Summary
The Court accepted that the insurer was not liable because the driver's licence had lapsed and had not been renewed on the date of the accident, but, following its earlier line of decisions, directed the insurer to satisfy the enhanced award to the deceased conductor's mother and recover it from the owner.
Issues
- Whether the insurer was entitled to avoid liability where the driver's licence had expired and was not renewed on the date of the accident.
- Whether, even so, the insurer should be directed to pay the claimant and recover the amount from the insured owner ('pay and recover').
Provisions considered
- Section 149(2)(a)(ii), Motor Vehicles Act, 1988Held that the insurer could validly raise the defence that the driver of the offending vehicle was not duly licensed, since his licence had expired and was renewed only after the accident; the conditions for absolving the insurer were met. (¶ 6)
Held
- Where the driver's licence had expired before the accident and was renewed only afterwards, the driver was not duly licensed on the date of the accident and the insurer was entitled to avoid liability under Section 149(2)(a)(ii) of the Motor Vehicles Act, 1988. (¶¶ 3.3, 6, 6.1)
- Although the correctness of the 'pay and recover' approach had been doubted in Parvathneni, that reference was never answered and the question was left open; the earlier decisions (Swaran Singh, Shamanna, Parminder Singh and others) applying the principle continued to be followed. (¶¶ 5, 5.1, 5.2, 5.2.1, 5.2.2)
- Following that series of decisions, it was proper to direct the insurer to satisfy the award to the claimant, with liberty to recover the amount from the insured owner of the vehicle. (¶ 7)
Result
Appeal allowed; the insurer was directed to satisfy the award as enhanced by the High Court, with liberty to recover the amount from the insured owner.