Jitmani Bhagat vs National Insurance Co Ltd

PETITIONER had got his bus bearing Registration Number BR-42P-8888 insured with the respondent Insurance Company for the period from 29.11.2002 to 28.11.2003. On 1st November, 2003 the said bus met with an accident. FIR was lodged Respondent Insurance Company was also informed. Petitioner then submitted her claim for Rs. 1 lac which the respondent Insurance Company repudiated on the ground that the driver of the vehicle did not have a valid driving licence. Aggrieved by this, respondent filed the complaint before the District Forum.

DISTRICT Forum allowed the complaint and directed the petitioner to pay Rs. 69,919 to the complainant towards insurance claim. Rs. 10,000 were awarded as compensation and Rs. 1,000 as costs.

RESPONDENT being aggrieved filed the appeal before the State Commission which allowed the same and set aside the order of the District Forum. It was held that the renewal of original licence No. 7566 of 1990, which was fake could not transform a fake licence into a genuine licence. The State Commission has recorded a finding that the original licence neither bore the seal or the signatures of the DTO, Hazari Bagh nor any Memo Number. That DTO, Hazari Bagh had confirmed in its communication that licence bearing No. 7566 of 1990 was not issued by the DTO Hazari Bagh.

COUNSEL for the parties have been heard.

IN the instant case evidently the driver of the vehicle was in possession of licence No. 7566 of 1990, allegedly, issued by DTO, Hazari Bagh. The said licence was fake and notvalid as confirmed by the licensing authority, Hazari Bagh. Supreme Court in National Insurance Co. Ltd. v. Laxmi Narain Dhut, III (2007) CPJ 13 (SC)=IV (2007) SLT 102=II (2007) ACC 28 (SC)=(2007) 3 SCC 700, has held that renewal of a fake licence in accordance with law cannot cure the inherent defect. That the renewal of fake licence cannot transform a fake licence into a genuine licence. That the judgment of Supreme Court in the case of National Insurance Co. Ltd. v. Swaran Singh and Ors., I (2004) SLT 345=109 (2004) DLT 304 (SC)=I (2004) ACC 1 (SC)=(2004) 3 SCC 297, was not applicable to ''own damage case''; the same was applicable to ''third party rights'' only.

IN the present case, the State Commission has rightly come to the conclusion that the renewal of a fake licence could not cure the inherent defect and transform a fake licence into a genuine licence. The view taken by the State Commission is in line with the view taken by the Supreme Court. No ground for interference is made out. Dismissed. Revision Petition dismissed.