National Insurance Co. Ltd. vs Surinder Kumar Sharma & Ors.
2016 Latest Caselaw 3557 Del

Citation : 2016 Latest Caselaw 3557 Del
Judgement Date : 12 May, 2016

Delhi High Court

National Insurance Co. Ltd. vs Surinder Kumar Sharma & Ors. on 12 May, 2016

$~R-89

*      IN THE HIGH COURT OF DELHI AT NEW DELHI
                                         Date of Decision: 12.05.2016
+      MAC.APP. 621/2007

       NATIONAL INSURANCE CO. LTD.                          ..... Appellant
                    Through:

                          versus

       SURINDER KUMAR SHARMA & ORS.                        ..... Respondents
                   Through:

CORAM:
HON'BLE MR. JUSTICE R.K.GAUBA
                          JUDGMENT

R.K.GAUBA, J (ORAL):

1. By judgment dated 16.08.2007, the Motor Accident Claims Tribunal (tribunal) decided accident claim case (suit no.180/07/04) instituted on 05.06.2004 by the first respondent (claimant) and, while awarding compensation in the sum of Rs.91,826/- in his favour, directed appellant (insurance company) to pay the said amount as compensation on account of the injuries suffered by the claimant involving a motor vehicle bearing registration no.DL-1R-E- 9959 (offending vehicle) admittedly insured with it, the contention of the insurer on the ground that the driver of the offending vehicle was not holding a valid or effective driving licence was rejected. Nonetheless, the tribunal having found a case of breach of the terms and conditions of the insurance policy on such account granted recovery rights to the insurer against the driver and owner.

2. By the appeal at hand, the insurer pleaded that instead of being asked to pay and granted recovery rights, it should have been exonerated.

3. The appeal is unmerited. The right of the third party cannot be defeated. The interests of the insurer are duly protected by grant of recovery rights. [See National Insurance Company V. Swaran Singh (2004) 3 SCC 297 and United India Insurance Company Ltd. V. Lehru & Ors. (2003 3 SCC 338].

4. In terms of earlier orders, the insurer had deposited the entire compensation, out of which 50% has already been released. The balance is lying with the tribunal. The said amount lying with the tribunal shall now be released to the claimants in terms of the impugned judgment.

5. Statutory deposits, if made, shall be refunded.

6. The appeal is disposed of in above terms.

R.K. GAUBA (JUDGE) MAY 12, 2016 yg