles Act, 1988 and the case laws relied upon by the claimants before the Tribunal in proper perspective and as such Judgment and awards are liable to be modified by fastening the liability on the insurer. 6. It is the contention of Smt.Kalpana that insurer though had raised a plea in the written statement that driver of the alleged vehicle did not possess a valid driving licence, insurer did not examine the Regional Transport Officer 01 the Officer from jurisdictional Regional Transport Authority to prove the said plea. She would contend that Official of the Insurance Company, RW-1 is not the competent person who can speak about the nature of driving licence possessed by the driver of offending vehicle and its validity thereof. Hence, she contends that in the absence of competent official speaking about the contents of driving licence, Tribunal could not have accepted the plea of the insurer and contends that this Court ought not to eschew the evidence of R.W. 1 in both the cases. She submits when claimants are third parties they should not be made to suffer by directing them to take recourse to recover the amount awarded by the Tribunal by initiating proceedings against the owner of the offending vehicle, inasmuch as satisfaction of the award by the insurer is a statutory liability as per Section 147(4) and (5) of Motor Vehicles Act, 1938. Hence, insurer cannot be absolved of its liability to pay the compensation to the claimants. 7. She would elaborate her submission by contending that insurer has not proved the contents of alleged driving licence extract Ex.R-2 and mere production of said document is not sufficient; primary evidence having not have been tendered, insurer cannot take recourse to secondary evidence as it is prohibited under Section 65 of Evidence Act. 7. She would elaborate her submission by contending that insurer has not proved the contents of alleged driving licence extract Ex.R-2 and mere production of said document is not sufficient; primary evidence having not have been tendered, insurer cannot take recourse to secondary evidence as it is prohibited under Section 65 of Evidence Act. There is no mention in the charge sheet Ex.P-2 about driver of the offending vehicle not possessing a valid and effective driving licence and as such, insurer should not be allowed to take umbrage under the charge sheet to stave off its liability. 8. She would further contend even otherwise there being a policy issued to the offending vehicle and same being in vogue as on the date of accident insurer has to indemnify the claim of third parties like that of the claimants in the instant appeals, and thereafter recover the same from the owner of the offending vehicle by applying the principle of "Pay and Recover". Smt.Kalpana would also contend that even in the event of this Court were to come to a conclusion that insurer is entitled to raise such a plea and defence raised by the insurer is to be accepted, even then, insurer is required to satisfy the award under Section 149(4) of the M.V. Act and recover the same from the owner of the offending vehicle since claimants are third parties. She would submit that claimants should not be made to suffer on account of technical lapses if any. In support of her submissions she has relied upon the following Judgments: "1. 2004 AC J 1 - NATIONAL INSURANCE CO., LTD., VS SWARAN SINGH AND OTHERS 2. 1999 ACJ 1556 - NATIONAL INSURANCE CO., LTD., VS AJAY DESHMUKH AND OTHERS 3. 2002 ACJ 1267 -- NATIONAL INSURANCE CO., LTD., V3 H.D.NAGARATHNAMMA AND OTHERS 4. 2010 ACJ 898 - UNITED INDIA INSURANCE CO., LTD., VS NEKKALLA AMMATHALLI AND OTHERS 5. (2013)7 SCC 62 - S.IYYAPAN VS UNITED INDIA INSURANCE CO., LTD., AND ANR MFA 14889/2007 C/W MFA 12221/2007 - NATIONAL INSURANCE CO., LTD., VS G C. RAM AD E VI AND OTHERS 6. 2001 ACJ 843 - NEW INDIA ASSURANCE CO., LTD., VS KAMLA AND OTHERS 7. AIR 1976 SC 2433 - UNION OF INDIA AND ANR VS K. S. SUBRAMANIAN 8. III (1999) CPJ 5 (SC) - ASHOK GANGADHAR MARATHA VS ORIENTAL INSURANCE CO., LTD." 9. 2001 ACJ 843 - NEW INDIA ASSURANCE CO., LTD., VS KAMLA AND OTHERS 7. AIR 1976 SC 2433 - UNION OF INDIA AND ANR VS K. S. SUBRAMANIAN 8. III (1999) CPJ 5 (SC) - ASHOK GANGADHAR MARATHA VS ORIENTAL INSURANCE CO., LTD." 9. On these grounds, she seeks for modification of judgment and award and prays for fastening the liability on the insurer of the offending vehicles. 10. She would also contend that quantum of compensation awarded by Tribunal is abysmally on the lower side and contends that Tribunal ought to have taken into consideration evidence tendered by both the claimants in respective claim petitions to award just and reasonable compensation. 11. She would submit that insofar as MFA 31-58/2011 is concerned compensation awarded towards ‘loss of dependency' is on the lower side and Tribunal ought to have accepted the version of PW-1 which was to the effect that deceased was a tailor by profession and earning Rs. 10,000/- per month. 12. She would submit that insofar as MFA 3157/2011 is concerned there are voluminous documents available on record to prove the nature of injuries sustained by claimant and non consideration of the same has resulted in abysmally less compensation being awarded. She would contend that claimant had undergone treatment for a period of six months at HOSMAT Hospital as evidenced from the inpatient record Exhibit P-13 which has not been appreciated by the Tribunal in proper perspective and hence, Tribunal ought to have awarded higher compensation towards 'pain and suffering', 'loss of income during laid up period', 'future loss of income' as also under other heads. Hence, she contends that Tribunal ought to have awarded just and reasonable compensation to the claimants in both the cases. On these grounds she prays for allowing the appeals filed by the claimants and seeks for modification of the Judgment and awards in question. 13. Hence, she contends that Tribunal ought to have awarded just and reasonable compensation to the claimants in both the cases. On these grounds she prays for allowing the appeals filed by the claimants and seeks for modification of the Judgment and awards in question. 13. Per contra, Sri.R.Rajagopalan, learned Advocate appearing for insurer would support the judgment and awards in question and contends it does not suffer from any infirmity whatsoever inasmuch as Tribunal has rightly absolved the insurer to indemnify the claim since driver of the offending vehicle did not possess valid and effective driving licence and he was possessing a licence to drive the "Light Motor Vehicle - Non Transport (N/T) and undisputedly vehicle involved in the accident being "Light Goods Vehicle" as reflected in the insurance policy Exhibit R-l and permit issued to the said vehicle which came to be marked as Exhibit R- 3 would also corroborate this fact and as such, Tribunal has rightly absolved the insurer of indemnifying the claim. 14. He would further contend that very licence granted to the driver of the offending vehicle as per Ex.R-2 would indicate that it was granted for a period of 20 years enabling the holder to drive a Light Motor Vehicle -Non Transport (N/T) and said licence does not enable the holder to drive Light Goods Vehicle namely offending vehicle. He would also submit that there is no endorsement in Ex.R-2 made by the jurisdictional transport authorities authorizing the holder to drive transport vehicle also. He would contend that under Section 2(10) of Motor Vehicles Act, driver of the vehicle has to possess a driving licence as defined under the Act and Section 3 mandates possessing a effective driving licence which is a condition precedent for a person to drive the motor vehicle and said driving licence should be effective driving licence issued to him and authorizing him to drive such class of vehicle as described in the licensee. He contends that under Section 10 of M V Act, 1988 form in which licence is required to be issued has been referred to or indicated and a person possessing a licence to drive a particular class of vehicle would not be entitled to drive any other class of vehicle unless and until authorised by the jurisdictional Regional Transport Authority. 15. 15. He would elaborate his submission by way of reply to the arguments advanced by Smt.Kalpana that secondary evidence should net have been permitted by Tribunal namely insurer should not have been allowed to produce certified extracts of Driving Licence and goods carriage permit by permitting them to be marked as Exhibit R-2 and R-3 and contends that even other-wise Section 77 of Evidence Act would enable a party to produce certified copies to prove the contents of public documents and as such these two documents came to be rightly accepted by the Tribunal and in the absence of any evidence tendered by the claimant to demonstrate that such certified extracts are surrounded with suspicion or it is an inadmissible document, such technical objections should not be allowed to be raised. He would also contend that at the time of marking of these two documents it was not objected to by the claimants and as such they cannot be allowed to raise such a plea in these appeals. 16. He would also contend that insurer had written a letter as per Exhibit R-3 to the owner of the offending vehicle calling upon the owner of the offending vehicle to furnish the details sought for in the said communication which is duly served on the owner of offending vehicle and no reply was furnished to the same. Thus, he contends that insurer had taken all reasonable steps as expected of the insurer and as such, he submits that award of the Tribunal does not suffer from any infirmity whatsoever. He would also contend that insurer is entitled to take all defences available to it under Section 149(2) of M V Act including a plea of driver of the offending vehicle not possessing a effective driving licence as has been raised in the instant claim petitions. He contends that insurer having raised such a plea has proved before the Tribunal that driver of the offending vehicle did not possess a valid licence to drive Light Goods Vehicle. Hence, he contends that judgment and award passed by the Tribunal is not required to be interfered with by; this Court. On these grounds he seeks for rejection of the contentions raised by the claimants. 17. Hence, he contends that judgment and award passed by the Tribunal is not required to be interfered with by; this Court. On these grounds he seeks for rejection of the contentions raised by the claimants. 17. He would further submit that claimants have not made out any case for enhancement of compensation and Tribunal haying considered the pleadings and evidence available on record, has awarded just and reasonable compensation which does not call for interference. Hence he prays for dismissal of the appeals filed by the claimants. 18. In support of his submission, he has relied upon the following judgments: "1. 2008 ACJ 721 - NATIONAL INSURANCE CO. LTD., VS ANNAPPA IRAPPA NESARIA AND OTHERS 2. 2008 ACJ 2161 - NEW INDIA ASSURANCE CO. LTD., VS ROSHANBEN RAHEMANSHA FAKIR AND ANR 3. 2009 ACJ 1411 - ORIENTAL INSURANCE CO., LTD., VS ANGAD KOL AND OTHERS 4. 2008(1) SCC 696 - NEW INDIA ASSURANCE CO., LTD., VS PRABHU LAL 5. 2011 ACJ 2729 A]R 2012 SC 86 - UNITED INDIA INSURANCE CO., LTD., VS SHILA DATTA AND OTHERS 6. 2003 ACJ 1 - NEW INDIA ASSURANCE CO., LTD., VS ASH A RANI AND OTHERS 7. 2006 ACJ 1336 - NATIONAL INSURANCE CO., LTD., VS KUSUM RAI AND OTHERS" 19. Sri S. P. Shankar, learned Senior Counsel who has assisted the Court supports the contentions raised by the claimants and contends that intention of the Parliament to insist on compulsory insurance was in aid and such our to victims of motor accidents which was a measure of securing social justice and mode for recovery of compensation. He would submit that in the teeth of prohibition contained in sub-section (4) of Section 149 an insurer cannot include in a policy any term which is inconsistent with section 149(2) and as such he submits the words 'valid' and 'effective' used in a policy are invalid and in-apposite. He would submit that an insurer is not free to take any defense beyond section 149(2) as held by the Hon'ble Apex Court in the case of BRITISH INDIA GENERAL INSURANCE CO., LTD. Vs CAPTAIN ITBAR SINGH AND OTHERS reported in AIR 1959 SC 1331 . He would submit that an insurer is not free to take any defense beyond section 149(2) as held by the Hon'ble Apex Court in the case of BRITISH INDIA GENERAL INSURANCE CO., LTD. Vs CAPTAIN ITBAR SINGH AND OTHERS reported in AIR 1959 SC 1331 . He would also submit that only the fundamental or willful breach alone will enable the insurer to avoid liability, which breach is directly related to the cause of the accident can be raised and every breach of terms of policy will not absolve the insurer of its liability. He would also submit that rules of beneficial construction needs to be applied and Chapter X to XII of M.V. Act which are beneficial in nature and intended to serve a social purpose, has to be read to the benefit of the victims of the accident. 20. Having heard the learned Advocates appearing for parties and on perusal of the judgment and awards in question and the case laws cited at the Bar, 1 am of the considered view that following points would arise for my consideration: "(i) Whether Tribunal was justified in fastening the liability on the owner of the offending vehicle and absolving the Insurer of its liability on the ground that there was violation of policy condition? OR Whether Tribunal was justified in absolving the insurer of its statutory liability to indemnify the claim on the ground that driver of the offending vehicle did not possess a valid and effective driving licence and thereby terms of the policy had been violated? (ii) Whether compensation awarded by the Tribunal in MVC 5018/2009 and 5019/2009 is just and reasonable or it requires to be enhanced? and, if so, to what extent? and, if not, what order? It would be necessary to state the facts in brief which has led to filing of these two appeals." BRIEF FACTS OF THE CASE: 21. On 30.06.2009, one Sri Suganachari along with his wife Smt.Vijayalakshmi was proceeding on a motor cycle bearing No.KA 05 EU 5761 on Anekal- Bannerghatta road and near Haragadde. A Light Goods Vehicle bearing registration No.KA-05-AB 5499 (hereinafter referred to as 'LGV' for brevity) dashed against the motor cycle on account of rash and negligent driving by its driver and due to the impact, both rider and pillion rider sustained grievous injuries. However, pillion rider Smt. Vijayalakshmi succumbed to the injuries at the spot. A Light Goods Vehicle bearing registration No.KA-05-AB 5499 (hereinafter referred to as 'LGV' for brevity) dashed against the motor cycle on account of rash and negligent driving by its driver and due to the impact, both rider and pillion rider sustained grievous injuries. However, pillion rider Smt. Vijayalakshmi succumbed to the injuries at the spot. Rider of motorcycle was shifted LO the hospital and after being administered first-aid treatment at Spandana Hospital he was shifted to HOSMAT Hospital where he was treated as an inpatient for about 7 days. 22. On account of injuries sustained in the road traffic accident, he filed a claim petition in MVC No.5018/2009 seeking compensation of Rs. 10 lakhs. Likewise, he along with his daughters filed a claim petition in MVC No.5019/2009 seeking compensation of Rs. 10 lakhs on account of demise of his wife Srnt.Vijayalakshmi. 23. Both these petitions came to be clubbed together and notices were ordered. Insurance company appeared and filed its statement of objections. On the basis of the pleadings of the parties, issues came to be formulated and evidence came to be tendered. Tribunal has answered issue No.1 regarding negligence of driver of the offending vehicle in the affirmative and has awarded compensation with interest @ 6% p.a. from the date of petition till realisation in both the cases as under. M.V.C. NO. 5018/2009 SI. No. Heads Amount 1 Pain & Sufferings Rs. 60.000 00 2 Medical Expenses Rs. 70,000-00 3 Loss of amenities and Future happiness Rs. 50,000-00 4 Loss of earning during laid up period Rs. 15,000-00 5 Loss of Future earning Rs. 1,08,000-00 6 Towards conveyance attendant & nourishment Rs. 15,000-00 7 Future Medical expenses Rs. 30,000-00 Total Rs. 3,48,000-00 M.V.C. NO.5019/2009 SI.No Heads Amount 1 Loss of income / dependency Rs. 5,76,000-00 2 Loss of Consortium Rs. 10,000-00 3 Loss of love and affection Rs.20,000-00 4 Transportation and funeral expenses Rs. 15,000-00 Total Rs. 6,21,000-00 24. 1,08,000-00 6 Towards conveyance attendant & nourishment Rs. 15,000-00 7 Future Medical expenses Rs. 30,000-00 Total Rs. 3,48,000-00 M.V.C. NO.5019/2009 SI.No Heads Amount 1 Loss of income / dependency Rs. 5,76,000-00 2 Loss of Consortium Rs. 10,000-00 3 Loss of love and affection Rs.20,000-00 4 Transportation and funeral expenses Rs. 15,000-00 Total Rs. 6,21,000-00 24. While answering issue Nos.2 and 3 in both the cases namely, from whom the claimants would be entitled to seek indemnification or who should pay the compensation, it has been held that owner of the offending vehicle is alone liable to pay the compensation to the claimants on the ground that driver of the offending vehicle was authorised to drive LMV Non- transport vehicle and he was not authorised to drive Light Goods Transport vehicle and as such there has been violation of terms of the policy. It has been further held by the Tribunal that if a licence is granted to a driver for twenty years a presumption would arise that it was issued to drive a vehicle other than transport vehicle and since driver in the instant case was authorised to drive LMV (N/T) and was driving Light Goods Transport Vehicle and as such, insurance company would not be liable to indemnify the insured since there was breach of policy conditions by relying upon judgment of the Hon'ble Apex Court in the case of ORIENTAL INSURANCE COMPANY LTD. vs. ANGAD KOL & OTHERS reported in 2009 ACJ 1411 where under insurer had been absolved of its liability to indemnify the claim on the ground that driver of the offending vehicle namely, Goods Transport Vehicle did not possess a valid and effective driving licence. 25. Learned Advocates during the course of arguments have drawn the attention of Court to various statutory provisions of Motor Vehicles Act, 1988. Hence, I deem it proper and relevant to extract the following provisions which are pressed into service and which would have bearing on the points to be adjudicated by this Court. RE: STATUTORY PROVISIONS: "2. Definitions.- In this Act, unless the context otherwise requires,- (10). "Driving licence" means the licence issued by a competent authority under Chapter II authorizing the person specified therein to drive, otherwise than as a learner, a motor vehicle or a motor vehicle of any specified class or description; (14). RE: STATUTORY PROVISIONS: "2. Definitions.- In this Act, unless the context otherwise requires,- (10). "Driving licence" means the licence issued by a competent authority under Chapter II authorizing the person specified therein to drive, otherwise than as a learner, a motor vehicle or a motor vehicle of any specified class or description; (14). "Goods carriage" means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods; (47) "Transport vehicle" means a public service vehicle, a goods carriage, an educational institution bus or a private service vehicle; 3. Necessity for driving licence.- (1) No person shall drive a motor vehicle in any public place unless he holds an effective driving licence issued to him authorizing him to drive the vehicle; and no person shall so drive a transport vehicle [other than [a motor- cab or motor cycle] hired for his own use or rented under any scheme made under sub-section (2) of Section 75] unless his driving licence specifically entitles him so to do. (2) The conditions subject to which sub-section (1) shall not apply to a person receiving instructions in driving a motor vehicle shall be such as may be prescribed by the Central Government. 10. Form and contents of licences to drive.- (2) A learner's licence or, as the case may be, driving licence shall also be expressed as entitling the holder to drive a motor vehicle of one or more of the following classes, namely:- (a) xxx (b) xxx (c) xxx (d) light motor vehicle; (e) transport vehicle; 14. Currency of licences to drive motor vehicles. (1) A learner's licence issued under this Act shall, subject to the other provisions of this Act, be effective for a period of six months from the date of issue of the licence. Currency of licences to drive motor vehicles. (1) A learner's licence issued under this Act shall, subject to the other provisions of this Act, be effective for a period of six months from the date of issue of the licence. (2) A driving licence issued or renewed under this Act shall,— (a) in the case of a licence to drive a transport vehicle, be effective for a period of three years; [Provided that in the case of licence to drive a transport vehicle carrying goods of dangerous or hazardous nature be effective for a period of one year and renewal thereof shall be subject to the condition that the driver undergoes one day refresher course of the prescribed syllabus; and] (b) in the case of any other licence, -- (i) if the person obtaining the licence, either originally or on renewal thereof, has not attained the age of (fifty years) on the date of issue or, as the case may be, renewal thereof,— (A) be effective for a period of twenty years from the date of such issue or renewal; or (B) until the date on which such person attains the age of (fifty years), whichever is earlier; (ii) if the person referred to in sub-clause (i), has attained the age of fifty years on the date of issue or, as the case may be, renewal thereof, be effective, on payment of such fee as may be prescribed, for a period of five years from the date of such issue or renewal: Provided that every driving licence shall, notwithstanding its expiry under this sub-section, continue to be effective for a period of thirty days from such expiry. 147. 147. Requirements of policies and limits of liability.- (1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which, - (a) is issued by a person who is an authorised insurer; and (b) insures the person or classes of persons specified in the policy to the extent specified in sub-section (2)— (i) against any liability which may be incurred by him in respect of the death of or bodily [or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place; (ii) against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place: Provided that a policy shall not be required,- (i) to cover liability in respect of the death, arising out of and in the course of his employment, of the employee of a person insured by the policy or in respect of bodily injury sustained by such an employee arising out of and in the course of his employment other than a liability arising under the Workmen's Compensation Act, 1923 (8 of 1923), in respect of the death of, or bodily injury to, any such employee,- (a) engaged in driving the vehicle, or (b) if it is a public service vehicle engaged as a conductor of the vehicle or in examining tickets on the vehicle, or (c) if it is a goods carriage, being carried m the vehicle; or (d) to cover any contractual liability. Explanation.- For the removal of doubts, it is hereby declared that the death of or bodily injury to any person or damage to any property of a third party shall be deemed to have been caused by or to have arisen out of, the use of a vehicle in a public place notwithstanding that the person who is dead or injured or the property which is damaged was not n a public place at the time of the accident, if the act or omission which led to the accident occurred in a public place. (2) Subject to the proviso to sub-section (1), a policy of insurance referred to in sub-section (1), shall cover any liability incurred in respect of any accident, up to the following limits, namely,- (a) save as provided in clause (b) the amount of liability incurred; (b) in respect of damage to any property of a third party, a limit of rupees six thousand: Provided that any policy of insurance issued with any limited liability and In force, immediately before the commencement of this Act, shall continue to be effective for a period of four months after such commencement or till the date of expiry of such policy whichever is earlier. (3) A policy shall be of no effect for the purposes of this Chapter unless and until there is issued by the insurer in favour of the person by whom the policy is effected a certificate of insurance n the prescribed form and containing the prescribed particulars of any conditions subject to which the policy is issued and of any other prescribed matters; and different forms, particulars and mattes may be prescribed in different cases. (4) Where a cover note issued by the insurer under the provisions of this Chapter or the rules made thereunder is not followed by a policy of insurance within the prescribed time, the insurer shall, within seven days of the expiry of the period of the validity of the cover note, notify the fact to the registering authority in whose records the vehicle to which the cover note relates has been registered or to such other authority as the State Government may prescribe. (5) Notwithstanding anything contained in any law for the time being in force, an insurer issuing a policy of insurance under this section shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons. 149. 149. Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks.- (1) If, after a certificate of insurance has been issued under sub-section (3) of section 147 in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under clause (b) of sub- section (1) of section 147 (being a liability covered by the terms of the policy) is obtained against any person insured by the policy then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment debtor, in respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments. (2) No sum shall be payable by an insurer under sub- section (1) in respect of any judgment or award unless, before the commencement of the proceedings in which the judgment or award is given, the insurer had notice through the Court or, as the case may be, the Claims Tribunal of the bringing of the proceedings, or in respect of such judgment or award so long as execution is stayed thereon pending an appeal; and an insurer to whom notice of the bringing of any such proceedings is so given shall be entitled to be made a party thereto and to defend the action on any of the following grounds, namely,- (a) that there has been a breach of a specified condition of the policy, being one of the following conditions, namely:-- (i) a condition excluding the use of the vehicle: - (a) for hire or reward, where the vehicle is on the date of the contract of insurance a vehicle not covered by a permit to ply for hire or reward, or (b) for organised racing and speed testing, or (c) for a purpose not allowed by the permit under which the vehicle is used, where the vehicle is a transport vehicle, or (d) without side- car being attached where the vehicle is a motor cycle; or (ii) a condition excluding driving by a named person or persons or by any person who is not duly licensed, or by any person who has been disqualified for holding or obtaining a driving licence during the period of disqualification; or (iii) a condition excluding liability for injury caused or contributed to by conditions of war, civil war, riot or civil commotion; or (b) that the policy is void on the ground that it was obtained by the non- disclosure of a materia] fact 01 by a representation of fact which was false in some material particular. (3) Where any such judgment as is referred to in sub- section (1) is obtained from a Court in a reciprocating country and in the case of a foreign judgment is, by virtue of the provisions of section ] 3 of the Code of Civil Procedure, 1908 (5 of 1908) conclusive as to any matter adjudicated upon by it, the insurer (being an insurer registered under the Insurance Act, 1938 (4 of 1938) and whether or not he is registered under the corresponding law of the reciprocating country) shall be liable to the person entitled to the benefit of the decree in the manner and to the extent specified in sub- section (1), as if the judgment were given by a Court in India: Provided that no sum shall be payable by the insurer in respect of any such judgment unless, before the commencement of the proceedings in which the judgment is given, the insurer had notice through the Court concerned of the bringing of the proceedings and the insurer to whom notice is so given is entitled under the corresponding law of the reciprocating country, to be made a party to the proceedings and to defend the action on grounds similar to those specified in sub- section (2). (4) Where a certificate of insurance has been issued under sub-section (3) of section 147 to the person by whom a policy has been effected, so much of the policy as purports to restrict the insurance of the persons insured thereby by reference to any conditions other than those in clause (b) of sub- section (2) shall, as respects such liabilities as are required to be covered by a policy under clause (b) of sub- section (1) of section 147, be of no effect: Provided that any sum paid by the insurer in towards the discharge of any liability of any person which is covered by the policy by virtue only of this sub- section shall be recoverable by the insurer from that person. (5) If the amount which an insurer becomes liable under this section to pay in respect of a liability incurred by a person insured by a policy exceeds the amount for which the insurer would apart from the provisions of this section be liable under the policy in respect of that liability, the insurer shall be entitled to recover the excess from that person. (6) In this section the expressions" material fact" and" material particular" means, respectively a fact or particular of such a nature as to influence the judgment of a prudent insurer m determining whether he will take the risk and, if so at what premium and on what conditions and the expression" liability covered by the terms of the policy" means a liability which is covered by the policy or which -would be so covered but for the fact that the insurer is entitled to avoid or cancel or has avoided or cancelled the policy. (7) No insurer to whom the notice referred to in sub- section (2) or sub- section (3) has been given shall be entitled to avoid his liability to any person entitled to the benefit of any such judgment or award as is referred to in sub- section (1) or in such judgment as is referred to in sub-section (3) otherwise than in the manner provided for in sub- section (2) or in the corresponding law of the reciprocating country, as the case may be. ANALYSIS OF STATUTORY PROVISIONS 26. Driving licence has been defined under Section 2(10) to mean licence issued by a competent authority under chapter II authorizing the person specified therein to drive a motor vehicle of any specified class or description. Section 3 of the MV Act prohibits a person to drive a motor vehicle in any public place unless he holds an effective driving licence issued to him authorizing him to drive such vehicle. It also prohibits a person from driving a transport vehicle unless his driving licence specifically entitles him so to do. Section 10(2) of the Act would indicate the holder of such licence is authorised to drive the motor vehicle of one or more of the classes specified therein. Sub-section (2) of Section 10 came to be substituted with effect from 14.11.1994 by Act No.54/ 1994. A perusal of Section 14 would indicate the period to which the licences are issued would be effective. Sub-section (2) of Section 10 came to be substituted with effect from 14.11.1994 by Act No.54/ 1994. A perusal of Section 14 would indicate the period to which the licences are issued would be effective. Under sub-section (1) learner's licence would be effective for a period of six months; under sub-section (2) driving licence issued or renewed in case of licence to drive a transport vehicle would be effective for a period of three years and for any other licence 20 years from the date of issue or renewal if the licensee had not attained the age of 50 years or until the date on which such person attains the age of 50 years, whichever is earlier; sub-clause (ii) of clause(b) of sub-section (2) of Section 14 mandates that if the person referred to in sub-clause (1) has attained the age of 50 years on the date of issue or renewal as the case may be, then licence issued would be effective for a period of five years from the date of such issue or renewal. The proviso indicates that not withstanding its expiry it shall continue to be effective for a period of 30 days from such expiry. Thus, it is clear that if a licence is issued or renewed in respect of a transport vehicle, it can only be for a period of three years. 27. Section 147 would indicate the requirement of policies and limits of liability. Under section 149 a duty is cast on the insurer to satisfy the judgment and awards passed against persons insured in respect of third party risks. However, sub-section (2) of Section 149 enables the insurer to raise a defence to stave off its liability and defend the action brought against it for recovery on the grounds enumerated in clause (a) and (b) of subsection (2). Under sub-clause (ii) of clause (a) of sub-section (2) of section 149, insurer is entitled to contend that compensation awarded by the Tribunal is not payable by it on the ground that person driving the offending vehicle was not duly licenced apart from taking a plea that such person driving the offending vehicle was disqualified for holding licence or had obtained a driving licence during the period of disqualification. The disqualification is to be found in Section 4 of the Act. The disqualification is to be found in Section 4 of the Act. In the background of these statutory provisions, let me examine as to whether driver of the offending vehicle in the instant case was authorised to drive the offending vehicle and as such, insurance company cannot stave off its liability. RE: POINT NO.(l) 28. In claims for compensation for accidents, various types of breaches with regard to conditions of driving licences would be set up as a defence to avoid such statutory liability by the insurer. Sub-clause (ii) of Clause (a) of sub section (2) of Section 149 would indicate that a person who is not "duly licensed" to drive the vehicle, if had been driving the offending vehicle, then insurer would be well within its limit to contend that there is breach of a specified condition of the policy. 29. As to whether breach of terms of policy would be a valid defence for the insurer to contend that it should be absolved of its liability to indemnify the claim is no more resintegra and said issue has been laid to rest by the Hon'ble Apex Court in the case of in NATIONAL INSURANCE COMPANY vs. SWARNA SINGH reported in 2004 ACJ page 1 wherein Hon'ble Apex Court has held that Insurer is entitled to raise a defence m terms of Section 149 (2) (a) (ii) of the Act of breach of policy condition to avoid its liability. It has been held as under: "102. The summary of our findings to the various issues raised in these petitions are as follows: (i) xxxx (ii) Insurer is entitled to raise a defence in a claim petition filed under Section 163-A or 166 of the Motor Vehicles Act, 1988, interalia, in terms of Section 149(2)(a)(ii) of the said Act." 30. It has also been held by the Hon'ble Apex Court in ihe case of UNITED INDIA INSURANCE CO. LTD. vs. SHILA DATTA reported in AIR 2012 SC 86 that once insurer is made a party, it can raise all contentions- to resist the claim. It has been held as under: "11. It has also been held by the Hon'ble Apex Court in ihe case of UNITED INDIA INSURANCE CO. LTD. vs. SHILA DATTA reported in AIR 2012 SC 86 that once insurer is made a party, it can raise all contentions- to resist the claim. It has been held as under: "11. Therefore, where the insurer is a party-respondent, either on account of being impleaded as a party by the Tribunal under section 170 or being impleaded as a party-respondent by the claimants in the claim petition voluntarily, it will be entitled to contest the matter by raising all grounds, without being restricted to the grounds available under section 149(2) of the Act. The claim petition is maintainable against the owner arid driver without impleading the insurer as a party. When a statutory notice is issued under section 149(2) by the Tribunal, it is clear that such notice is issued not to implead the insurer as a party- respondent but merely to put it on notice that a claim has been made in regard to a policy issued by it and that it will have to bear the liability as and when an award is made in regard to such claim. Therefore, it cannot, as of right, require that it should be impleaded as a party-respondent. But it can, however, be made a party- respondent either by the claimants voluntarily in the claim petition or by the direction of the Tribunal under section 170 of the Act. Whatever be the reason or ground for the insurer being impleaded as a party, once it is a party-respondent, it can raise all contentions that are available to resist the claim". 31. The Hon'ble Apex Court in SWARNA SINGH's case in conclusion has held that insurer would be entitled to raise a defence under Section 149(2)(a)(ii) contending that in view of violation of terms of policy it need not indemnify the claim. It was held as follows: "Summary of Findings: 102. The summary of our findings to the various issues raised in these petitions are as follows: (i) xxx (ii) xxx (iii) The breach of policy conditions, e.g., disqualification of driver or invalid driving licence of the driver, as contained in sub-section (2)(a)(ii) of Section 149, have to be proved to have been committed by the insured for avoiding liability by the insurer. Mere absence, fake or invalid driving licence or disqualification of the driver for driving at the relevant time, are not in themselves defences available to the insurer against either the insured or the third parties. To avoid its liability towards insured, the insurer has to prove that the insurer was guilty of negligence and failed to exercise reasonable care in the matter of fulfilling the condition of the policy regarding use of vehicles by duly licensed driver or one who was not disqualified to drive at the relevant time. (iv) The insurance companies are, however, with a view to avoid their liability must not only establish the available defence(s) raised in the said proceedings but must also establish 'breach' on the part of the owner of the vehicle, the burden of proof wherefor would be on them. (v) The court cannot lay down any criteria as to how said burden would be discharged, inasmuch as the same would depend upon the facts and circumstances of each case. Thus, insurer would be entitled to take umbrage under Section 149 (2)(a)(ii) by raising a defence that driver of the vehicle involved in the accident was not duly licenced or in other words, did not possess a driving licence to drive said vehicle. If such a defence is raised, naturally onus lies on the insurer. Thus, in the facts and circumstances of each case, it will have to be examined as to whether such a defence was raised at the first instance by the insurer and if having raised such a plea, has it been proved by the insurer to stave off its liability. 32. Infact the Hon'ble Apex Court while examining the restrictions on defences available to the insurer in the case of UNITED INDIA INSURANCE COMPANY LIMITED VS SHILA DATTA AND OTHERS reported in AIR 2012 SC 86 has held that when the insurer is a party respondent it will be entitled to contest the matter by raising all grounds, without being restricted to the grounds available under section 149(2) of the M.V Act. It has been held as under: "11. It has been held as under: "11. Therefore, where the insurer is a party-respondent, either on account of being impleaded as a party by the Tribunal under section 170 or being impleaded as a party-respondent by the claimants in the claim petition voluntarily, it will be entitled to contest the matter by raising ail grounds, without being restricted to the grounds available under section 149(2) of the Act. The claim petition is maintainable against the owner and driver without impleading the insurer as a party. When a statutory notice is issued under section 149(2) by the Tribunal, it is dear that such notice is issued not to implead the insurer as a party- respondent but merely to put it on notice that a claim has been made in regard to a policy issued by it and that it will have to bear the liability as and when an award is made in regard to such claim. Therefore, it cannot, as of right, require that it should be impleaded as a party-respondent. But it can, however, be made a party- respondent either by the claimants voluntarily in the claim petition or by the direction of the Tribunal under section 170 of the Act. Whatever be the reason or ground for the insurer being impleaded as a party, once it is a party-respondent, it can raise ail contentions that are available to resist the claim". 33. The Hon'ble Apex Court in the. cast' of NATIONAL INSURANCE CO., LTD., VS KUSUM RAI AND OTHERS reported in 2G06 AC J 1336 while examining as to whether there was breach of conditions of contract of insurance by the insured and whether such plea can be raised by the insurer to stave off its liability, has held in the affirmative. It was held in the said case as under: "9. It has not been disputed before us that the vehicle was being used as a taxi. It was, therefore, a commercial vehicle. The driver of the said vehicle, thus, was required to hold an appropriate licence therefore. Ram Lai who allegedly was driving the said vehicle at the relevant time, as noticed hereinbefore, was holder of a licence to drive a Light Motor Vehicle only. He did not possess any licence to drive a commercial vehicle. Evidently, therefore, there was a breach of condition of the contract of insurance. Ram Lai who allegedly was driving the said vehicle at the relevant time, as noticed hereinbefore, was holder of a licence to drive a Light Motor Vehicle only. He did not possess any licence to drive a commercial vehicle. Evidently, therefore, there was a breach of condition of the contract of insurance. The Appellant, therefore, could raise the said defence. 17. Although, thus, we are of the opinion that the Appellant was not liable to pay the claimed amount as the driver was not possessing a valid licence and the High Court was in error in holding otherwise, we decline to interfere with the impugned award, in the peculiar facts and circumstances of the case, in exercise of our jurisdiction under Article 136 of the Constitution of India but we direct that the Appellant may recover the amount from the owner in the same manner as was directed in Nanjappan, 2004 ACJ 721(SQ". 34. The next question that would arise for consideration is whether it would suffice if the insurer raises a defence that driver of the offending vehicle did not possess effective licence and thereby terms of the policy has been violated would itself be sufficient to contend that it should be absolved of its liability to indemnify the claim amount awarded by the Tribunal and what should be the nature of proof required to be placed or in other words, what is the degree of proof the insurer has to tender to be absolved of its liability, requires to be examined. The Hon'ble Apex Court in the case of NATIONAL INSURANCE COMPANY vs. SWARNA SINGH & OTHERS reported in" 2004 ACJ page 1, has held if driver of the vehicle was possessing licence to drive one type of vehicle and was driving another type of vehicle, then that would have no nexus to the cause of accident and as such, insurer would not be allowed to avoid its liability for technical breach of conditions of driving licence. It has been held as under: "82. Section 3 of the Act xxx has no licence. In each case on evidence led before the Claims Tribunal, a decision has to be taken whether the fact of the driver possessing licence for one type of vehicle but found driving another type of vehicle, was the main or contributory cause of accident. It has been held as under: "82. Section 3 of the Act xxx has no licence. In each case on evidence led before the Claims Tribunal, a decision has to be taken whether the fact of the driver possessing licence for one type of vehicle but found driving another type of vehicle, was the main or contributory cause of accident. If on facts, it is found that accident was caused solely because of some other unforeseen or intervening causes like mechanical failures and similar other causes having no nexus with driver not possessing requisite type of licence, the insurer will not be allowed to avoid its liability merely for technical breach of conditions concerning driving licence". 35. Now turning my attention back to the issue of driver of the offending vehicle possessing valid and effective driving licence, it is noticed that Hon'ble Apex Court in the case of NATIONAL INSURANCE CO.LTD vs. ANNAPPA IRAPPA NESARIA & OTHERS reported in 2008 AC J 721 while examining as to whether a driver who had a valid licence to drive 'light motor vehicle' was authorised to drive a light goods vehicle' as well, held in the affirmative and directed the insurance company to indemnify the claim. The Apex Court has examined the definition of 'Form' as defined under Rule 2(e) of Central Motor Vehicles Rules, 1989 both post amendment and pre amendment and has held that Rule 14 prescribes for filing of an application in Form No.4 for giant of a licence to drive a motor vehicle, categorizing the same under nine types of vehicle. It is also noticed that clause (e) of Form No.4 which provides for transport vehicle has been substituted by notification GSR: 221(E) with effect from 28.03.2001 and prior to the amendment in 2001 the entries relating to medium goods vehicle and heavy goods vehicle existed separately which has since been substituted by transport vehicle post amendment It is also held that light motor vehicle also found a place in both post amendment and pre amendment. In view of the fact that amendments carried out in the Rule having a prospective operation, it was held that licence held by the driver of a vehicle to drive 'light motor vehicle' was also authorised to drive light goods vehicle' as well. It has been held as under: "16. In view of the fact that amendments carried out in the Rule having a prospective operation, it was held that licence held by the driver of a vehicle to drive 'light motor vehicle' was also authorised to drive light goods vehicle' as well. It has been held as under: "16. From what has been noticed hereinbefore, it is evident that transport vehicle has now been substituted for 'medium goods vehicle' and 'heavy goods vehicle'. The light motor vehicle continued, at the relevant point of time, to cover both, light passenger carriage vehicle and light goods carriage vehicle. A driver who had a valid licence to drive a light motor vehicle, therefore, was authorised to drive a light goods vehicle as well. 17. The amendments carried out in the rules having a prospective operation, the licence held by the driver of the vehicle in question cannot be said to be invalid in law." 36. Hon'ble Apex Court in the case of ORIENTAL INSURANCE CO., LTD., VS ANGAD KOL AND OTHERS reported in 2009 ACJ 1411 had examined the issue regarding liability of the insurer to indemnify the claim when it tried to avoid its liability on the ground that driver of the offending vehicle namely Goods transport vehicle did not possess a valid and effective driving licence and held that a distinction exist between an effective licence granted to drive transport vehicle and passenger motor vehicle and as such it was held that a person holding licence to drive Light Motor Vehicle granted and valid for 20 years, would give rise for a presumption that it was meant for the purpose of the vehicle other than a transport vehicle inasmuch as if licence had been granted for a transport vehicle the tenure thereof would not have exceeded three years. In conclusion it held that insurance company is not liable. It has been held in ANGAD KOL's judgment as under: "8. Motor Vehicles Act, 1988 (hereinafter called as 'the Act') was enacted to consolidate and amend the law relating to motor vehicles. "Driving licence' has been defined in Section 2(10) to mean the licence issued by a Competent Authority under Chapter II authorizing the person specified therein to drive, otherwise than as a learner, a motor vehicle or a motor vehicle of any specified class or description. "Driving licence' has been defined in Section 2(10) to mean the licence issued by a Competent Authority under Chapter II authorizing the person specified therein to drive, otherwise than as a learner, a motor vehicle or a motor vehicle of any specified class or description. "Goods carriage" has been defined in Section 2(14) to mean any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods. The said Act also defines 'heavy goods vehicle', heavy passenger motor vehicle', medium goods vehicle' and 'medium passenger motor vehicle' as well as a 'light motor vehicle' in Section 2(21) of the Act to mean: "2(21) light motor vehicle' means a transport vehicle or omnibus the gross vehicle weight of either of which or a motor car or tractor or road-roller the unlading weight of any of which, does Dot exceed 7500 kilograms". 9. Although the definition of the light motor vehicle' brings within its umbrage both 'transport vehicle' or omnibus', indisputably, as would be noticed infra; a distinction between an effective licence granted for transport vehicle and passenger motor vehicle exists. Section 3 provides for the necessity of driveling licence, stating: "3. Necessity for driving licence.—{1) No person shall drive a motor vehicle in any public place unless he holds an effective driving licence issued to him authorizing him to drive the vehicle; and no person shall so drive a transport vehicle other than a motor car or motor cycle hired for his own use or rented under any scheme made under sub-section (2) of Section 75 unless his driving licence specifically entitles him so to do. Section 9 provides for grant of driving licence. Section 10 prescribes the form and contents of licences to drive which is to the following effect: "10. Form and contents of licences to drive.— (1) Every learner's licence and driving licence, except a driving licence issued under Section 18, shall be in such form and shall contain such information as may be prescribed by the Central Government. Section 10 prescribes the form and contents of licences to drive which is to the following effect: "10. Form and contents of licences to drive.— (1) Every learner's licence and driving licence, except a driving licence issued under Section 18, shall be in such form and shall contain such information as may be prescribed by the Central Government. (2) A learner's licence or, as the case- may be, driving licence shall also be expressed as entitling the holder to drive a motor vehicle of one or more of the following classes, namely:- (a) to (c) (d) light motor vehicle; (e) transport vehicle; (i) road Roller; (j) motor vehicle of a specified description." 10. The distinction between a 'light motor vehicle' and a 'transport vehicle' is, therefore, evident. A transport vehicle may be a light motor vehicle but for the purpose of driving the same, a distinct licence is required to be obtained. The distinction between a 'transport vehicle' and a "passenger vehicle' can also be noticed from Section 14 of the Act. Subsection (2) of Section 14 provides for duration of a period of three years in case of an effective licence to drive a "transport vehicle' whereas in case of any other licence, it may remain effective for a period of 20 years. 15. Licence having been granted for a period of 20 years, a presumption, therefore, arises that it was meant for the purpose of a vehicle other than a transport vehicle. 16. Had the driving licence been granted for transport vehicle, the tenure thereof could not have exceeded to three years. In National Insurance Company Limited Vs Annappa Irappa Nesaria (2008) ACJ 721 (SC)], this Court noticed the aforementioned development in the matter of grant of licence to a transport vehicle stating that the same became effective from 28 3.2001 in the following terms: "(16) From what has been noticed hereinbefore, it is evident that "transport vehicle" now been substituted for "medium goods vehicle" and "heavy goods vehicle". The light motor vehicle continued, at the relevant point of time to cover both, light passenger carriage vehicle and light goods carriage vehicle. A driver who had a valid licence to drive a light motor vehicle, therefore, was authorised to drive a light goods vehicle as well. The light motor vehicle continued, at the relevant point of time to cover both, light passenger carriage vehicle and light goods carriage vehicle. A driver who had a valid licence to drive a light motor vehicle, therefore, was authorised to drive a light goods vehicle as well. (17) The amendments carried out in the Rules having a prospective operation, the licence held by the driver of the vehicle in question cannot be said to be invalid in law". 18. From the discussions made hereinbefore, it is, thus, evident that it is proved that respondent No.6 did not hold a valid and effective driving licence for driving a goods vehicle. Breach of conditions of the insurance is, therefore, apparent on the face of the records". 37. In this background the facts on hand are required to be examined by this court. As already noticed in the instant case the insurer of the offending vehicle namely Goods Carrying Commercial Vehicle had filed its statement of objections in both the claim petitions by specifically contending that "when the driver does not possess valid and effective driving licence, valid permit and other breaches etc., the owner and the driver alone are liable to compensate the petitioner". Having raised such a plea and to prove that the driver of the offending vehicle did not possess a valid and effective driving licence, insurer got produced certified copy of the driving licence extract relating to the driver of the offending truck bearing No.KA-05-AB- 5499 by getting it marked as Exhibit R-2 A perusal of the said licence would indicate that it has been issued to the driver of offending vehicle by the Additional Licensing Authority, RTO, Hindupur to drive exclusively "LMV-Non Transport" valid from 25.02.2008 to 15.05.2024 (Valid for 20 years). Thus, undisputedly driver did not possess a effective licence to drive 'Light Goods Vehicle', which was the offending vehicle. 38. The policy issued to the offending vehicle which is marked as Exhibit R-1 would indicate that it is issued for "Goods Carrying Commercial Vehicle" valid from 15.03.2009 to 14.03.2010. The certified copy of the permit issued to the said vehicle was also produced by the insurer in the evidence of RW-1 and it was got marked as Exhibit R-3 which would also indicate that offending vehicle is a "Goods carrying commercial vehicle". The certified copy of the permit issued to the said vehicle was also produced by the insurer in the evidence of RW-1 and it was got marked as Exhibit R-3 which would also indicate that offending vehicle is a "Goods carrying commercial vehicle". It would also indicate that permit issued is for "Goods Carriage Permit" iind in the column type and model of the vehicle it has been described as "LMV- Goods Carriage Vehicle". A combined reading of these documents would clearly indicate that the vehicle in question is a Goods Carrier as defined under Section 2(14) of the Act and as such it is a transport vehicle as defined under section 2(47) of the Act. 39. Smt.P.V.Kalpana, learned counsel appearing for appellant has drawn the attention of this court to the Judgment of the Hon'ble Apex Court in the case of SJYYAPFAN VS UNITED INDIA INSURANCE CO., LTD., AND ANOTHER reported in (2013) 7 SCC 62 whereunder the Apex Court has held the mere absence of an endorsement in the licence to drive commercial Light Motor Vehicle in the licence issued to the driver of the offending vehicle could not be a ground for the insurer to disown its liability to pay compensation to a third party. In the said case, it has been held as under; "17. Reading the provisions of Sections 146 and 147 of the Motor Vehicles Act, it is evidently clear that in certain circumstances the insurer's right is safeguarded but in any event the insurer has to pay compensation when a valid certificate of insurance is issued notwithstanding the fact that the insurer may proceed against the insured for recovery of the amount. Under Section 149 of the Motor Vehicles Act, the insurer can defend the action inter alia on the grounds, namely, (i) the vehicle was not driven by a named person, (ii) it was being driven by a person who was not having a duly granted licence, and (iii) person driving the vehicle was disqualified to hold and obtain a driving licence. Hence, in our considered opinion, the insurer cannot disown its liability on the ground that although the driver was holding a licence to drive a light motor vehicle but before driving light motor vehicle used as commercial vehicle, no endorsement to drive commercial vehicle was obtained in the driving licence. Hence, in our considered opinion, the insurer cannot disown its liability on the ground that although the driver was holding a licence to drive a light motor vehicle but before driving light motor vehicle used as commercial vehicle, no endorsement to drive commercial vehicle was obtained in the driving licence. In any case, it is the statutory right of a third party to recover the amount of compensation so awarded from the insurer. It is for the insurer to proceed against the insured for recovery of the amount in the event there has been violation of any condition of the insurance policy. 18. In the instant case, admittedly the driver was holding a valid driving licence to drive light motor vehicle. There is no dispute that the motor vehicle in question, by which accident took place, was Mahindra Maxi Cab. Merely because the driver did not get any endorsement in the driving licence to drive Mahindra Maxi Cab, which is a light motor vehicle, the High Court has committed grave error of law in holding that the insurer is not liable to pay compensation because the driver was not holding the licence to drive the commercial vehicle. The impugned judgment is, therefore, liable to be set aside". 40. In the above case, issue related to whether driver holding a valid driving licence to drive light motor vehicle was authorised to drive light motor commercial vehicle i.e., Mahindra Maxi Cab? Hon'ble Apex Court has answered the issue in favour of insured and held that Insurance Company is liable to indemnify the claim. Tribunal in the said case held that person possessing the licence to drive light motor vehicle is entitled to drive Mahindra Maxi Cab which was also a passenger vehicle. The said vehicle namely Mahindra Maxi Cab is undisputedly a Light Motor Vehicle which was being used for commercial purposes. Non obtaining an endorsement to drive the commercial vehicle was held would not be a ground for the insurer to be absolved of its liability. Smt.Kalpana, learned Advocate would fairly admit that vehicle involved in the present case is "light goods vehicle". However she would contend that Insurer has failed to discharge its burden to prove that driver of the offending vehicle did not possess a valid licence. Smt.Kalpana, learned Advocate would fairly admit that vehicle involved in the present case is "light goods vehicle". However she would contend that Insurer has failed to discharge its burden to prove that driver of the offending vehicle did not possess a valid licence. She would submit that driver was possessing a licence to drive light motor vehicle and as such, contention of the insurer should not be accepted. Whereas in the instant case the distinction is between two classes of vehicles namely "Non Transport Vehicle' and 'Goods Vehicle which, is a transport vehicle. The Central Motor Vehicle Rules provides for issue of licence separately or combined to the said class of vehicle. Hence, I am of the considered view that said Judgment would not come to the assistance of claimants. 41. Goods carriage has been defined under Section 2(14) of Motor Vehicles Act, 1988 to mean any motor vehicle constructed or adopted for use solely for the carriage of goods or any motor vehicle not so constructed or adopted when used for the carriage of goods. The insurance policy - Ex.R-1 issued to the offending vehicle would clearly indicate that said policy has been issued to goods carriage vehicle. The driver of the offending vehicle undisputedly did not possess effective licence to drive light goods vehicle. In fact, the licence - Ex.R-2 issued to the driver of the offending vehicle would also indicate that it was granted for a period of 20 years to drive 'light motor vehicle non- transport*. In other words, he did not possess a valid licence to drive light goods vehicle. Section 10 of the MV Act would indicate there is a distinction between 'light motor vehicle' and 'transport vehicle' as found in clause (d) & (e) of sub-section (2) of section 10 which distinction was not found in pre-amended Motor Vehicles Act. Thus, the distinction is clear and evident. The licence in question having been granted for a period of 20 years, would be an indicator of the fact that it was meant for the purpose of driving a vehicle other than a transport vehicle. In the event of driving licence had been granted to drive transport vehicle, the period thereof would not have been more than three years as stipulated under Section 14(2)(a). In the event of driving licence had been granted to drive transport vehicle, the period thereof would not have been more than three years as stipulated under Section 14(2)(a). Condition stipulated under the policy in question namely, Ex.R-1 that insured vehicle should be driven by a person holding valid and effective driving licence, claimant cannot contend that it does not amount to breach of terms of policy. Hence, there being a clear breach of condition of the policy issued to the offending vehicle, insurer was fully within its rights to raise such a plea and seek for being absolved of its liability. 42. Now turning my attention as to whether the insurer is liable to pay and then recover the said amount from the insured is concerned by considering the argument advanced by learned Advocate appearing for the claimants, it requires to be noticed that when insurer having raised a defence as provided under Section 149(2) and successfully proved that it is not required to indemnify the claim, it cannot be saddled with the liability to pay the amount and recover the same from the insured. In fact, the Hon'ble Apex Court in NATIONAL INSURANCE CO.LTD vs KUSUM RAI & OTHERS reported in 2006 ACJ 1336 has held that though Tribunal and High Court committed an error in fastening the liability on the insurer since the driver of the offending vehicle was not possessing a valid licence, it directed the insurance company to pay and recover the same in the peculiar facts of the said case and in exercise of its jurisdiction under Article 136 of Constitution of India and as such, Hon'ble Apex Court directed the insurer to pay the amount and recover the same from the owner. 43. Infact the Hon'ble Apex Court in Swaran Singh's case referred to supra after directing the insurance companies to satisfy the awards and granting leave to recover the same from owners of the offending vehicle, held that such direction should not be construed as a precedent. In the words of their Lordships it reads as under: "100. Although, as noticed hereinbefore, there are certain special leave petitions wherein the persons having (sic. driving) the vehicles at the time when the accidents took place did not hold any licence at all, in the fact's and circumstances of the case, we do not intend to set aside the said awards. Although, as noticed hereinbefore, there are certain special leave petitions wherein the persons having (sic. driving) the vehicles at the time when the accidents took place did not hold any licence at all, in the fact's and circumstances of the case, we do not intend to set aside the said awards. Such awards may also be satisfied by the petitioners herein subject to their right to recover the same from the owners of the vehicles in the manner laid down therein. But this order may not be considered as a precedent". Thus, contention of Smt.P.V.Kalpana that Apex Court has laid down the principle of "Pay and Recover" to be universally applied to ail the claims is fraught with fallacy and not tenable in view of the fact that Hon'ble Apex Court itself holding that it should not be construed as a precedent as noticed herein above. Hence, plea raised in this regard stands rejected at this stage itself. 44. As to whether the insurer having been absolved of its liability can still be directed to pay the amount and recover the same from the insured came up for consideration before Division Bench of this Court in the case of ORIENTAL INSURANCE CO. LTD vs K.C. SUB RAMANYAM & ANOTHER reported ILR 2012 KAR 5241 and it has been held as follows: "82. From the above discussion, what follows is:- (a) If the vehicle involved in the accident is duly insured and the insurer has issued the certificate of insurance as provided under Sub- Section (3) of Section 147, the liability of the insurer to satisfy the claim awarded under Section 147(l)(b) is absolute. Once the claimant issues the notice to the insurer in his claim petition and thereafter the Claims Tribunal passes an award, the insurer by virtue of Section 149(1) steps into the shoes of judgment debtor; that is steps into the shoes of the insured and is bound to pay the amount awarded to the third party. The liability is created under the statute. (b) When the notice is issued under Section 149(2), the insurer gets a right to defend the action, that is the action, brought by the claimants. He can defend the action only on the grounds mentioned in Sub- Section (2) of Section 149. No other grounds are available to the insurer. The liability is created under the statute. (b) When the notice is issued under Section 149(2), the insurer gets a right to defend the action, that is the action, brought by the claimants. He can defend the action only on the grounds mentioned in Sub- Section (2) of Section 149. No other grounds are available to the insurer. (c) If the defence of the insurer is that under the terms of the policy he has restricted his liability to indemnify a particular amount and is not liable to pay the amount as statutorily provided under Section 147 (1) (b), though he is entitled to such a defence, the Tribunal or Court shall ignore the said restrictive clause in the policy and pass a decree or award directing payment of compensation in terms of Section 147(1) (b) of the Act. The insurer shall satisfy the decree or award. On such satisfaction, the insurer gets the right to recover the amount which was not liable to be paid under the policy from, the insured. (d) Similarly if the amount paid by the insurer in terms of the award or decree is in excess of the amount agreed to be paid under the policy, the insurer gets a right under sub-section (5) of Section 149 to recover the same from the insured after paying the said amount to the third party. (e) The condition precedent for application of the rule 'pay and recover' is, there should be a valid policy of insurance and there is no breach of the terms and conditions of the policy. The dispute is regarding the nature and quantum of liability to be satisfied. If the contract restricts the liability to a particular sum, when the Statute provides for payment of a higher sum, then the liability is not in dispute. It is the quantum, which is in dispute. Therefore, the Legislature advisedly expressed this principle of pay and recover in Sub-Sections (4) and (5) of Section 149 and directed, the insurer to pay the amount awarded or decreed and recover the excess amount from the insured. In other words, this principle of pay and recover applies to cases, which fall under Sub- Section (4) and (5) of Section 149 only. In other words, this principle of pay and recover applies to cases, which fall under Sub- Section (4) and (5) of Section 149 only. (f) The Legislature consciously has not conferred such a right or obligation while dealing with the cases of breach of terms of the agreement or cases in which the statutory grounds mentioned in Section 149(2) are established. Such a provision is conspicuously missing in Section 149(2) or in Section 149(1). On the contrary, the express provision under Section 149(7) has been introduced. The purport of sub-Section (7) of Section 149 is if the claimant has issued notice to the insurer and if the insurer wants to avoid the liability under Sect on 149(1), he is at liberty to do so by establishing the grounds mentioned in Section 149(2). If these grounds are established, then there is no liability on the part of the insurer to pay the amount decreed or awarded under Section 149 (1). When the liability itself is not there or when the liability is avoided on one of the grounds mentioned in Section 149(2), there is not liability to pay the amount decreed or awarded. When there is no liability to pay or satisfy the award or decree, the question of directing the insurer in those circumstances to pay and recover would not arise. (g) The Apex Court after holding that the insurer has no obligation to pay, but still has directed the insurer to pay and recover from the insured. Such a direction is issued by virtue of the power conferred, on the Apex Court under Article 142 of the Constitution, which power neither this Court nor the Tribunal can exercise. (h) Therefore, it is not the law laid down by the Apex Court under Article 141 of the Constitution that when the insurer is not liable to pay still he can be directed to pay and recover. (i) In fact, one of the Benches of the Supreme Court, doubting the correctness of this practice in the Supreme Court of directing pay and recover by exercising the power conferred under Article 142 of the Constitution, has referred the matter to a larger Bench. We have not interpreted in this case the scope and ambit of Article 142 of the Constitution. We are strictly confining our jurisdiction to interpret the statutory provisions in the light of the judgments of the Supreme Court." 45. We have not interpreted in this case the scope and ambit of Article 142 of the Constitution. We are strictly confining our jurisdiction to interpret the statutory provisions in the light of the judgments of the Supreme Court." 45. In the light of the law laid down by Hon'ble Apex Court in SWARAN SINGH's case that pay and recovery ordered therein may not be considered as a precedent and law laid d own by the Division Bench that when there is no liability on insurer, question of directing the insurer to pay and recover does not arise. I am not inclined to accept the contention raised by the learned Advocate appearing for the claimants that in the instant case insurer should be directed to pay the award amount and recover the same from owner. Hence, point No.(1) formulated herein above is answered in favour of the insurer and against the claimants. RE: POINT NO.(2): 46. As already noticed herein above, the Tribunal after considering the pleadings and evidence on record has awarded compensation of Rs.3,48,000/- to the claimant in MVC 5018/2009 (MFA No3157/2011) i.e., to the injured and a sum of Rs.6,21,000/- to the claimants namely, the legal heirs of deceased in MVC No.5019/2009 (MFA No.3158/2011). RE: MFA No.3156/2011 (MVC No.5019/2009): 47. In this appeal, legal heirs of the deceased are seeking for enhancement of compensation towards 'loss of dependency' contending that income of the deceased ought to have been taken at Rs. 10,000/- per month and not Rs.3,000/- per month. Award in question would indicate that Tribunal has not deducted any amount from out of the monthly income of the deceased towards her personal and living expenses and has considered her net income at Rs.3,000/- per month while computing the compensation towards loss of income/dependency'. I do not find any infirmity in the said computation. The compensation awarded towards 'loss of consortium', love and affection' to the children and compensation towards 'transportation of dead body' and 'funeral expenses' are also just and reasonable and it does net call for enhancement. RE: MFA 3157/2011 (MVC No.5018/2009): 48. Injured is the claimant in this appeal. It is his contention that compensation awarded under all heads are abysmally on the lower side and it requires to be enhanced. RE: MFA 3157/2011 (MVC No.5018/2009): 48. Injured is the claimant in this appeal. It is his contention that compensation awarded under all heads are abysmally on the lower side and it requires to be enhanced. The evidence on record would indicate that claimant had sustained fracture of right humerus, radial nerve palsy and comminuted fracture distal end of right radius. Doctor who has treated the claimant has been examined as P.W.2. He has opined the disability to the right upper limb to be at 36% and whole body disability at 12%. As such, the Tribunal has taken the disability so assessed by the Doctor into consideration while assessing compensation towards loss of future income' and loss of income during laid up period' which is just and reasonable. In the absence of any positive evidence to establish the income of the claimant, Tribunal has based its conclusion on the oral evidence of the claimant namely that he is a tailor by profession and also the date of accident being 30 06.2009 to construe his income at Rs.5,000/- per month and accordingly determined the loss of future earning'. Said finding is based on proper appreciation of evidence. Compensation awarded by the Tribunal under other heads are also just and reasonable and it does not call for any enhancement. Accordingly, point No.(2) is answered in the affirmative. 49. In the result, following order is passed: (1) Appeals are hereby dismissed. (2) Judgment and awards passed by MACT, Bangalore dated 02.09.2010 in MVC Nos 5018/2009 and 5019/2009 are hereby affirmed. (3) Registry is directed to re-transmit the records to the jurisdictional Tribunal. (4) No costs.