G.P.MITTAL - (1.) THESE two appeals arise out of a common judgment dated 29th September, 2009 passed by the Motor Accident Claims Tribunal, New Delhi whereby Claim Petition no. 933/2004 and 934/2004 came to be decided. While granting a compensation of Rs. 42,400/- and Rs. 86,235/- in the two claim petitions respectively, the Claims Tribunal granted recovery rights against respondent no. 2, (Krishna Murari Dixit), the driver of the offending vehicle. The contention raised on behalf of the Appellant are :- (i) The appellant ought to have been completely exonerated as there was breach of the terms of policy, (ii) In any case, recovery rights ought to have been granted against the owner also i.e, the third respondent.
(2.) ON the other hand, it is submitted by learned counsel for the second and the third Respondent that insurance company did have the liability to satisfy the award in the first instance. The issue is no longer res integra that even in a case where the insurance company establishes a conscious breach of the terms of the insurance policy, the liability of the insurer to satisfy the decree is statutory. There is a authoritative pronouncement of the Supreme Court in National Insurance Company Limited Vs. Swaran Singh, 2004 (3) SCC 297 para 73, 104 and 105 are extracted hereunder :- "73. The liability of the insurer is a statutory one. The liability of the insurer to satisfy the decree passed in favour of a third party is also statutory. x x x x x x x x x x x x x x 104. It is, therefore, evident from the discussions made hereinbefore that the liability of the insurance company to satisfy the decree at the first instance and to recover the awarded amount from the owner or driver thereof has been holding the field for a long time. 105. Apart from the reasons stated hereinbefore, the doctrine of stare decisis persuades us not to deviate from the said principle.
(3.) FOLLOWING Swaran Singh, (Supra) this Court in National Insurance Company Limited Vs. Sanjay Kumar, ILR, 2007 (2), Delhi, 733 held that even when breach of the terms and conditions of policy of insurance and Section 149(2)(a) of the Motor Vehicle Act, 1988 is proved, the insurance company would still be required to pay the sum awarded to the claimant, but would be entitled to the recovery rights against the insured. In MAC App No. 329/2010, Oriental Insurance Company Limited Vs. Rakesh Kumar and Others, decided on 3rd February, 2012, this Court noticed National Insurance Company Limited v. Swaran Singh & Ors., (2004) 3 SCC 297, Sohan Lal Passi v. P. Sesh Reddy, (1996) 5 SCC 21, New India Assurance Co., Shimla v. Kamla and Ors., (2001) 4 SCC 342 and United India Insurance Company Ltd. v. Lehru & Ors., (2003) 3 SCC 338 and held that even when there is a willful breach of the terms of policy under Section 149(2)(a) of the Act, the Insurance Company is under obligation to indemnify the liability towards the third party and recover the same from the owner.;