Jagdish Aggarwal & Anr vs National Insurance Co. Ltd. & Anr.

R.K.Gauba, J

Recovery rights were granted in favour of the first respondent (insurer) against the appellant by the Motor Accident Claims Tribunal by its decision

dated 26.08.2010 whereby the claim petition ( Case No. 1319/08) of the claimant (the second respondent) was decided on the ground that the

evidence would show that the driving licence held by the first appellant (the driver of the offending vehicle) had been issued on the basis of documents

which were fake, they purporting to have been issued as driving licence by another transport authority. The appeal at hand challenges the said grant of

recovery rights.

The issue is covered by a number of judgments of this Court in similar fact-situation, one of them being judgment dated 12.07.2017 C.M.(M)

1104/2013 titled as M/s The New India Insurance Company Limited vs. Sh.Zakir Hussain & Anr. Following observations in (para 3 and 4 of) the said

judgment should suffice to allow the present appeal:-

“3. It appears that from the evidence led during the inquiry it was brought out that the driving license had been obtained by the first

respondent on the basis of a document which was fake. The said driving license which had been obtained, however, had been renewed from

time to time, the renewal and validity having been confirmed by the licensing authority. The obtaining of license on the basis of fake

document was an act which would be illegal and also an offence punishable in law. But then, there is no evidence brought on record that

the registered owner (insured) was privy to such dishonest act on the part of the first respondent. Fact remains that the transport authority

through its official confirmed before the tribunal in the inquiry that the driving license for the period in question was valid and effective.

Having regard to the law laid down by the Supreme Court in National Insurance Co. Ltd. vs. Swaran Singh & Ors.(2004) 3 SCC 297, the

plea of the insurance company cannot be accepted.â€​

The impugned judgment to the extent it granted recovery rights in favour of the first respondent and against the appellants is set aside.

The statutory amount shall be refunded.

The appeal is disposed of with the above terms.