IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. FAO No. 2457 of 2005 Date of decision: 04.10.2010 National Insurance Co. Ltd. ..Appellant Versus Shamsher Singh & Ors. ..Respondents CORAM: HON'BLE MR. JUSTICE K. KANNAN Present: Mr. Vinod Gupta, Advocate for the appellant. None for respondents. **** K. KANNAN, J.(ORAL) 1. The Insurance Company is the appellant challenging the award of the Tribunal which found that the driver did not have a valid and effective licence on the date of accident namely on 31.3.1997 but still did not secure to the insurer the right of recovery of the award against the insured. 2. It was clearly in evidence that on the date when the accident took place the driver's licence had already expired and he had obtained a renewal only subsequently on 31.3.1997. If the renewal of a license had not been made within 30 days from the date of expiry as provided under Section 15 of Motor Vehicles Act and the renewal was effected subsequent to the accident, the insured cannot be made liable. This position is also explained by the Supreme Court in several decisions and particularly in the decision in National Insurance Company Ltd. Versus Jarnail Singh (2007) 15 SCC 28 and the decision in New India Assurance Co. Ltd. Versus Suresh Chander Aggarwal 2009 15 SCC 761 . FAO No. 2457 of 2005 -2- 3. The Tribunal was in error in holding that so long as the driver had not been disqualified from holding a valid license and had obtained a renewal subsequently, the driver must be taken as duly licenced. The insurer's liability shall be only to satisfy the claimants and shall have a right of recovery from the insured. The appeal is allowed to that extent. (K. KANNAN) October 04, 2010 JUDGE Poonam(II)