- (1.) Appellants Davinder Singh and Raja Singh, who are the driver and owner of TSR No.DL-1RE-1850 take exception to the judgment dated 06.03.2009 passed by the Motor Accident Claims Tribunal (the Claims Tribunal) whereby while awarding a compensation of Rs. 2,55,000/-, the Claims Tribunal held that the Appellants were guilty of breach of terms of policy read with Section 149 (2) (a) of the Motor Vehicles Act, 1988 (the Act) and thus while directing the Insurance Company to satisfy the award, granted recovery rights against the Appellants. Following contentions are raised on behalf of the Appellants:- (i) The TSR in question was registered on 31.03.2000; the alleged Notification dated 19.08.2003 having been issued much after grant of permit, the earlier permit was not governed by the condition. Moreover, it is argued that the permit was not proved by the Insurance Company to establish breach of the terms of policy. (ii) Even if, it is assumed that such a permit was issued there was no breach of the terms of policy as envisaged under Section 149 (2) of the Act. Section 149 (2) (a) (i) (c) of the Act entitles the Insurer to defend the action for payment of compensation if the vehicle was used for a purpose not allowed by permit under which the vehicle was being used. It is contended that the user/driving of the vehicle by a person other than the registered owner cannot be said to be use of the vehicle for a purpose not allowed by the permit.
(2.) It is admitted by the learned counsel for the Respondent Insurance Company that the vehicle in question was registered with the Registering Authority on 13.01.2000. Copy of the Registration Certificate placed on the Trial Court Record and on the paper book confirms this fact.
(3.) The Notification relied upon by the Respondent Insurance Company (Ex.R3W2/3) was issued only on 19.08.2003. Admittedly, the Respondent Insurance Company has not proved whether the conditions issued by Notification dated 19.08.2003 were applied to the previously issued permit. Rather, a plain reading of the Notification reveals that it was applicable from the date of issue.;