Partly allowed

New India Assurance Co. Ltd. v. Munna Lal and Others

Allahabad HC23 Jan 2018FAFO/2564/2003

Case brief

AI extract

What is this about?

This court partly allowed an appeal by an insurance company aggrieved by a motor accident compensation award. It held recovery rights can be claimed if the driver lacked a valid licence, modifying the award to entitle the insurer to recover proceeds notwithstanding prior ademption.

What did the court decide?

Judgment and decree modified to grant recovery rights to the Insurance Company; record returned to Tribunal.

New India Assurance Co. Ltd. Vs Munna Lal and Others — Cheque Dishonour | Allahabad HC (2018)

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Court No. - 27

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Case :- FIRST APPEAL FROM ORDER No. - 2564 of 2003

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Appellant :- New India Assurance Co. Ltd. Respondent :- Munna Lal And Others Counsel for Appellant :- Ramesh Singh Counsel for Respondent :- S. Singh,A.L. Jaiswal,K.K. Roy

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Heard Sri Ramesh Singh, learned counsel for appellant and Sri Sarv Singh, learned counsel for claimants- respondent. None appeared on behalf of owner.

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By way of this appeal the Insurance Company has felt aggrieved by the grant of compensation of Rs.3,84,000/- with interest to the claimants in MACP No. 123 of 1998 passed by Motor Accident Claims Tribunal, Allahabad ( hereinafter referred to as "Tribunal")

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The brief facts not in dispute are that Malti Devi died at the age of 35 years in a vehicular accident her husband Munna Lal and her children preferred a claim petition as out of tailoring work she was earning Rs.3,000/- per month. ON the fateful day namely 12.1.1998 when deceased Malti Devi was going in a Rickshaw at about 1.30 p.m. one Gas Tanker dashed the Rickshaw and while being taken to hospital she scummed to the injuries. The accident according to the claimants arose out of rash and negligent driving of the driver of the Gas Tanker the said vehicle was insured with New India Assurance Company Ltd. and owned by the respondent therein. The owner did not file any reply and, therefore, the matter was decided to be heard ex-parte. The Insurance Company filed its reply one of denial and laid emphasis on the fact that the driver did not have valid driving licence.

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On pleadings being completed, the Insurance Company was held liable as the vehicle was insured with it on 12.8.1998. It is admitted position of fact that no licence was produced by the owner. Dara Singh the driver produced a so called licence bearing No. 375/90. It was only a documents which was not proved and the document did not prove that the vehicle was driven by Dara Singe in absence of any reply by the owner. Similar issue arose before the Apex Court recently in Civil Appeal No. 20962 of 2017 ( Pappu and others Vs. Vinod Kumar Lamba and another) decided on 19.1.2018 whereby recovery rights have been granted to the Insurance Company. Similar is the case here and therefore if the Insurance Company proved before the Tribunal that the driver Dara Singh did not have proper driving licence to drive the vehicle, they may recover the amount deposited here and paid to the claimants.

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Granting of recovery rights to the Insurance Company is only alternative now left to this Court as the Insurance Company has already deposited the entire amount awarded before Tribunal by orders of this Court. The amount lying with the Tribunal be disbursed to the claimants forthwith, if not yet given.

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Appeal is partly allowed . Judgment and decree shall stand modified to the aforesaid extent. Record and proceeding be sent back to the Tribunal forthwith.

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Order Date :- 23.1.2018 Mukesh

New India Assurance Co. Ltd. v. Munna Lal and Others

Case brief

What is this about?

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New India Assurance Co. Ltd. v. Munna Lal and Others

Case brief

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