Case: Rakesh Kumar  Vs. United India Insurance Company Ltd. And Ors. Etc. Etc

4. On 16.09.2008, Sheo Ram, Madan Mohan, and Mohindro Devi along with others were traveling in a three wheeler bearing Registration No. PH-11TC-468 from Naraingarh to Shahzadpur. Madan Mohan was driving the three wheeler on the left side of the road. At about 10.30 a.m., when the three wheeler reached near Bus stop of Village Bharanpur on Naraingarh Shahzadpur Road, a truck bearing Registration No. HR-37-C-7937, which came from the opposite side, struck the three wheeler. Though its driver Madan Mohan tried to avoid the accident by taking his vehicle on the extreme left side of the road, yet all the occupants of the three wheeler suffered multiple injuries. The injured were taken to Civil Hospital, Naraingarh in private vehicles. Thereafter, Sheo Ram was referred to PGI Chandigarh where he succumbed to his injuries. A criminal case bearing FIR No. 88 dated 16.09.2008 was registered against Jaipal, driver of Truck No. HR-37-C-7937 at the Police Station, Shahzadpur, District Ambala for the commission of offence punishable under Sections 279/337/304-A of the Indian Penal Code, 1860 (hereinafter referred to as "the Code). Madan Mohan, another injured, who was driver of the three wheeler also died later at Civil Hospital, Naraingarh. Smt. Mohindro Devi, the third injured, also suffered a number of injuries in the accident and was shifted to Civil Hospital, Naraingarh but later she also died.5. The legal representatives of Sheo Ram filed claim petition being MACT Case No. 97/2008, the legal representatives of Madan Mohan filed claim petition being MACT Case No. 109 of 2008 and legal representatives of Mohindro Devi filed claim petition being MACT Case No. 28 of 2009 before the MACT (in short "the Tribunal), Ambala under Section 166 of the Motor Vehicle Act, 1988 against the owner, driver and insurer of offending vehicle, i.e., HR-37-C-7937 claiming compensation for a sum of Rs. 20,00,000/-, Rs. 20,00,000/-and Rs. 10,00,000/- respectively.6. It was contested by the non-applicants. One of the defence of Insurance Company (R-3 therein) was that the driver of the offending vehicle had no valid and effective license and hence no liability can be fastened on the Insurance Company.7. The Tribunal, vide common award dated 13.09.2011, allowed the petitions filed by the claimants and awarded a sum of Rs. 6,05,000/- in MACT Case No. 97/2008, Rs. 4,56,8000/- in MACT Case No.109 of 2008 and Rs. 51,448/- in MACT Case No.28 of 2009. It was, inter alia, held that the Insurance Company is liable to pay compensation as the driver of the offending vehicle was holding a valid and effective driving license. It was also held that the Insurance Company failed to adduce any evidence to prove to the contrary.8. Challenging the said order, the Insurance Company filed FAO Nos. 6935, 6937 and 6977/2011 and the claimants filed FAO Nos. 906 and 907 of 2012 seeking enhancement of the compensation.9. By impugned judgment dated 22.05.2014, the High Court reversed the award of the Tribunal in part in the appeals filed by the Insurance Company and held that since the driver of the offending vehicle did not possess a valid license to drive the vehicle because he failed to file the original one and filed its photocopy, the Insurance Company cannot be held liable to pay the awarded sum. In other words, the High Court held that the driving license was not properly proved and hence it cannot be held that the driver was having a valid driving license. In this view of the matter, the Insurance Company was exonerated from the liability from paying the compensation. However, the Insurance Company was directed to pay the awarded sum to the claimants first and then to recover the awarded sum from the owner and driver of the offending vehicle on the principle of `pay and recover.10. Challenging the said order, the owner has filed these appeals by way of special leave before this Court.

Court's reasoning:
19. In our considered opinion, the Tribunal was right in holding that the driver of the offending vehicle possessed a valid driving license at the time of accident and that the Insurance Company failed to adduce any evidence to prove otherwise. This finding of the Tribunal, in our view, should not have been set aside by the High Court for the followingare of the considered opinion that the High court was not right in reversing the finding of the Tribunal. Indeed, the High Court should have taken note of these reasons which, in our view, were germane for deciding the issue of liability of the Insurance Company arising out of the accident.22. We, therefore, find no good ground to concur with the finding of the High Court. Thus while reversing the finding, we hold that the driver of the offending vehicle was holding a valid driving license (Exhibit-R1) at the time of accident and since the Insurance Company failed to prove otherwise, it was liable to pay the compensation awarded by the Tribunal and enhanced by the High Court.