NATIONAL INSURANCE CO. LTD.versusRAM KALI AND ORS.
- Citation
- 2004 INSC 2
- Decided
- 5 January 2004
- Disposal
- Dismissed
Holding
The discretionary awards of the Tribunal and its confirmation by the High Court are not subject to interference; compensation may be awarded despite policy breach and a fake licence.
Summary
The case arose from a motor accident involving a Maruti Van owned by the respondents. A claim for compensation was filed under the Motor Vehicles Act, 1988 against National Insurance Co. Ltd. The Motor Accident Claims Tribunal awarded compensation even though it found that the respondents had breached the insurance policy by using the vehicle on hire. The Punjab and Haryana High Court upheld the award despite also finding that the driver’s licence was forged. The insurer challenged the award before the Supreme Court, contending that the violations should preclude compensation. The Supreme Court held that both the Tribunal and the High Court had exercised their statutory discretion in favour of the claimant and that such discretion is not reviewable under Article 136. Consequently, the petition was dismissed.
Issues considered
- Whether a breach of the insurance policy terms (vehicle on hire) bars compensation under the Motor Vehicles Act, 1988
- Whether a forged driving licence of the driver affects the claimant’s entitlement to compensation
- Whether the discretionary award of compensation by the Motor Accident Claims Tribunal and its confirmation by the High Court can be interfered with by the Supreme Court under Article 136 of the Constitution
Legislation cited
Subjects
Judgment
A NATIONAL INSURANCE CO. LTD.
v.
RAM KALI AND ORS.
JANUARY 5, 2004
B (V. N. KHARE, CJ., D.M. DHARMADHIKARI AND
S.B. SINHA, JJ.]
'f
Motor Vehicles Act, 1988-Motor accident-Claim for compensation-
'
Compensation awarded by Tribunal despite holding that terms and conditions
c of insurance policy violated at the time of accident-High Court confirming
the award despite holding that driving licence of driver of vehicle was fake-
Special leave petition before Supreme Court-Held: Order of courts below
need no interference as in awarding compensation they had exercised discretion
in favour of the claimant-Constitution of India, 1950-Article 136.
D
CIVIL APPELLATE JURISDICTION : Special Leave Petition (C) No.
9065 of 2.003.
From the Judgment and Order dated 20. I 2.2002 of the Punjab and
Haryana High Court in F.A.O. No. 5942 of 2002.
E
Pannanand Gaur for the Petitioner.
The Judgment of the Court was delivered .,
This Special Leave Petition is directed against a judgment and order
F dated 20th December, 2002 passed by the High Court of Punjab and Haryana
at Chandigarh whereby and whereunder the appeal filed by the petitioner -...
herein questioning an award dated 6-9-2002 made by Motor Accident Claims
Tribunal, Fatehabad was dismissed. The High Court has dismissed the •
aforementioned appeal inter a/ia on the ground that the driving licence of
the offending vehicle had been found to be fake. The learned Tribunal,
G however, arrived at the finding of fact that the first respondent herein has
violated the terms and conditions of the insurance policy by plying the Maruti
Van on hire/i-eward at the time of accident-.
Y'
The said question, it appears from the impugned judgment of the High
Court, was not adverted to before it.
H 176
NATIONAL INSURANCE CO. LTD. v. RAM KALI 177
In view of the fact that both the Tribunal and the High Court had A
exercised their discretion in favour of the claimant. We do not intend to
exercise our discretionary jurisdiction under Article l 36 of the Constitution
of India. Accordingly, this petition is dismissed. No costs.
K.K.T. Petition dismissed.
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