Case: New India Assurance Company Limited Vs. Mandar Madhav Tambe and Others

that Jaysing Jadhav could not be the driver for the purpose of the policy. But the proviso does not halt there. It adds an independent clause after employing the disjunction or. If the clause after the disjunction or is taken note of, it permits a person who had held a permanent driving licence and who was not disqualified to be a driver of the vehicle. In other words, a person once duly licensed and not disqualified is not excluded from being a driver of the vehicle. ( 13 ) UNDOUBTEDLY, Mr. Trivedi relied on the words of this part so as to contend that such a person must be the holder of a permanent driving licence other than a learners licence, but as we have seen, the category of licences does admit the holder of a permanent driving licence and statutes like the provisions of section 96 (2) (b) (ii) of the Act use the phrase duly licensed that includes even the holder of a learners licence. The intention of the latter clause in the provise of the policy, with which we are concerned, is obvious, in that if the person had held a licence or as such was duly licensed and is not disqualified from holding such a licence, then he could be the driver of the vehicle. If this intention is discernible in the second part of the proviso, then on the facts available in the present case, it can be said that the driver of the vehicle had held a learners licence and was not disqualified from holding such a licence. Such a driver was consequently not excluded by the terms of the policy. What appears to us obvious from the terms of the latter clause of the proviso is that the emphasis is on the holder of the licence who is not disqualified to hold such a licence. This intent is inferable because the first part of the proviso deals with the holder of the licence as such which would include the holder of a learners licence. The second part can be read reasonably so as to include those classes of cases where the licence was not actually in force and was not held but was once held and there was no disqualification from holding such a licence. No doubt, there is much force in the submissions of Mr. Trivedi that this part of the proviso refers to a permanent driving licence and excludes a learners licence for the purpose of capacity along with the want of disqualification. But, as we have indicated, to so read the clauses would be reading something which is not in existence in law, in that a permanent driving licence and to exclude the licensing process as not covered by the learners licence. Furthermore, if for the first part the learners licence could be the part of the licensing, we fail to see how it would not form part of the latter clause. In the light of the provisions of section 96 (2) (b) (ii) of the Act, it is consistent to read the disjunctive part as intending and operating upon the disqualification of drivers who had once been duly licensed. The driving of a vehicle by such a person, we think, who has duly licensed and who was not disqualified is not at any rate clearly excepted by Clause (3) (b) of the General Exceptions available in the policy. ( 14 ) AS we have indicated above, Jaysing Jadhav did hold a licence in 1977 and immediately after the accident within a few days was given a regular income. There is no evidence of his disqualification to hold such a licence. Therefore, he would be in the permissive category of the drivers and as such not excepted by the conditions of the policy. At any rate, we feel by use of the words a permanent driving licence (other than a learners licence) and is not disqualified from holding such a licence, an ambiguity is introduced by the latter part of the proviso, the advantage of which cannot be taken by the Insurance Company while setting up the statutory defence under section 96 (2) (b) (ii) of the Act. The burden to establish the limited defence in law is on the Insurance Company and it has to satisfactorily and beyond ambiguity establish that there had been a breach of the specified condition of the policy which imposes the condition excluding driving by the persons of the kind mentioned by section 96 (2) (b) (ii) of the Act. Here we find, by reason of the latter part, that person who once held a licence and are not disqualified are permitted to be the drivers. If they are so permitted, the exclusion contemplated by sub-clause (ii) cannot be easily read. If there be ambiguity, the defence of the kind taken by the Insurance Company would not be upheld. ( 15 ) GENERALLY stated, such clause of the policy should receive the interpretation consistent with the intent of the parties to the contract and also to further the objects of the statute. This should particularly be so when contracts are in printed form and issued in usual course. If we were to go by the terms of section 96 (2) (b) (ii) of the Act, the exclusion could be of the persons who are not duly licensed or of the persons who had been disqualified, as is mentioned therein. To be within it, the terms of the policy should be specific. The terms of the present proviso are differently worded; and, possibly, do admit a position that the drivers who were once licensed and are not disqualified are not specifically excluded. We would prefer to interpret such a term in the policy document in the light of the purposes of the statute which makes a provision for indemnifying causes involving third parties in accidents and for satisfaction of claims arising therefrom in favour of the party affected rather than to absolve the insurance indemnity.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]( 9 ) IF this be the position with regard to the learners licence, we do not think that it will be appropriate to treat the holder of a learners licence as not duly licensed for the purpose ofe (ii) of Clause (b) ofn (2) of section 96 of the Act on which reliance is placed. It will be in keeping with the purposes of that section to give the words duly licensed their ordinary and normal meaning, particularly when the law itself has not excluded the licence of a learner from the category of licences. We are inclined thus to hold that the term duly licensed would include a holder of a learners licence. No good reason exists to limit the phrase to the holder of regular licence( 10 ) IN this, we are in respectful agreement with the view expressed in the Tilak Rams case (supra) by the Himachal Pradesh High Court. The other decisions cited at the Bar are distinguishable on their own facts. It is ample to observe that we are mainly concerned with the terms of the policy at Exh. 159 so as to find out whether it successfully excludes driving by a person as is contemplated by the provisions of section 96 (2) (b) (ii) of the Act. In other words, if the driving is permitted by a person who once held that licence and was not disqualified, there would be no exclusion as is contemplated by the provisions of that clause.( 11 ) HAVING settled this position, we have to turn to the proviso in the policy for finding out exclusion and on which Mr. Trivedi heavily relies. This proviso, added below the column concerning as to who could be the driver of a vehicle, is of qualifying character. It is not in the nature of general exception. In other words, it is, in fact, a definitive provision. Provisos of such kind are intended to lay down the conditions or qualifications which will operate on the subject already mentioned. Any person who would satisfy either of the conditions of the proviso would be the Driver in terms of this policy. Being a part of the policy and which is to be read in the light and context of the provisions of section 96 (2) (b) (ii) of the Act, effort should be to find out as to whether the exclusion of a driver who had held a licence and was thus duly licensed and was not disqualified has or has not been excluded.( 12 ) NOW, as far as the first part of the proviso is concerned, undoubtedly, it does not admit any debate that the exclusion is clearly set out and is also made out, in that a person who was holding no valid driving licence at the time of the accident would not be in the contemplation of the policy to be a driver. In such a case, exclusion would be complete. Had the matter stood at this first part along with the general exceptions extracted above, then the answer would be clear that Jaysing Jadhav could not be the driver for the purpose of the policy. But the proviso does not halt there. It adds an independent clause after employing the disjunction or. If the clause after the disjunction or is taken note of, it permits a person who had held a permanent driving licence and who was not disqualified to be a driver of the vehicle. In other words, a person once duly licensed and not disqualified is not excluded from being a driver of the vehicle( 13 ) UNDOUBTEDLY, Mr. Trivedi relied on the words of this part so as to contend that such a person must be the holder of a permanent driving licence other than a learners licence, but as we have seen, the category of licences does admit the holder of a permanent driving licence and statutes like the provisions of section 96 (2) (b) (ii) of the Act use the phrase duly licensed that includes even the holder of a learners licence. The intention of the latter clause in the provise of the policy, with which we are concerned, is obvious, in that if the person had held a licence or as such was duly licensed and is not disqualified from holding such a licence, then he could be the driver of the vehicle. If this intention is discernible in the second part of the proviso, then on the facts available in the present case, it can be said that the driver of the vehicle had held a learners licence and was not disqualified from holding such a licence. Such a driver was consequently not excluded by the terms of the policy. What appears to us obvious from the terms of the latter clause of the proviso is that the emphasis is on the holder of the licence who is not disqualified to hold such a licence. This intent is inferable because the first part of the proviso deals with the holder of the licence as such which would include the holder of a learners licence. The second part can be read reasonably so as to include those classes of cases where the licence was not actually in force and was not held but was once held and there was no disqualification from holding such a licence. No doubt, there is much force in the submissions of Mr. Trivedi that this part of the proviso refers to a permanent driving licence and excludes a learners licence for the purpose of capacity along with the want of disqualification. But, as we have indicated, to so read the clauses would be reading something which is not in existence in law, in that a permanent driving licence and to exclude the licensing process as not covered by the learners licence. Furthermore, if for the first part the learners licence could be the part of the licensing, we fail to see how it would not form part of the latter clause. In the light of the provisions of section 96 (2) (b) (ii) of the Act, it is consistent to read the disjunctive part as intending and operating upon the disqualification of drivers who had once been duly licensed. The driving of a vehicle by such a person, we think, who has duly licensed and who was not disqualified is not at any rate clearly excepted by Clause (3) (b) of the General Exceptions available in the policy.( 14 ) AS we have indicated above, Jaysing Jadhav did hold a licence in 1977 and immediately after the accident within a few days was given a regular income. There is no evidence of his disqualification to hold such a licence. Therefore, he would be in the permissive category of the drivers and as such not excepted by the conditions of the policy. At any rate, we feel by use of the words a permanent driving licence (other than a learners licence) and is not disqualified from holding such a licence, an ambiguity is introduced by the latter part of the proviso, the advantage of which cannot be taken by the Insurance Company while setting up the statutory defence under section 96 (2) (b) (ii) of the Act. The burden to establish the limited defence in law is on the Insurance Company and it has to satisfactorily and beyond ambiguity establish that there had been a breach of the specified condition of the policy which imposes the condition excluding driving by the persons of the kind mentioned by section 96 (2) (b) (ii) of the Act. Here we find, by reason of the latter part, that person who once held a licence and are not disqualified are permitted to be the drivers. If they are so permitted, the exclusion contemplated bye (ii) cannot be easily read. If there be ambiguity, the defence of the kind taken by the Insurance Company would not be upheld.( 15 ) GENERALLY stated, such clause of the policy should receive the interpretation consistent with the intent of the parties to the contract and also to further the objects of the statute. This should particularly be so when contracts are in printed form and issued in usual course. If we were to go by the terms of section 96 (2) (b) (ii) of the Act, the exclusion could be of the persons who are not duly licensed or of the persons who had been disqualified, as is mentioned therein. To be within it, the terms of the policy should be specific. The terms of the present proviso are differently worded; and, possibly, do admit a position that the drivers who were once licensed and are not disqualified are not specifically excluded. We would prefer to interpret such a term in the policy document in the light of the purposes of the statute which makes a provision for indemnifying causes involving third parties in accidents and for satisfaction of claims arising therefrom in favour of the party affected rather than to absolve the insurance indemnity.