Allahabad High Court
NATIONAL INSURANCE COMPANY LIMITEDversusMRS. BABLI AND OTHERS
- Decided
Holding
The award is modified: the insurer must pay the award but may recover the amount from the vehicle owner.
Summary
National Insurance Company Limited appealed a Motor Accident Claims Tribunal award of Rs. 2,16,000 granted to Mrs. Babli and others for a 12 October 2002 accident in which the deceased was struck by a tanker. The appellant argued that the driver’s licence was found to be fake, a fact verified by the insurer’s investigating authority and the RTO, and that the tribunal erred by holding the insurer liable without considering this. The High Court examined the record, noted the falsity of the licence, and held that the insurer’s liability to satisfy the award must be modified. The court ordered that while the insurer must pay the award, it is entitled to recover the amount from the owner of the offending vehicle under the law. Consequently, the appeal was allowed in part, modifying the tribunal’s award.
Issues considered
- Whether the insurance company is liable to satisfy the Motor Accident Claims Tribunal award when the driver’s licence is found to be fake.
- Whether the insurer can recover the amount paid from the owner of the offending vehicle.
Subjects
- Motor Accident Claims Tribunal
- insurance liability
- fake driving licence
- subrogation
- appeal
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
FIRST APPEAL FROM ORDER No. - 2863 of 2005
National Insurance Company Limited
.....Appellant(s)
Versus
Mrs. Babli And Others
.....Respondent(s)
Counsel for Appellant(s) : Arvind Kumar
Counsel for Respondent(s) : A.K. Srivastava, Sumit Srivastava
Court No. - 54
HON'BLE ANIL KUMAR-X, J.
1. Sri Achintya Kumar, holding brief of Sri Arvind Kumar, learned counsel
for appellant is present. Service upon all respondents is deemed sufficient.
2. This instant appeal has been preferred with a prayer to set aside the
judgment and order dated 10.8.2025 passed by the Motor Accident Claims
Tribunal, Badaun in M.A.C. No. 320 of 2002.
3. Learned counsel for the appellant submitted that an amount of Rs.
2,16,000/- was awarded by the learned tribunal in favour of the respondent-
claimant on account of the accident dated 12.10.2002. It was alleged that the
deceased, Manoj Kumar, was hit by a tanker bearing registration no. UP-82-
A/9395. It was further submitted that the driving licence produced during the
proceedings was found to be fake upon verification by the investigating
authority of the insurance company. The said fact was further corroborated
by the report submitted by the concerned RTO office. However, the learned
tribunal failed to take the said fact into consideration and fastened the
liability to satisfy the award upon the insurance company. According to
learned counsel for the appellant, the said finding is perverse and
unsustainable in law.
4. Heard learned counsel and perused the impugned order. The submissions
advanced by learned counsel for the appellant find support from the material
available on record. The driving licence of the driver was found to be fake.
Therefore, the liability fastened upon the insurance company to satisfy the
award requires modification. Accordingly, the appeal is liable to be allowed
in part.
5. The impugned award is modified to the extent that, although the insurance
company shall satisfy the award in favour of the respondent-claimant, it shall
FAFO No. 2863 of 2005
2
have the right to recover the amount so paid from the owner of the offending
vehicle in accordance with law.
September 9, 2026
Ujjawal
(Anil Kumar-X,J.)
Digitally signed by :-
UJJAWAL
High Court of Judicature at Allahabad
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