M/S Oriental Insurance Company ... vs Mostt. Anita
2021 Latest Caselaw 4739 Jhar

IN THE HIGH COURT OF JHARKHAND AT RANCHI
                M.A. No. 74 of 2008

M/s Oriental Insurance Company Limited, Divisional Office-1, Ved Narayan,
Kutchery Road, Town and District-Ranchi through Deputy Manager OIC Sri
S.P. Singh, S/o Sri Mathura Singh, R/o Morabadi PO and PS Bariatu, District
Ranchi                                              .. OP/Appellants
                                Versus
1.Mostt. Anita
2.Mostt. Darsani
3. Asha Kumar
4. Kamlesh Kumar
5. Maya Kumari
6.Ranjeet Kumar
7. Dilip Kumar
8.Tarkeshwar Prasad Singh
9.Manoj Choudhary
                                ....                     Respondents
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CORAM : HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY

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For the Appellant : Mr. Rajiv Ranjan & A.K. Mishra, Advocates For the Respondents : Mr. Mnoj Kumar, Advocate Mr. P.N. Rai, Advocate 15 / 10.12.2021

1. This appeal is preferred by the Insurance Co. against the award of compensation in Clam Case No. 83/2000 by the learned 1st Additional District Judge-cum-P.O. M.A.C.T, Koderma whereby and whereunder the award of compensation of Rs.6,00,000/- with interest @ 6% per annum has been made against the appellant- M/s Oriental Insurance Company Limited with a right to recover all the paid amount from the owner of offending vehicle.

2. The appeal has been preferred inter-alia on the ground that the compensation amount is highly excessive and in view of the breach of policy and it was the liability of the owner to pay the compensation amount and not on the insured of the vehicle.

3. On perusal of para-7 of the judgment it is manifest that the driving licence was duly verified and found that the driver of the vehicle was not holding valid and effective driving licence at the time of accident it was for this reason that the order of pay and recovery was passed against the Insurance Company.

4. It has been held in the case of Shamamma Vs. Divisional Manager, M/s Oriental Insurance Company Limited; 2018 (9) SCC 650 in case of third party risk, as per the compensation in National Insurance Company Limited Vs. Swarn Singh; 2004 3 SCC 297 the insurer has to indemnify the compensation to the third party and the Insurance Co. may recover the same from the insured.

5. Doctrine of "pay and recover" was considered by the Hon'ble Supreme Court in Swarn Singh (Supra) case wherein the Hon'ble Supreme Court examined the liability of Insurance Co. in cases of breach of the policy condition due to disqualification of the driver or invalid driving licence of the driver and held that in case of third party risk, the insurer has to indemnify compensation to the third party and Insurance Co. may recover the same the insured.

Under the circumstance, the appeal is devoid of merit and is hereby dismissed.

(GAUTAM KUMAR CHOUDHARY, J.) Tarun