FAO No.2392 of 2007(O&M) -1- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.2392 of 2007(O&M) Date of Decision. 19.08.2010 Unity of Man, Kirpal Sagar, near Rahon, Tehsil and District Nawanshahr through its Chairman, Dr. Kamaljit Singh (owner of canter No.407, Tata No.PB-10-M-9845) and another ......Appellants Versus The New India Assurance Company Ltd., Nawanshahr others ......Respondents Present: Mr. Sanjay Gupta, Advocate for the appellants. Mr. V. Ramswaroop, Advocate for respondent No.1. None for respondents No.2 to 6. 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) C.M. No.19993-CII of 2010 Application is allowed. Objections against the report dated 07.01.2009 submitted by MACT Nawanshahr are taken on record. FAO No.2392 of 2007 1. The appeal is filed by the owner and driver of the vehicle involved in the accident challenging the award passed by the Tribunal against them on the ground that the vehicle in question had been insured with respondent No.1-insurance company and the driver of the vehicle was in possession of a valid and effective FAO No.2392 of 2007(O&M) -2- driving licence. The burden of proof which was squarely on the insurer had admittedly not been discharged at the trial and therefore, when the matter was pending in appeal, the insurer appears to have moved to Court for evidence and this Court had directed the parties to adduce evidence before the Tribunal and had called for a report. Before the Tribunal, the insurance company had secured the summoning of the relevant record from the licence issuing authority as well as a witness and proved substantively that the licence produced by the driver was fake. This issue does not simply rest there, for when such an evidence was tendered, the owner himself had given evidence to the effect that at the time when he gave employment, he had ascertained to himself that the driver had a licence and further believed the licence to be true and after taking the driving test that the driver knew driving, he had appointed him. This bona fide belief shall sufficiently protect the owner to get fully indemnified as laid down by the decision of the Hon'ble Supreme Court in National Insurance Co. Ltd. v Swaran Singh (2004) 3 SCC 297. Although the Tribunal had collected the evidence to show that the licence was fake, the insurance company shall still be liable to indemnify the insured, for he has not been shown to have committed a breach of terms of the policy. 2. The award of the Tribunal is modified to the extent of making the Insurance Company liable to indemnify the insured fully. The appeal is allowed to the above extent. (K. KANNAN) JUDGE August 19, 2010 Pankaj*