BHUWAN SINGH versus M/S ORIENTAL INSURANCE COMPANY LTD. & ANR.

Citation: [2009] 4 S.C.R. 195 · Decided: 05-03-2009 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed

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Judgment (excerpt)

[2009) 4 S.C.R. 195 
BHUWAN SINGH 
A 
v 
M/S ORIENTAL INSURANCE COMPANY LTD. & ANR. 
Civil Appeal No. 1537 of 2009 
MARCH 5, 2009 
B 
[S.B. SINHA AND DR. MUKUNDAKAM SHARMA, JJ.] 
Motor Vehicles Act, 1988 - s. 149 - Central Motor Vehicle 
Rules, 1989 - r. 4 - Tractor met with accident resulting in death 
\ 
of a person -Appellant owned the tractor and was also driving 
the same at the relevant time- Claim petition -Award passed c 
in favour of claimants - Appellant held a learner's licence 
which had expired and was not valid on the date of accident -
On that ground, insurance company denied its liability to 
reimburse the appellant in respect of the awarded amount -
Held: Appellant was not holding a valid and effective licence D 
at the time of the accident- Insurance company therefore was 
not bound to reimburse him in terms of the Contract of 
Insurance - Contract - Contract of insurance. 
A tractor met with an accident with a cycle resulting 
E 
in death of the person riding the cycle. Appellant owned 
the tractor and was also driving the same at the relevant 
time. The legal heirs of the deceased filed claim petition 
before the Motor Accidents Claim Tribunal. An award of 
Rs.1.32 lakhs was passed in favour of the claimants. 
F 
Placing reliance on the fact that appellant held a 
learner's licence which had expired and was not valid on 
the date of accident, the insurance company denied its 
liability to reimburse the appellant in respect of the 
awarded amount 
G 
.. 
The question which arose for consideration in the 
present appeal was whether the appellant was not holding 
a valid and effective licence at the time of the accident, 
195 
H 
196 
SUPREME COURT REPORTS 
(2009] 4 S.C.R. 
A and consequently the insurance company was 
exonerated from its liability to reimburse the appellant in 
respect of the awarded amount. 
Dismissing the appeal, the Court 
B 
HELD:1.1 Only because the appellant held a learner's 
licence which had expired and was not valid on the date 
of accident, he cannot be said to be duly licensed. It is 
true that despite expiry of a regular licence, it may be 
renewed, but no provision has been brought to notice of 
c this Court providing for automatic renewal of learner's 
licence. The Motor Vehicles Act, 1988 provides for grant 
of a learner's licence. It indisputably is a licence within 
the meaning of provisions thereof. A person holding a 
learner's licence is also entitled to drive a vehicle but it is 
0 
granted for a specific period. The terms & Conditions for 
grant of a learner's licence are different from those of a 
regular licence. Holding of a learner's licence is imperative 
for filing an application for grant of licence as provided 
for in Rule 4 of the Central Motor Vehicle Rules, 1989. 
Converse however is not true. [Para 14] [201-D-F] 
E 
1.2. The insurance company categorically raised the 
plea that the appellant was not holding a valid and 
effective licence. The burden of proof ordinarily would be 
on insurance company to establish that there has been a 
F breach of conditions of the contract of insurance. In this 
case, however, the burden in terms of Section 106 of the 
Evidence Act was on the appellant. He failed to discharge 
the said burden. [Para 16] [202-E-F] 
1.3. The driver was to show that he held licence in 
G respect of the vehicle for which he had filed an application. 
Filing of an application and grant thereof were pre-
requisites for holding a valid and effective licence. As on 
5-01-2001 i.e. the date of the accident, the appellant was 
not duly licensed as his learner's licence expired on 22-
H 12-2000. He filed an application for grant of licence much 
' 
BHUWAN SINGH V. M/S ORIENTAL 
197 
INSURANCE COMPANY LTD. & ANR. 
later. The insurance company was therefore not bound A 
to reimburse him in terms of the Contract of Insurance. 
[Para 21-22] [203-D-F] 
National Insurance Co. Ltd. v. Swaran Singh and Ors. • 
(2004) 3 SCC 297 and Ram Babu Tiwari v. United India 
Insurance Co. Ltd. & Ors. (2008) 8 SCC 165 - referred to. 
B 
Case Law Reference 
(2004) 3 sec 291 
(2008) a sec 1 ss 
referred to 
referred to 
Para 7 
Para 14 
CIVILAPPELLATE JURISDICTION: Civil Appeal No. 1537 
of 2009 
c 
From the Judgement and Order dated 03.04.2008 of the 
Hon'ble High Court of Uttarakhand at Nainital in Appeal from 
0 
Order No. 589 of 2006. 
Rachana Joshi lssar, Shailendra Kumar, Nidhi Tewari, for 
the Appellants. 
Majusha Wadhwa, Samina Sheikh, for the Respondent. 
T

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