FAO No.2543 of 2003 1 IN THE HIGH COURT OF PUNJAB & HARYANA, CHANDIGARH FAO No.2543 of 2003 Date of decision July 8, 2010 The New India Assurance Company Limited ....... Appellant Versus Smt. Shanti Devi and others ........ Respondents CORAM: HON'BLE MR. JUSTICE K. KANNAN ***** Present:- Mr. K. K. Verma , Advocate for Mr. Raj Kumar Bashamboo, Advocate for the appellant. None for the respondents. **** 1. The appeal is filed by the Insurance Company denying the liability on the ground that on the relevant date of the accident on 22.9.2001 the driver did not have valid license and the renewal came about subsequently. The Tribunal reasoned that since he was not shown to be disqualified to hold the license, the insurer will still be liable. This conflicts with the law laid down by the Hon'ble Supreme Court in National Insurance Company Vs. Jarnail Singh (2007) 15 SCC 28 that held with reference to Section 15 (1) of the Motor Vehicle Act that if the licence has not been renewed within a period of 30 days, the driver cannot be said that subsequent renewal must relate back to the date of original issue. By the date of accident, certainly the driver did not have a valid licence and that is good enough to plead that it is not bound to indemnify the insured. 2. The award of the Tribunal is set aside insofar as it releases the liability on the insured. The Insurance Company shall be FAO No.2543 of 2003 2 liable to satisfy the award of the claimant but it shall have the right of recovery against the insured. The appeal is allowed to the above extent. (K. KANNAN) JUDGE July 8, 2010 archana