FAO No. 2030 of 2008 1 IN THE HIGH COURT OF PUNJAB & HARYANA, CHANDIGARH FAO No. 2030 of 2008 Date of decision January 24, 2011 National Insurance Co. Ltd. ....... Appellant Versus Chaman Lal and others ........Respondents CORAM: HON'BLE MR. JUSTICE K. KANNAN Present:- Mr. Navin Kapur, Advocate for the appellant. Mr. Sanjeev Sharma , Advocate for the respondent Nos. 1 to 4. Mr. H. S. Baath, Advocate for respondent Nos. 5 and 6. **** 1. Whether reporters of local papers may be allowed to see the judgment ? 2. To be referred to the reporters or not? 3. Whether the judgment should be reported in the digest? K. Kannan, J (oral). 1. The appeal is filed by the Insurance Company challenging the liability on the ground that the driver of the vehicle that was involved in the accident had only the Light Motor Vehicle license when the offending vehicle was a Heavy Goods Vehicle. The Tribunal relied on the judgment in National Insurance Company Ltd. Vs. Swaran Singh and others 2004 3 SCC 297 to say that there was no fundamental breach in the terms of the policy by the driver being allowed to drive a Heavy Goods Vehicle. Swarn Singh's case regarding the insurer's liability for fundamental breach was set in the context where the issue of negligence FAO No. 2030 of 2008 2 itself is irrelevant, such as, when there was an Act of God or an accident arising due to mechanical defect where the issue of driving license is irrelevant. Here the vehicle involved in the accident was Heavy Goods Vehicle which required also a transport vehicle endorsement under Section 3 of the Motor Vehicles Act. The driver could not be taken as duly licensed and the liability of the insurer to provide indemnity to the insured was clearly wrong. The award of the Tribunal is modified to make the insurer liable only to satisfy the claim of the claimants and secure the right of recovery against the owner insured. The appeal is allowed to the above extent. (K. KANNAN) JUDGE January 24, 2011 archana