Remanded

(O&M) National Insurance Co. Ltd. v. Dhanni Devi and Ors.

Punjab & Haryana HC22 Sept 2010FAO/4599/2003

Case brief

AI extract

What is this about?

The High Court held that Section 163-A of the Motor Vehicles Act does not oust the insurer’s right to contest liability on grounds of an invalid driving licence under Section 149(2). It set aside the Tribunal’s award only insofar as it failed to adjudicate the dispute between the insurer, driver, and owner regarding the licence validity. The appeal was remitted for specific adjudication.

What did the court decide?

The Tribunal award set aside regarding the inter se dispute; remanded to frame an issue on driving licence validity and adjudicate expeditiously.

(O&M) National Insurance Co. Ltd. Vs Dhanni Devi and Ors. — Punjab & Haryana HC (2010) — LawSathi Research

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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FAO No.4599 of 2003 (O&M) Date of decision:22.09.2010

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National Insurance Company Limited

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....Appellant

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versus

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Dhanni Devi and others

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...Respondents

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Present: Mr.Navin Kapur, Advocate, for the appellant.

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None for the respondents

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Whether reporters of local papers may be allowed to see the judgment ?

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To be referred to the reporters or not ?

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Whether the judgment should be reported in the digest ?

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----

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K.Kannan, J. (Oral)

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The Insurance Company is in appeal on the issue of liability on the ground that the driving licence was not genuine. The Ahalmad of the Criminal Court was examined to testify to the details of the driving licence secured from the driver and with reference to the same, a verification report was obtained from the Licensing Authority at Hyderabad, which showed that no such driving licence had been issued in the name of the driver.

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The Tribunal did not take the issue of fake licence as relevant since the case has been considered under Section 163-A. The provisions of Section 163-A and the defences available to the insurer under Section 149(2) are not mutual by exclusive. The defence still be available to the insurer to contend that the driver did not have a valid

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FAO No.4599 of 2003 (O&M) - 2 -

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driving licence. The non-obstante clause that is made under Section 163-A must be understood to mean that the requirement of law for proof of negligence is not to be applied for consideration under Section 163-A. I will not understand the non-obstante clause to be sweeping to trench upon the efficacy of defence under Section 149(2) of the MV Act. I am of the view that the insurer shall be afforded an opportunity to establish that the driving licence was not genuine by securing appropriate evidence from the licensing authority with reference to the original register. The award of the Tribunal is set aside only in so far as it is required to give adjudication of inter se dispute between the insurer on the one hand and the driver and owner on the other. The award passed by the Tribunal in favour of the claimants vis-a-vis the insurer shall stand confirmed. The Tribunal shall frame a specific issue relating to the validity of the driving licence and render an adjudication as expeditiously as possible. It is clarified that notice of hearing need not be served to the claimants. The appeal is remitted to the Tribunal for disposal in accordance with law.

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For appearance of parties before the Tribunal on 01.11.2010.

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(K.KANNAN) JUDGE

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22.09.2010 sanjeev

(O&M) National Insurance Co. Ltd. v. Dhanni Devi and Ors.

Case brief

What is this about?

What did the court decide?

(O&M) National Insurance Co. Ltd. v. Dhanni Devi and Ors.

Case brief

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What did the court decide?

What the court decided

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