Hira Lal vs Lt. Col. A.K. Dhimri and Others

G.P. Mittal, J.—By virtue of this Appeal, the Appellant Hira Lal impugns a judgment dated 10th May, 2007 passed by the Motor Accident

Claims Tribunal (the Claims Tribunal) whereby while awarding a compensation of Rs. 10,00,000/- in favour of the Claimant, the Respondent

Insurance Company was granted rights to recover the award amount from the owner of the offending vehicle. In MAC APPL. No. 359/2007,

titled ''National Insurance Company Ltd. v. Lt. Col. A.K. Dimri & Ors.'' filed by the Respondent Insurance Company, the amount of

compensation has been reduced from Rs. 10,00,000/- to Rs. 5,21,000/-.

During the inquiry before the Claims Tribunal, the Appellant (the owner) gave a reply to the notice under Order XII Rule 8 CPC served by the

Learned Counsel for the Respondent Insurance Company. He also sent a copy of the driving license to the counsel. The Appellant filed his affidavit

Ex. R1W1/A by way of his evidence. He stated that at the time of employment, the driver Fateh Khan had a valid driving licence. He took the

driving test of the driver and was satisfied about the driving skills of the driver and this part of the Appellant''s testimony was not challenged in

cross-examination. He denied the suggestion that the driving licence was fabricated.

The Respondent Insurance Company preferred not to even verify the genuineness of the driving licence, a copy of which was filed by the

Appellant along with the Appeal. In compliance of this Court''s order dated 12th January, 2010 a verification report dated 5th September, 2011

was filed by the investigator stating that the licence is not genuine.

The Respondent Insurance Company failed to prove willful and conscious breach of the terms of policy and was, therefore, not entitled to

recovery rights. ( United India Insurance Company Ltd. Vs. Lehru and Others, ; National Insurance Co. Ltd. Vs. Swaran Singh and Others, and a

judgment of this Court in Sanjay v. Suresh Chand & Ors., FAO 445/2000, decided on 03.08.2012).

The Appeal, therefore, has to be allowed and the impugned order to the extent granting recovery rights against the Appellant is set aside.

Statutory amount of Rs. 25,000/- shall be refunded to the Appellant.

The Appeal is allowed in above terms. Pending Applications stand disposed of.