Motor Vehicles Act 1988 – s. 166 – Compensation – Liability to pay when license fake – On facts, insured did not hold a valid driving licence at the time of the incident – Liability to pay compensation fastened on owner-cum-driver of the offending vehicle by courts below – Insurance company directed to pay and recover from the owner – Interference with – Held: Not called for – Owner did not depose in evidence – He produced a licence which was found to be fake – Another licence he sought to produce had already expired before the accident and was not renewed within the prescribed period – Owner evidently failed to take reasonable care to find out as to whether the driving license produced by the driver, fake one or otherwise, fulfilled the requirements of law or not – He could not have been unmindful of facts within his knowledge – Thus, the direction by the courts below that the insurance company to pay and recover from owner cannot be faulted. In the instant case, the insured did not hold a valid driving licence at the time of the accident. As a result, the courts below absolved the insurer. However, the insurer was directed to pay the compensation awarded to the claimant and to recover it from the owner cum driver of the offending motor cycle. Hence, the present appeal.
Dismissing the appeal, the Court
HELD : It is necessary to note that the owner did not depose in evidence and stayed away from the witness box. He produced a licence which was found to be fake. Another licence which he sought to produce had already expired before the accident and was not renewed within the prescribed period. It was renewed well after two years had expired. The appellant as owner had evidently failed to take reasonable care to find out as to whether the driving license produced by the driver, fake one or otherwise, fulfilled the requirements of law or not (proposition
(vii) of Swaran Singh) since he could not have been unmindful of facts which were within his knowledge. In the circumstances, the direction by the tribunal, confirmed by the High Court, directing the insurance company to pay and recover from owner cannot be faulted. [Paras 8, 9] [41-A-C]
National Insurance Co. Ltd. v. Swaran Singh [2004] 1 SCR 180 : (2004) 3 SCC 297 – relied on.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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