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2019 DIGILAW 2749 (RAJ)

National Insurance Co Ltd v. Nathi

2019-10-23

PUSHPENDRA SINGH BHATI

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JUDGMENT Pushpendra Singh Bhati, J. - This appeal under Section 30 of Workmen's Compensation Act, 1923 has been filed for the following reliefs :- "It is, therefore, most humbly and respectfully prayed that this appeal may kindly be allowed, the impugned Award/Judgment dated 26.3.2008 passed by the learned Commissioner below be set aside and the claim petition be ordered to be dismissed as against the appellant with costs throughout, and in the alternative the awarded compensation may please be reduced substantially besides shifting the entire liability of interest on the respondent-insured." 2. Counsel for the appellant-Insurance Company raised a substantial question of law that the Insurance Company shall be liable to indemnify the driver having expired licence at the time of accident ?. 3. Counsel for the respondent has shown judgment passed by Hon'ble Delhi High Court dated 01.3.2016 in Sheela Rani Vs. National Insurance Co. Ltd. & Ors., particularly, the observation made by Hon'ble Court that 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. 4. Counsel for the appellant controverted the judgment by relying upon the judgment of Hon'ble Supreme Court in the case of Ishwar Chandra & Ors. Vs. Oriental Insurance Co. Ltd. & Ors., (2007) 10 SCC 650 , which lays down that if driver was having expired licence at the time of accident, then the Insurance Company shall not be liable to indemnify the owner. 5. This Court after hearing counsel for the parties and perusing the precedent law of Ishwar Singh (supra), which is a case of expired licence, deems it appropriate to allow the appeal. Accordingly, the appeal is allowed. The Insurance Company need not to indemnify the owner. Further, as the compensation awarded has already been disbursed, therefore, the principle of 'pay and recovery' shall apply and the Insurance Company shall be entitled to recover the amount in-question from the owner with interest @ 12% per annum from the date of filing of claim petition till actual payment is made.