FAO No.304 of 1995 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ***** FAO No.304 of 1995 Date of decision : 29.9.2010 National Insurance Co. Ltd. ..........Appellant Vs. Kelapat and others .........Respondents CORAM : HON'BLE MR. JUSTICE K.KANNAN Present:- Mr. L.M.Suri, Senior Advocate, alongiwht Mr.Deepak Suri, Advocate, for the appellant None for the respondents --- K.KANNAN, J (ORAL) :- 1. The Insurance Company challenges the liability cast on it on the ground that the driver did not have a valid driving licence. A copy of the licence has produced by the driver in July 1994 and in the cross examination it was suggested that the driving licence was fake. The licence also bore endorsement of renewal, which was to have been effected by the Licensing Authority at Fatehgarh. The Tribunal relied on a decision of this Court in National Insurance v. Sucha Singh to hold that when the renewal was genuine, the fact is that the original licence was FAO No.304 of 1995 -2- fake, was itself not of any relevance. This position has undergone a change with the decision by the Hon'ble Supreme Court in United Indian Assurance v. Devinder Singh, 2007 (8) ACC 342'. 2. The contention of the learned counsel for the Insurance Company is that the document was filed only in July 1994 and by the time the verification of the licence was made, the award had been issued in August 1994. The contention is that thereafter, a report was obtained to say that the driving licence that had been issued originally from Rajasthan, was fake. The learned counsel pleads for an opportunity to adduce evidence with reference to the genuineness of the licence. 3. The defence that a particular driving licence at the relevant time was not genuine, is permissible under Section 149 (2) of the Act and I am of the view that the insurer shall have an opportunity to prove its contention and the reason for non- production of appropriate evidence was only due to the delay in production of the copy of the licence at the Trial Court by the driver. The law was also challenged with reference to the effect of renewal of a fake licence. These factors are justification enough for an adjudication to be effected in the light of evidence and the position of law now stated. The award of the Tribunal in so far as it cast the liability on the insurer without providing for a right of recovery against the insured, is set aside. The matter is FAO No.304 of 1995 -3- remitted to the Tribunal Hisar for a fresh adjudication on validity of the driving licence of the driver at the relevant time of the accident. The claimant's right under the award and their entitlement to enforce the same against the insurer is maintained and it shall not be necessary for the claimants to be associated in the enquiry after remand. The issue survives adjudication only for settling the inter-se dispute between the insurer and the insured. 4. Appeal is allowed to the above extent. Parties shall apear before the Tribunal at Hisar on 15.11.2010. (K.KANNAN) JUDGE 29th Sep., 2010 akm