IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.763 of 2005 (O&M) Date of decision:22.07.2010 New India Assurance Company Limited ....Appellant versus Rani and others ...Respondents CORAM: HON’BLE MR. JUSTICE K. KANNAN ---- Present: Mr. Vinod Gupta, Advocate, for the appellant. None for the respondents. ---- 1. Whether reporters of local papers may be allowed to see the judgment ? Yes. 2. To be referred to the reporters or not ? Yes. 3. Whether the judgment should be reported in the digest ? Yes. ---- K.Kannan, J. (Oral) 1. The Insurance Company is in appeal challenging the award on the ground that the driver was shown not to have a valid driving licence by summoning the officer from the licensing authority as well as the register. The evidence adduced was to the effect that no such licence at all had been issued from their office to the driver. 2. The Tribunal still found that the issue of driving licence was irrelevant since the claim was made under Section 163-A. The application of the Section 163-A does not eclipse the defences available to the Insurance Company under Section 149(2) of the MV Act. If the driver or the owner had no explanation to give for the evidence tendered FAO No.763 of 2005 (O&M) - 2 - through RW-2, the official from the licensing authority, then the insurer cannot be made to indemnify the insured for what was evidently a violation of the terms of the policy. 3. The award of the Tribunal is modified to make the insurer liable only for the payment to the claimants with the right of recovery against the insured. 4. The appeal is allowed to the above extent. (K.KANNAN) JUDGE 22.07.2010 sanjeev