National Insurance Co. Ltd. vs Bhavsingh @ Dhalsingh Marawi
2023 Latest Caselaw 20816 MP

Madhya Pradesh High Court

National Insurance Co. Ltd. vs Bhavsingh @ Dhalsingh Marawi on 8 December, 2023

Author: Vivek Agarwal

Bench: Vivek Agarwal

                                                         1
                           IN    THE      HIGH COURT OF MADHYA PRADESH
                                               AT JABALPUR
                                                     BEFORE
                                       HON'BLE SHRI JUSTICE VIVEK AGARWAL
                                            ON THE 8 th OF DECEMBER, 2023
                                             MISC. APPEAL No. 5283 of 2018

                          BETWEEN:-
                          NATIONAL INSURANCE CO. LTD. NOT MENTION
                          PANKAJ PLAZA, FIRST FLOOW, NAGPUR ROAD
                          CHHINDWARA TEH. AND DISTT. CHHINDWARA
                          (MADHYA PRADESH)

                                                                                    .....APPELLANT
                          (BY SMT. AMRIT KAUR RUPRAH - ADVOCATE )

                          AND
                          1.    BHAVSINGH @ DHALSINGH MARAWI S/O
                                DAULAT MARAWI, AGED ABOUT 49 YEARS, VILL.
                                SAMNAPUR P.S. KANHIWADA DISTT. SEONI
                                (MADHYA PRADESH)

                          2.    SMT. NARBADA MARAWI W/O BHAVSINGH
                                MARAWI, AGED ABOUT 39 YEARS, VILLAGE
                                SAMNAPUR PS KANHIWADA (MADHYA PRADESH)

                          3.    PRADEEP KUMAR RAJAK S/O MANIRAM RAJAK,
                                AGED ABOUT 28 YEARS, VILLAGE SADAKSEONI
                                PS AND TEH. CHHAPARA (MADHYA PRADESH)

                          4.    ANIL KUMAR TEKAM S/O AMARLAL TEKAM
                                VILLAGE PIPARIYA POST SADAKSEONI PS AND
                                TEH. CHHAPARA (MADHYA PRADESH)

                                                                                 .....RESPONDENTS
                          (BY SHRI SARDAR AVTAR SINGH - ADVOCATE FOR RESPONDENTS NO.1
                          AND 2)
                          (BY SHRI SARVESH KUMAR JAISWAL - ADVOCATE FOR RESPONDENTS
                          NO.3 AND 4)

                                This appeal coming on for admission this day, th e court passed the
                          following:
                                                          ORDER

This appeal is filed by the Insurance Company being aggrieved of award dated 05.09.2018 passed by Motor Accident Claims Tribunal, Seoni in M.A.C.C. No.1300260/2016 on two grounds namely driver of the offending vehicle Mahindra Auto Alpha 3 Delux was not having a valid driving license as there was no endorsement to drive a commercial vehicle and, secondly, learned Tribunal has awarded penal interest stipulating a condition that if compensation is not paid within a period of two months, then the Insurance Company will be liable to pay penal interest of 9%.

After hearing learned counsel for the parties and going through the record, as far as, first ground is concerned, driver was admittedly having a valid

driving license of LMV. Therefore, in the light of the judgment of Supreme Court in Mukund Dewangan Vs. Oriental Insurance Co. Ltd. (2017) 14 SCC 663, mere absence of endorsement is not sufficient to exonerate the Insurance Company and, therefore, on first ground, appeal deserves to fail and is dismissed.

As far as, second ground is concerned, it is already covered by the judgment of Hon'ble Supreme Court in case of National Insurance Co. Ltd. Vs. Keshav Bahadur, (2004) 2 SCC 370 wherein Hon'ble Supreme Court has deprecated practice of award of penal interest, and therefore, on this ground appeal deserves to be allowed and is allowed.

It is directed that Insurance company will be liable to pay compensation along with interest @ 6% as has been awarded by the Tribunal and no penal interest will be payable. Other terms and conditions of the award shall remain intact.

In above terms, this appeal is disposed of.

Record of the Tribunal be sent back.

Certified copy as per rules.

(VIVEK AGARWAL) JUDGE Tabish