FAO No.591 of 1998 -1- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.591 of 1998 Date of Decision.19.07.2010 The New India Assurance Co. Ltd. through Sh. K.B. Bindal, Asstt. Manager, its duly Constituted Attorney Regional Office, Sector 17-A, Chandigarh .........Appellant Versus Naib Singh s/o Wazir Singh and others .......Respondents 2. C.R. No.2769 of 1998 The New India Assurance Co. Ltd. through Sh. K.B. Bindal, Asstt. Manager, its duly Constituted Attorney Regional Office, Sector 17-A, Chandigarh .........Appellant Versus Mela Singh s/o Mal Singh and others .......Respondents Present: Mr. Inderjit Sharma, Advocate for the appellant. None for the respondents. CORAM:HON'BLE MR. JUSTICE K. KANNAN 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. Both the appeal and civil revision address the same issue of non-liability of the insurance company in spite of proof that the driver did not have a valid driving licence. The Tribunal held that the licence was a fake, having regard to the evidence placed by summoning the relevant register and examining officers from the licensing authority. In spite of the same, there was no provision for FAO No.591 of 1998 -2- a recovery in the award. 2. The fact that the driver did not have a valid driving licence is a defence available under Section 149(2) of the Motor Vehicles Act. The Tribunal ought to have provided for a liability to make the payment to the claimant with a right of recovery in the manner done by the Hon'ble Supreme Court in New India Assurance Co., Shimla v. Kamla,(2001) 4 SCC 342. 3. Under the circumstances, the Insurance Company shall not be liable to indemnify the insured. The liability is to satisfy the claim under the award with a right of recovery against the insured. The award of the Tribunal is modified and the appeal allowed to the above extent. 4. The civil revision is also allowed on the same terms. (K. KANNAN) JUDGE July 19, 2010 Pankaj*