The New India Assurance Co. Ltd. vs Babu Lal & Ors.
2017 Latest Caselaw 656 Del

*     IN THE HIGH COURT OF DELHI AT NEW DELHI
                                Date of decision: February 03, 2017
+                        MAC.APP. 251/2008
      THE NEW INDIA ASSURANCE CO. LTD.         ..... Appellant
                    Through: Mr. Pankaj Seth, Advocate

                    Versus
      BABU LAL & ORS.                ..... Respondents
                    Through: Nemo.
      CORAM:
      HON'BLE MR. JUSTICE SUNIL GAUR
                  JUDGMENT

% ORAL

1. Impugned Award grants compensation of `19,800/- with interest @ 9% p.a. to respondent-claimant, who was injured in a road accident on 22nd April, 1998. The factual matrix of this case already stands noted in the impugned Award and needs no reproduction. Suffice to note that factum of accident has not been disputed before the learned Motor Accident Claims Tribunal and driver/owner of vehicle in question have not led any evidence before the learned Tribunal. On the basis of evidence led, impugned Award has been rendered.

2. The challenge to the impugned Award by learned counsel for appellant is on the ground that driver of the vehicle in question was holding license for light motor vehicle whereas he was driving the heavy transport vehicle i.e. a truck and so, there is breach of insurance policy condition, which absolve the appellant-insurer from the liability to pay the compensation awarded.

3. As per order of 5th April, 2011, service is complete.

4. Upon hearing and on perusal of evidence on record and the impugned Award, I find that quantum of compensation awarded is adequate and in view of owner and driver of vehicle in question not stepping into the witness box, the liability to pay compensation is of respondent No.2- owner of truck in question.

5. However, in the first instance, Insurer ought to pay awarded compensation with right to recover it from the owner of vehicle in question as it is evident from the order of 28 th January, 2010 that appellant has deposited the awarded amount with interest with the learned Motor Accident Claims Tribunal and in the said order, it was noted that the claim in this appeal relates to recovery rights and there is no order to stay operation of impugned Award. In such a situation, appellant is granted recovery rights qua respondent No.2 in view of Supreme Court's decision in National Insurance Co. Ltd. v. Laxmi Narai Dhut, (2007) 3 SCC 700 wherein it has been reiterated that in a case of third party risks, the Insurer has to indemnify the amount, and if so, advised, to recover the same from the insured.

6. Consequentially, the impugned Award stands modified to the aforesaid extent and the appeal is accordingly disposed of.

(SUNIL GAUR) JUDGE FEBRUARY 03, 2017 r