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ORIENTAL INSURANCE CO. LTD. versus ZAHARULNISHA & ORS.

Citation: [2008] 7 S.C.R. 58 · Decided: 29-04-2008 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Case Partly allowed

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Judgment (excerpt)

[2008] 7 S.C.R. 58 
-t 
A 
ORIENTAL INSURANCE CO. LTD. 
v 
ZAHARULNISHA & ORS. 
(Civil Appeal No. 3055 of 2008) 
APRIL 29, 2008 
ยท-
B 
~ 
(S.B. SINHA AND LOKESHWAR SINGH PANTA, JJ.] 
Motor Vehicles Act, 1988 - s. 149 (2) and 10 (2) - Motor 
accident causing death - By two wheeler scooter - Driver of 
c the offending vehicle not holding valid licence - Claim for 
compensation - Motor Accident Claims Tribunal as well as 
High Court awarding compensation - Direction to insurance. 
Company to satisfy the award - On appeal, held: The driving 
of vehicle without a valid licence was in violation of s. 10 (2) -
D Hence Insurance Company not liable to pay the compensation 
).. 
- However, Insurance Company directed to satisfy the award 
with liberty to recover the same from the owner of the vehicle. 
Death was caused ,of a person due to accident from 
a two wheeler scooter. Legal representatives of the 
E deceased filed a petition claiming compensation. Motor 
Accident Claims tribunal held that the accident was due 
to rash and negligent driving of the scooter and awarded 
compensation in favour of the respondent-claimants and 
against the owner of the offending vehicle and the 
F insurance company. Insurance Company filed an appeal 
y 
contending that it was not liable to pay the compensation 
as the driver of the offending vehicle did not hold a valid 
licence to drive a two wheeler scooter and thus there was 
breach of provisions of Motor Vehicles Act, 1988. High 
G Court dismissed the appeal. Hence the present appeal. 
Partly allowing the appeal, the Court 
HELD: 1. The appellant-insurance company cannot 
ยท be held liable to pay the amount of compensation to the 
H 
58 
ORIENTAL INSURANCE CO. LTD. v. ZAHARULNISHA & 
59 
ORS. [LOKESHWAR SINGH PANlif., J.] 
" 
claimants for the death caused in road accident which A 
had occurred due to rash and negligent driving of scooter 
by driver thereof who admittedly had no valid and 
effective licence to drive the vehicle on the day of accident. 
'I 
The scooterist was possessing driving licence of driving 
. .{ 
HMV and he was driving totally different class of vehicle B 
...; 
' 
which act of his is in violation of Section 10(2) of Motor 
Vehicles Act. [Para 18] [69-A, B, C] 
National Insurance Company Limited v. Swaran Singh 
2004 (3) sec 297 - relied on. 
c 
2. It is directed that the appellant-insurance company 
though not liable to pay the amount of compensation, but 
in the nature of this case it shall satisfy the award and 
shall have the right to recover the amount deposited by it 
.. 
1 
along with interest from the owner of the vehicle, viz. D 
respondent No. 8, particularly in view of the fact that no 
appeal was preferred by him nor has he chosen to 
appear before this Court to contest this appeal. [Para 19] 
[69-C, DJ 
National Insurance Co. Ltd. v. Baljit Kaur and Ors. 2004 E 
(2) SCC 1 ; Oeddappa and Ors. v. Branch Manager, National 
Insurance Co. Ltd. 2008 (2) SCC 595 - relied on. 
CIVILAPPELLATE JURISDICTIO,N: Civil Appeal No. 3055 
')' 
of 2008. 
F 
From the Judgment and Order dated 12.7.2006 of the High 
Court of Judicature at Allahabad in First Appeal from Order No. 
1760 of 2006. 
M.K. Dua and Kishore Rawat for the Appellant. 
Girjesh Kumar Mall, Amit Pawan, Manish R. Sinha and T. 
G 
J 
Mahipal for the Respondents. 
The Judgment of the Court was delivered by 
LOKESHWAR SINGH PANTA, J. 1. Leave granted. 
H 
60 
SUPREME COURT REPORTS 
[2008] 7 S.C.R. 
A 
2. This appeal is against the judgment dated 1st July, 2006 
passed by the High Court of Judicature at Allahabad whereby 
and whereunder, appeal filed by the Oriental Insurance Company 
Limited challenging the award dated 26.04.2006 of the Motor 
Accident Claims Tribunal/Additional District Judge Khushi 
B 
Nagar in MAC No. 98/2002, has been dismissed. 
3. Briefly stated the facts leading to the filing of the appeal 
are as under:-
On 23.07.2001 at about 6:00 p.m. one Shukurullah was 
c going from Kasya Courts to his village Shivpur on a bicycle. A 
two wheeler scooter, be~aring registration No. UP 57 - 5901, 
being driven by one Ram Surat in a rash and negligent manner 
hit Shukurullah near Sapha P.S. Kasya and as a result thereof, 
Shurkurullah sustained ~1rievous injuries and died. The ill-fated 
0 scooter was owned by Vakilrao - respondent No. 8 herein. The 
legal representatives of deceased Shukurullah lodged a Claim 
Petition No. 98/2002 before the Motor Accident Claims Tribunal, 
Khushi Nagar/Additional Di

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