THE BRANCH MANAGER, ORIENTAL INSURANCE CO. LTD. Vs. NOOR BASHA

JUDGEMENT

(1.) THE appellant -Oriental Insurance Company is before this Court, challenging the judgment and award passed by the M.A.C.T. III at Bellary, in MVC No. 1106/06 in awarding the compensation of Rs. 27,400/ - along with interest at 6% p.a., specifically fastening the responsibility on respondent No. 2 (appellant herein) to deposit the entire amount, along with the interest within one month from the date of the order. The question raised before this Court by the Insurance Company is that the respondent No. 1 -M.Chandrashekar before the trial Court had absolutely no driving licence to drive any vehicle as on the date of the alleged accident. Therefore, fastening the liability on the Insurance Company is illegal. Allowing a person to drive the vehicle, who has no driving licence, amounts to violation of the terms and conditions of the policy. Therefore, it is contended that the award is bad in law, so far it relates to the appellant is concerned. After issuance of notice, the respondent appeared before the Court and contested the proceedings.

(2.) I have heard the arguments of Sri. Ravindra R. Mane, learned Counsel for the appellant and counsel for respondents 1 and 2. I have carefully perused the order impugned under this appeal.

(3.) BY misreading the said judgment, the trial Court has fastened the liability on the second respondent. Even on going through the said decision, the clarification has been made that where there was no licence at all, then no liability can be fastened on the Insurance Company. But, where defective or fake licence was in existence, if ultimately that fakeness of the licence or existence of the licence is confirmed, the question of liability may arise to the Insurance Company. Perhaps in that context, the Bombay High Court must have held that the Insurance Company has to pay the amount first and then it can challenge the judgment. But, that is not the case on hand here. In this particular case, admittedly, there was no licence at all, whatsoever whether it is a fake or defective licence, in order to draw such an inference to direct the Insurance Company to pay and recover the amount from the owner of the vehicle.