Dismissed¶11

National Insurance Company Limited v. Smt Vimlesh and 8 Others

Allahabad HC26 May 2025FAFO/195/2024

Case brief

AI extract

What is this about?

Insurance company; motor accident claim; breach of insurance policy; driver not holding valid driving licence; pay and recover from owner; Swaran Singh AIR 2004 SC 1531; Truck No.U.P. 38 T-2842; Motor Accident Claims Tribunal Sambhal; M.A.C.P. No.23 of 2018; award Rs.16,00,880/- with 7% interest; FAFO 195 of 2024; appeal dismissed; National Insurance Company Limited; Smt Vimlesh.

What did the court decide?

None; appeal dismissed with no order as to costs. ¶11

National Insurance Company Limited Vs Smt Vimlesh and 8 Others — Allahabad HC (2025) — LawSathi Research

¶1

Neutral Citation No. - 2025:AHC:90764

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Court No. - 2

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Case :- FIRST APPEAL FROM ORDER No. - 195 of 2024

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Appellant :- National Insurance Company Limited Respondent :- Smt Vimlesh And 8 Others Counsel for Appellant :- Komal Mehrotra Counsel for Respondent :- Mohd. Asim Zulfiquar

¶5

Hon'ble Saral Srivastava,J.

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Heard learned counsel for the appellant and learned counsel for the respondents.

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The present appeal has been preferred by the appellant-Insurance Company challenging the award dated 27.10.2023 passed by the Motor Accident Claims Tribunal, Sambhal (hereinafter referred to as 'Tribunal') in M.A.C.P. No.23 of 2018 whereby the Tribunal has awarded Rs.16,00,880/- along with 7% interest as compensation to the claimants/respondents.

¶8

Challenging the aforesaid award, learned counsel for the appellant has contended that once Tribunal has recorded a finding that offending vehicle i.e. Truck No.U.P. 38 T-2842 was driven by its driver not holding a valid driving licence, Tribunal should have absolved the Insurance Company from paying any compensation. It is contended that direction of the Tribunal that Insurance Company shall pay the award and thereafter, recover it from the owner is illegal and not sustainable in law.

¶9

Be that as it may, the law on the point that if the owner has committed breach of insurance policy, the Insurance Company is liable to pay award and thereafter, recover it from the owner, is settled by the judgement of Apex Court in the case of National Insurance Company Ltd. Vs. Swaran Singh & Others, AIR 2004 SC 1531 wherein Apex Court has held that in case of breach of terms and conditions of policy, the Insurance Company should pay the award and thereafter recover it from the owner of the vehicle.

¶10

5.Thus, the contention of learned counsel for the appellant is misconceived in view of the judgement of of Apex Court in the case of Swaran Singh (supra).

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Accordingly, the appeal lacks merit and is accordingly, dismissed with no order as to costs.

¶12

Order Date :- 27.5.2025 NS

¶13

Digitally signed by :- NITIN KUMAR High Court of Judicature at Allahabad

National Insurance Company Limited v. Smt Vimlesh and 8 Others

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National Insurance Company Limited v. Smt Vimlesh and 8 Others

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