High Court Punjab-Haryana High Court

Rama Kant And Another vs New India Assurance Co. & Ors on 27 January, 2009

Punjab-Haryana High Court
Rama Kant And Another vs New India Assurance Co. & Ors on 27 January, 2009
Civil Revision No.640 of 2006 (O&M)                    -1-

           IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                          CHANDIGARH

                                Civil Revision No.640 of 2006 (O&M)
                                Date of decision:27.01.2009

Rama Kant and another                                  .............. Petitioners

                                    Vs.


New India Assurance Co. & Ors.                         .............Respondents


Present:   Mr. Kanwaljit Singh, Sr. Advocate
           with Mr. I.S. Gill, Advocate
           for the petitioners.

           Mr. Suvir Dewan, Advocate
           for the respondents.

CORAM: HON'BLE MR. JUSTICE K. KANNAN

1.     Whether Reporters of local papers may be allowed to see the
       judgment ?
2.     To be referred to the Reporters or not ?
3.     Whether the judgment should be reported in the Digest ?
                             -.-
K.KANNAN, J. (ORAL)

1. The revision is directed against the order dismissing the

application to set aside an ex parte Award in a motor accident claim. As far

as the original order, the Award had been passed against Insurance

Company with a direction that the amount shall be paid by the Insurance

Company with a right of recovery against the owners.

2. The Award was passed on 31.05.2002 and application for setting

aside the Award was made on 08.10.2002, The application was filed stating

that one of the petitioners was suffering from kidney ailment and the other

petitioner who was a co-owner with him in respect to the vehicle was taking

care of him. The averment made in the petition was that the relevant driving

licence of the driver had been submitted to the counsel and they were

informed that their presence was not necessary and if it was found

necessary, the counsel would inform them. The petition was filed on a
Civil Revision No.640 of 2006 (O&M) -2-

further express statement that when the Award came to be passed, they

realized that they were unrepresented and the direction that provided for a

recovery by the Insurance Company constituted grave prejudice to them.

3. The Motor Accident Claims Tribunal dismissed the petition

entering a finding that the plea regarding forgery of the driving licence had

been gone into detail and that the Insurance Company could not be made

liable under such circumstances. The Tribunal, in fact, was not adverting to

the reasons for the non-appearance of the petitioners but was trying to find

its own reasons as to how impregnable the decision had been rendered and

that there was nothing to assail in the Award passed. According to it, the

Insurance Company could not be fastened with the liability in a case when

there was no effective driving licence at the relevant time. In my view, it

was still possible for owner to contend that he had made necessary enquiries

at the time of employing the driver and if he found nothing amiss at the time

of his initial engagement about the licence that was produced to him, the

Insurance Company would be liable to indemnify the insured. The liability

that may be fastened on the Insurance Company would depend upon the

nature of evidence that could be adduced by the owner as regards the

enquiry or otherwise about the genuineness of the driving licence of the

driver engaged to drive the vehicle at the relevant time.

4. While expressing no opinion on the merits of the Award as

regards the liability of the Insurance Company and its entitlement to recover

after payment from the owners, I deem it appropriate to give an opportunity

to contest the case on merits as regards the plea of the invalidity or

otherwise of the driving licence of the driver who had been engaged at the

time of the accident. The Award against the Insurance Company, if it had

been satisfied already, will obtain its finality only after a fresh adjudication

made after setting aside the Award that is already passed. The counsel for
Civil Revision No.640 of 2006 (O&M) -3-

the Insurance Company states that the Insurance Company has already paid

the money in terms of the Award but it shall not be recoverable from the

claimants and the adjudication which now takes place by virtue of this order

will govern only the rights of parties inter se amongst the respondents.

Subject to the above, the civil revision petition is allowed.

(K. KANNAN)
JUDGE
January 27, 2009
Pankaj*