RAKESH KUMAR & ETC. ETC.versusUNITED INDIA INSURANCE COMPANY LTD. & ORS. ETC. ETC.

                         [2016] 3 S.C.R. 237                               237


                 RAKESH KUMAR & ETC. ETC.                                  A
                                  v.
       UNITED INDIA INSURANCE COMPANY LTD. &
                    ORS. ETC. ETC.
                ( C ivi I Appeal Nos.6199-6202 of 2016)                     B
                            JULY13,2016
[J. CHELAMESWAR AND ABHAY MANOHAR SAPRE, JJ.]
      Motor Vehicles Act, 1988: s.166 - Compensation - Fatal
accident - Award of compensation by Tribunal - Insurer was held
liable to pay compensation as the driver of the offending vehicle
                                                                            c
was holding a valid and effective driving licence - High Court
accepted the insurer s appeal and exonerated the insurer on the
ground that the driver of the offending vehicle did not possess a
valid licence to drive the vehicle - Appeal by owner - Held: The
driver of the offending vehicle proved his driving licence in his           D
evidence and the insurer failed to adduce any evidence to prove
that the driving licence was either fake or invalid - Therefore, insurer
was liable to pay the compensation.
     Allowing the appeals, the Court
     HELD: 1. The driver of the offending vehicle proved his                E
driving license in his evidence. Second, when the license was
proved, the Insurance Company did not raise any objection
about its admissibility or manner of proving. Third, even if any
objection had been raised, it would have had no merit because it
has come on record that the original driving license was filed by           F
the driver in the Court of Judicial Magistrate First class in a
criminal case arising out of the same accident. Fourth, in any
event, once the license was proved by the driver and marked in
evidence and without there being any objection by the Insurance
Company, the Insurance Company had no right to raise any
objection about the admissibility and manner of proving of the              G
license at a later stage. Lastly, the Insurance Company failed to
adduce any evidence to prove that the driving license was either
fake or invalid for some reason. Impugned order in so far as it
relates to exonerating of the Insurance Company from the
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                                  237
238            SUPREME COURT REPORTS                         [2016] 3 S.C.R.


A     liability to pay the compensation is set aside and the Insurance
      Company (Respondent No.l) is held liable to pay the
      compensation awarded by the Tribunal and enhanced by the
      High Court jointly and severally along with the driver and
      owner of the offending vehicle. [Paras 20, 23] [241-F-H, 242-DJ
B           Oriental Insurance Company Ltd. v. Premlata Shukla
            & Ors. 2007 (6) SCR 780 : (2007) 13 SCC 476 - relied
            on.
                              Case Law Reference
            2007 (6) SCR 780                 relied on          Para 20
c
          CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 6199-
      6202 of20 I 6.
         From the Judgment and Order dated 22.05.2014 of the High Court
    of Punjab and Haryana at Chandigarh in FAQ Nos. 6935 of201 I, 6937
D . of201l,6977 of201Iand907 of2012 (O&M).,
           A. Tewari, Ms. Eliza Bar, Shree Pal Singh, Ad vs. for the Appellant.
           A . K. De, Debasis Misra, Advs. for the Respondents.
           The Judgment of the Court was delivered by

 E         ABHAY MANOHAR SAPRE, J. I. Leave granted.
            2. These appeals" are filed against the common final judgment and
      order dated 22.05.2014 passed by the High Court of Punjab and Haryana
      at Chandigarh in F.A.O. Nos. 6935, 6937, 6977of2011 and 907of2012
      (O&M) wherein the High Court partly allowed the appeals of the
 F    Insurance Company and reversed the award dated 13.09.2011 of the
      Motor Accident Claims Tribunal, Ambala in MACT Case Nos. 97, I 09
      of 2008 and 28 of 2009 and exonerated the Insurance Company from
      the liability arising out of the accident.
          3. Facts of the case lie in a narrow compass. They, however, need
 G    mention in brief to appreciate the short controversy involved in the
      appeals.
           4. On 16.09.2008, Sheo Ram, Madan Mohan, and Mohindro Devi
      along with others were traveling in a three wheeler bearing Registration
      No. PH-I I TC-468 from Naraingarh to Shahzadpur. Madan Mohan was
      driving the three wheeler on the left side of the road. At about I 0.30
 H
RAKESH KUMAR v. UNlTED INDIA INSURANCE COMPANY                                239
         LTD. [ABHAY MANOHAR SAPRE, J.]
 •.
a.m., when the three wheeler reached near Bus stop of Village Bharanpur        A
on Naraingarh Shahzadpur Road, a truck bearing Registration No. HR-
37-C-7937, which came from the opposite side, struck the three wheeler.
Though its driver Madan Mohan tried to avoid the accident by taking his
vehicle on the extreme left side of the road, yet all the occupants of the
three wheeler suffered multiple injuries. The injured were taken to Civil
                                                                               B
Hospital, Naraingarh in private vehicles. Thereafter, Sheo Ram was
referred to PGI Chandigarh where he succumbed to his injuries. A
criminal case bearing FIR No. 88 dated 16.09 .2008 was registered against
Jaipal, driver of Truck No. HR-37-C-7937 at the Police Station,
Shahzadpur, District Ambala for the commission of offence punishable
under Sections 279/337/304-A of the Indian Penal Code, 1860 (hereinafter       c
referred to as "the Code"). Madan Mohan, another injured, who was
driver of the three wheeler also died later at Civil Hospital, Narain_garh.
Smt. Mohindro Devi, the third injured, also suffered a number of injuries
in the accident and was shifted to Civil Hospital, Naraingarh but later
she also died.
                                                                               D
      5. The legal representatives ofSheo Ram filed claim petition being
MACT Case No. 97/2008, the legal representatives of Madan Mohan
filed claim petition being MACT Case No. I 09 of 2008 and legal
representatives ofMohindro Devi filed claim petition being MACT Case
No. 28 of 2009 before the MACT (in short "the Tribunal"), Ambala
under Section 166 of the Motor Vehicle Act, 1988 against the owner,           .E
driver and insurer of offending vehicle, i.e., HR-37-C-7937 claiming
compensation for a sum of Rs.20,00,000/-, Rs.20;00,000/-and
Rs. I O,oo;ooO/- respectively.
     6. It was contested by the non-applicants. One of the defence of
Insurance Company (R-3 _therein) was that the driver of the offending          F
vehicle had no valid and effective license and hence no liability can be
fastened on the Insurance Company.
     7. The Tribunal, vide common award dated 13.09.2011, allowed
the petitions filed by the claimants and awarded a sum ofRs.6,05,000/-
in MACT Case No. 97/2008, Rs.4,56,8000/- in MACT Case No.109 of                G
2008 and Rs.51,448/- in MACT Case No.28 of2009. It was, inter alia,
held that the Insurance Company is liable to pay compensation as the
driver of the offending vehicle was holding a valid and effective driving
license. It was also held that the Insurance Company failed to adduce
any evidence to prove to the contrary.                                         H
240             SUPREME COURT REPORTS                            [2016] 3 S.C.R.


A           8. Challenging the said order, the Insurance Company filed FAO
       Nos~ 6935, 6937 and 6977/2011 an<l the claimants filed FAO Nos. 906
      iind 907of2012 seeking enhancement of the compensation.
             9. By impugned judgment dated 22.05.2014, the High Court reversed
       the award of the Tribunal in part in the appeals filed by the Insurance
B     ·Company and held that since the driver of the offending vehicle did not
       possess-a valid license to drive the vehicle because he failed to file the
       original one and filed its photocopy, the Insurance Company cannot be
       held liable to pay the awarded sum. In other words, the High Court held
       that the driving license was not properly proved and hence it cannot be
       held that the driver was having a valid driving license. In this view of the
c      matter, the Insurance Company was exonerated from the liability from
       paying the compensation. However, the Insurance Company was directed
       to pay the awarded sum to the claimants first and then to recover the
       awarded sum from the owner and driver of the offending vehicle on the
       principle of 'pay and recover'.
D         I 0. Challenging the said order, the owner has filed these appeals by
      way of special leave before this Court.
           11. A short question that arises for consideration in these appeals is
      whether the High Court was justified in exonerating the Insurance
      Company from the liability on the ground that the driver of the offending
E     vehicle did not possess valid license?
           12. Heard Mr. A. Tewari, learned counsel for the appellant and
      Mr. A.K. De, learned counsel for respondent No. I.
            13. Submission of Mr. A. Tewari, learned counsel for the appellant,
       while attacking the impugned order was essentially two-fold.
 F
             14. In the first place, learned counsel urged that the High Court
       erred in exonerating the Insurance Company from the liability arising
       out of the accident. He submitted that the Tribunal having rightly held
       that the Insurance Company was liable to pay the compensation to the
       claimants as the driver of offending vehicle was having a val id driving
G
       license at the time of accident and that the vehicle in question was
       admittedly insured with the insurance company, there was no justifiable
       reason for the High Court to have reversed the finding of the Tribunal
       and exonerated the Insurance Company from the liability.
            15. In the second place, learned counsel urged that the High Court
H
RAKESH KUMAR v. UNITED INDIA INSURANCE COMPANY                                241
        LTD. [ABHAY MANOHAR SAPRE, J.]

failed to see that the driver of the offending vehicle had filed the photo     A
copy of his driving license, which was also proved (Exhibit-R I) by him
without there being any objection of the Insurance Company. Learned
counsel further pointed out that apart from this, the Insurance Company
failed to adduce any evidence to prove that the license held by the driver
was fake or not genuine etc.
                                                                               B
      16. Learned counsel urged that the finding of the High Court is,
therefore, not legally sustainable and hence deserves to be set aside and
that of the Tribunal on this issue is liable to be restored.
      17. In reply, learned counsel for respondent No. I (Insurance
Company) supported the reasoning of the High Court and contended               c
that the impugned order should be upheld calling no interference therein.
     I 8. Having heard the learned counsel for the parties and on perusal
of the record of the case, we are inclined to accept the submissions
urged by the learned counsel for the appellant as in our opinion, they
deserve acceptance.                                                            D
      19. In our considered opinion, the Tribunal was right in holding that
the driver of the offending vehicle possessed a valid driving license at
the time of accident and that the Insurance Company failed to adduce
any evidence to prove otherwise. This finding of the Tribunal, in our
view, should not have been set aside by the High Court for the following       E
reasons:
      20. First, the driver of the offending vehicle (N.A.-2) proved his
driving license (Exhibit-RI) in his evidence. Second, when the license
was proved, the Insurance Company did not raise any objection about
its admissibility or manner of proving. Third, even ifany objection had
                                                                               F
been raised, it would have had no merit because it has come on record
that the original driving license was filed by the driver in the Court of
Judicial Magistrate First class, Naraingarh in a criminal case arising out
of the same accident. Fourth, in any event, once the license was proved
by the driver and marked in evidence and without there being any
objection by the Insurance Company, the Insurance Company had no               G
right to raise any objection about the admissibility and manner of proving
of the license at a later stage (See Oriental Insurance Company Ltd.
Vs. Premlata Shukla & Ors., (2007) 13 SCC 476) and lastly, the
Insurance Company failed to adduce any evidence to prove that the
driving license (Ex.RI) was either fake or invalid for some reason.
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242             SUPREME COURT REPORTS                          [2016] 3 S.C.R.



A          21. In the light of foregoing reasons, we are of the considered
      opinion that the High court was not right in reversing the finding of the
      Tribunal. Indeed, the High Court should have taken note of these reasons
      which, in our view, were germane for deciding the issue ofliability of the
      Insurance Company arising out of the accident.
B           22. We, therefore, find no good ground to concur with the finding
      of the High Court. Thus while reversing the finding, we hold that the
      driverofthe offending vehicle was holding a valid driving license (Exhibit-
      R I) at the time of accident and since the Insurance Company failed to
      prove otherwise, it was liable to pay the compensation awarded by the
      Tribunal and enhanced by the High Court.
c
           23. In view of foregoing discussion, the appeals filed by the insured
      (owner of'the offending vehicle) succeed and are allowed. Impugned
      order in so far as it relates to exonerating of the Insurance Company
      from the liability to pay the compensation is set aside and the Insurance
      Company (Respondent No. I) is held liable to pay the compensation
D     awarded by the Tribunal and enhanced by the High Court jointly and
      severally along with the driver and owner of the offending vehicle.
           24. No costs.
      Devika Gujral                                              Appeals allo" ed.
E