NATIONAL INSURANCE CO. LTD.versusSAVITRI DEVI AND ORS.
- Citation
- 2004 INSC 3
- Decided
- 5 January 2004
- Disposal
- Dismissed
Holding
The Tribunal’s award that the insurer is liable to pay compensation, with the right to recover from the vehicle’s owner, is justified.
Summary
The case arose from a motor accident in which the vehicle was being driven by the first respondent without a valid licence. The claimant, Savitri Devi, filed a claim for compensation under the Motor Vehicles Act, 1988. The Motor Accident Claims Tribunal held that National Insurance Co. Ltd., the insurer of the vehicle, was liable to pay the compensation and allowed the insurer to recover the amount from the vehicle’s owner. The Punjab and Haryana High Court affirmed this award. The insurer challenged the award before the Supreme Court via Special Leave Petition No. 171 of 2004, arguing that its preliminary objections barred liability. The Supreme Court examined the facts and held that the Tribunal’s finding of liability was correct and that the insurer could be compelled to pay, dismissing the petition. Consequently, the award remained in force.
Issues considered
- Whether the insurer is liable to pay compensation under the Motor Vehicles Act when the vehicle is driven without a valid licence
- Whether the insurer’s preliminary objections can defeat its liability for compensation
- Whether the insurer may recover the compensation amount from the owner of the offending vehicle
Legislation cited
Subjects
Judgment
A NATIONAL INSURANCE CO. LTD.
\'.
SA VITRI DEVI AND ORS.
JANUARY 5, 2004
B [V. N. KHARE, CJ., D.M. DHARMADHIKARI AND S.B. SINHA, JJ.]
j
Motor Vehicles Act, 1988-Motor accident-Vehicles driven without valid
and effective licence-Claim for compe11satio11-Compensation awarded by
Tribunal holding insurance company liable to pay with pepiiission to recover
c the amount from the owner of offending vehicle-Confirmatioq of award by
High Court-Special leave petition before Supreme Court-Held: Jn view of
facts of the case. award justified.
CIVIL APPELLATE JURISDICTION : Special Leave Petition (C) No.
D 171 of 2004.
From the Judgment and Order dated 7.10.2002 of the Punjab and
Haryana High Comt in F.A.0. No. 4965 of 2002. {..
Ms. Kiran Suri for the Petitioner.
E The Judgment of the Court was delivered
This Special Leave Petition is directed against a judgment and order
dated 7.10.2002 passed by the High Court of Punjab and Haryana at
Chandigarh whereby and whereunder the appeal filed by the petitioner herein
F questioning an award made by Motor Accident Claims Tribunal, Ambala
was dismissed. The High Court passed the said order on the ground that the
Petitioner has been permitted to recover the amount from the owner of the -..
offending vehicle. On a perusal of the award impugned before the learned
Tribunal it appears that a finding of fact has been arrived at that the vehicle
in question was driven by the first respondent without valid and effective
G licence as on the date of the accident. While answering issue No. 3 that as
to whether insurance company is not liable to make any payment of
compensation on account of the preliminary objections taken by it in its
written statement, the learned Tribunal observed that although the Petitioner .,... /
is liable to pay compensation to the claimant, it may recover the same from
H 178
NATIONAL INSURANCE CO. LTD. v. SAVITRI DEVI 179
the owner of the offending vehicle. A
Having regard to the facts and circumstances of this case, we do not
find any merit in this petition and is dismissed. No costs. '
K.K.T. Petition dismissed.
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