Case: Oriental Insurance Co.Ltd Vs. Zaharulnisha

3. Briefly stated the facts leading to the filing of the appeal are as under:-On 23.07.2001 at about 6:00 p.m. one Shukurullah was going from Kasya Courts to his village Shivpur on a bicycle. A two wheeler scooter, bearing registration No. UP 57 - 5901, being driven by one Ram Surat in a rash and negligent manner hit Shukurullah near Sapha P.S. Kasya and as a result thereof, Shurkurullah sustained grievous injuries and died. The ill-fated scooter was owned by Vakilrao - respondent No. 8 herein. The legal representatives of deceased Shukurullah lodged a Claim Petition No. 98/2002 before the Motor Accident Claims Tribunal, Khushi Nagar/Additional District Judge and they claimed compensation for the death of their sole bread earner.4. By its award dated 26.04.2006, Motor Accident Claims Tribunal held that the accident was due to rash and negligent driving of the scooter by Ram Surat. It awarded a sum of Rs. 3,01,500/- as compensation with interest at 9% per annum in favour of the claimants and against the second respondent, owner of the scooter and appellant - insurance company. The appellant - insurance company was directed to pay the amount of compensation. The appellant - insurance company filed an appeal before the High Court. Before the High Court it was contended that as the driver Ram Surat was holding licence for driving Heavy Motor Vehicle (HMV) only, therefore, he had no valid licence to drive a two wheeler scooter which is totally a different class of vehicle in terms of Section 10 of the Motor Vehicles Act, 1988 [hereinafter referred to as the MV Act]. It was contended that in view of the breach of the provisions of the MV Act, the appellant - insurance company cannot be held liable to satisfy the award in terms of Section 149(2) of the MV Act.5. The High Court without noticing the contention of the appellant - insurance company passed short and unreasoned order, which reads asSri S.C. Srivastava, learned counsel for the appellant and perused the record.Having considered the submission of the learned counsel for the appellant, we are of the view that this appeal has got no force and is dismissed summarily. However, the statutory deposits so made before this Court be remitted to the Claims Tribunal within three weeks.Hence, the insurance company has filed this appeal.

Court's reasoning:
13. Driving licence has to be issued by the licencing authority on presentation of the application in Form IV as prescribed by Rule 14 of the Motor Vehicle Rules, 1989. The application form shall be accompanied by documents specified in the said Rule. The applicant has to apply for a licence in terms of Form IV enabling him to drive a particular vehicle of the description as specified in Section 10 of the MV Act, 1988. The licencing authority shall grant driving licence to the applicant in terms of Form VI and Rule 16(1) of the Central Motor Vehicle Rules, 1989.It is beyond any doubt or dispute that under Section 149 (1) of the MV Act, insurer, to whom notice of bringing of any proceeding for compensation has been given, can defend the action on any of the grounds mentioned therein.In the light of the above-settled proposition of law, the appellant - insurance company cannot be held liable to pay the amount of compensation to the claimants for the cause of death of Shukurullah in road accident which had occurred due to rash and negligent driving of scooter by Ram Surat who admittedly had no valid and effective licence to drive the vehicle on the day of accident. The scooterist was possessing driving licence of driving HMV and he was driving totally different class of vehicle which act of his is in violation of Section 10(2) of the MV Act.