National Insurance Company … vs Shanti And Others on 3 December, 2009

In the High Court of Punjab and Haryana at Chandigarh


F.A.O. No.5656 of 2009 (O&M)

Date of decision: December 03, 2009

National Insurance Company Limited
                                                         .. Appellant

                    Vs.

Shanti and others
                                                         .. Respondents

Coram:       Hon'ble Mr. Justice A.N. Jindal

Present:     Mr. Sanjiv Pabbi, Advocate for the appellant.

A.N. Jindal, J
             The appellant-Insurance Company has preferred this appeal
against the award dated 20.7.2009 passed by the Motor Accident Claims
Tribunal,   Panchkula (herein     referred   as 'the Tribunal')     awarding
compensation to the tune of Rs.3,63,800/- along with interest @ 7.5% per
annum in favour of the claimants-respondents No.1 to 3 and against the
appellant as well as respondents No.4 & 5 jointly and severally.
             The sole argument advanced by the learned counsel for the
appellant is that the respondent No.4 (driver) was not holding a valid
driving licence at the time of accident, therefore, the insurance company
could not be held liable.
             Heard.
             The accident took place on 22.8.2008. The driving licence was
valid up to 23.7.2008 and it was got renewed on 28.8.2008 which was valid
up to 27.8.2013. The Tribunal has relied upon the provisions of Section 14
of the Motor Vehicles Act, 1988 which depicts that person whose licence is
ordinarily renewed in terms of the Motor Vehicles Act and the rules framed
thereunder, despite the fact that during the intervening period i.e. when the
accident took place and the date of expiry of the licence, he did not have a
valid licence whereas he could have during the said period applied for
renewal thereof and could obtain the same automatically without
undergoing any further test or without having been declared unqualified
thereof. As per proviso to Section 14 of the Motor Vehicles Act, licence
could remain valid for a period of 30 days from the date of its expiry, but in
 F.A.O. No.5656 of 2009                                  -2-

                                    ***

the present case the licence was renewed on 28.8.2003. There is a margin
difference of five days for renewal of the licence but nothing was brought
on record by the company in order to establish that the driver did not move
for renewal of the licence within time as such this margin cannot make
competent driver as incompetent to drive the vehicle so as to create a breach
of terms of policy of insurance. Reliance, if any, could be placed upon the
judgment delivered in case National Insurance Company Limited vs.
Vidhyadhar Mahariwala and others, 2008 (5) RAJ 534.

Resultantly, the appeal sans merit and is hereby dismissed.

December 03, 2009                                       (A.N. Jindal)
deepak                                                        Judge