Dansan Singh vs Bijaya Bihari Singh
2023 Latest Caselaw 6085 Ori

Signature Not Verified
Digitally Signed
Signed by: SANGRAM DAS
Designation: Jr. Stenographer
Reason: Authentication
Location: High Court of Orissa, Cuttack
Date: 23-May-2023 12:39:31


                                          IN THE HIGH COURT OF ORISSA AT CUTTACK
                                                      MACA No. 726 of 2008


                    (From the judgment dated 26th July, 2008 passed by the District Judge-
                    cum-1st M.A.C.T., Sundargarh in M.A.C. Case No. 28 of 2006)


                    Dansan Singh                                   ......                  Appellant

                                                                  Versus

                    Bijaya Bihari Singh
                    & Ors                                          .......                Respondents


                    Advocate(s) appeared in this case:-

                      For Appellant                    : Mr. P.K.Rath, Advocate

                      For Respondents                  : Mr. S.K.Swain, Advocate


                                           CORAM : JUSTICE B.P. ROUTRAY

                                                          JUDGMENT

16th May, 2023 B.P.Routray, J.

1. Heard Mr. Rath, learned counsel for the Appellant and Mr.Swain, learned counsel for Respondent No.3.

2. Present appeal by the Owner is directed against judgment dated 26th July, 2008 of District Judge-cum-1st M.A.C.T., Sundargarh in MAC Case No.28 of 2006, wherein compensation to the tune of Rs.3,32,000/- has been granted along with interest @7.5% per annum with effect from the date of filing of the claim application on account of death of the deceased by motor vehicular accident on 18th May, 2006.

Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Designation: Jr. Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 23-May-2023 12:39:31

3. The Tribunal while granting compensation has saddled the liability on the owner by exonerating the Insurer on the ground that the driver of the offending vehicle i.e. Truck bearing registration No.OR-16B-2998, possessed a fake driving license.

4. Mr. Rath submits that the offending vehicle is a Truck i.e. a goods carriage vehicle and it was not within the knowledge of the owner regarding possession of fake driving license by his driver. He further submits that competency of the driver was never questioned nor any scope was there with the owner to verify the genuiness of driving license produced by his driver.

5. Upon hearing Mr.Swain, learned counsel for the Insurer and keeping in view the principles decided in National Insurance Co.Ltd.-vrs-Swaran Singh & Ors., (2004) 3 SCC 297 and Nirmala Kothari vs United India Insurance Co.Ltd, (2020) 4 SCC 49, the liability is to be borne by the Insurer since the competency of the driver has not been disputed and nothing has been stated in course of adducing evidence. In such situation, while it was without the knowledge of the owner regarding possession of fake license by his driver, the Insurer cannot be absolved of its liability in terms of the insurance policy. In another recent decision, Rishi Pal Singh vs. New India Assurance Co. Ltd. (Civil Appeal No.4919 of 2022, decided on 26th July 2022), the Hon'ble Supreme Court have held as follows:

"10. The owner of the vehicle is expected to verify the driving skills and not run to the licensing authority to verify the genuineness of the driving license before appointing a driver. Therefore, once the owner is satisfied that the driver is competent to drive the vehicle, it is not expected from the owner thereafter to verify the genuineness of the driving license issued to the driver.

Signature Not Verified Digitally Signed Signed by: SANGRAM DAS Designation: Jr. Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 23-May-2023 12:39:31

11. In view of the said finding, the order passed by the High Court affirming the order of the Tribunal is set aside. Hence, liberty is given to the insurance company to recover the amount from the appellant is also set aside. Conseqeuntly, the appeal is allowed."

6. So in the result, the appeal is allowed and the Insurer- Respondent No.3 is directed to deposit the entire compensation amount as directed by the Tribunal along with interest within a period of two months from today; where-after the same shall be disbursed in favour of the claimants-Respondent Nos. 1 & 2 on such terms and proportion contained in the impugned judgement.

7. The statutory deposit made by the Appellant with accrued interest thereon be refunded to him on proper application.

8. Urgent certified copy of this order be granted on proper application.

( B.P. Routray) Judge S.Das