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The New India Assurance Co. Ltd., Madras 1. v. C.B Shankar And Others.
Judgment Summary — V. Ramaswami, J.
Factual and Procedural Background
Two appeals challenge a common order in O.P. 122 and 123 of 1982 before the Additional Motor Accidents Claims Tribunal (Court of Small Causes), Madras. A collision occurred between a scooter (TMP 2939) and a taxi (MSV 5202), resulting in injuries to the scooter driver and his minor son who was pillion-rider. Two claim petitions were filed: one by the scooter driver seeking Rs. 25,000 and one on behalf of the minor seeking Rs. 5,000. The Tribunal found the taxi driver's rash and negligent driving caused the accident and awarded compensation: Rs. 9,630 to the scooter driver and Rs. 2,200 to the pillion rider. The present appeals challenge the Tribunal's award insofar as the appellant contends the Insurance Company should not be held liable because the taxi driver did not possess a driving licence.
Legal Issues Presented
- Whether the Insurance Company is liable for the award when the driver of the insured vehicle did not possess a driving licence at the time of the accident.
- Whether the Insurance Company discharged the onus of proving that the driver never had a licence or was disqualified from holding a licence, as required by the proviso to S. 96(2)(b)(ii) of the Motor Vehicles Act.
Arguments of the Parties
Appellant's Arguments
- The appellant did not dispute that the taxi driver's rash and negligent driving caused the accident or that the Tribunal's quantification of compensation was correct.
- The appellant contended that the Insurance Company was not liable because the taxi driver did not have a driving licence, and therefore the Insurance Company could not be held liable under the policy.
- In support of this position, it was relied upon that the driver had been charged and convicted under relevant provisions of the Motor Vehicles Act and that the Insurance Company had issued notices to the owner and the owner's advocate to produce the driver's licence but the licence was not produced.
Tribunal / Respondent Position and Factual Assertions in Evidence
- The Tribunal held the taxi driver's rash and negligent driving caused the accident and awarded specified compensation sums to the claimants.
- Evidence showed the taxi driver was charged under S. 3 read with S. 2(21) of the Motor Vehicles Act in C.C. 11634 of 1981 and the vehicle owner was charged under S. 5; both pleaded guilty and were convicted.
- The vehicle owner (R.W.3) testified that the driver had been in his employment for about 2½ years prior to the accident and that during that time the driver had a driving licence; he also stated he lost contact with the driver after the accident.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| National Insurance Co. Ltd.1 v. Sugantha Kunthalambal | Establishes that the onus of proving a driver never had a licence or was disqualified from holding one is on the Insurance Company. | The Court relied on this authority to state that mere proof of non-possession of a licence at the time of the accident and conviction in criminal court is insufficient; the Insurance Company must discharge the onus of proving lack of licence or disqualification, which it had not done in this case. |
Court's Reasoning and Analysis
The Court first recorded the undisputed findings: the accident was caused by the taxi driver's rash and negligent driving and the Tribunal awarded compensation to the claimants.
The Court examined the Insurance Company's defence under the Proviso to S. 96(2)(b)(ii) of the Motor Vehicles Act, which negates insurer liability only where "the person driving holds a licence to drive the motor vehicle or has held and is not disqualified for holding or obtaining such a licence"—interpreted to place an onus on the Insurance Company to prove that the driver never had a licence or was disqualified from holding one.
The Court evaluated the steps actually taken by the Insurance Company to discharge that onus. The Company issued notices to the vehicle owner and the owner's advocate requesting production of the driving licence, but did not contact the driver directly, did not issue any notice to the driver calling upon him to produce a licence, and did not file a petition before the Tribunal to summon production of the licence. The Senior Assistant of the Company (R.W.1) admitted the investigator did not contact the driver.
The Court noted R.W.3's evidence that the driver had been employed for about 2½ years prior to the accident and that during that period the driver had a licence. There was no cross-examination of the owner on whether he had seen the licence or other aspects of that testimony. The Court also observed that it is unlikely a taxi driver in Madras would have driven for such a prolonged period without any licence, and the driver was not shown to be a person incapable of holding a licence (for example, a minor).
Applying the precedent that the onus lies on the Insurance Company, and given the absence of direct steps to summon or contact the driver or to obtain the licence, the Court concluded the Insurance Company had not discharged its burden of proof that the driver never had a licence or was disqualified from holding one.
Holding and Implications
Final Disposition: The appeals are dismissed. The Court agreed with the Tribunal's order that the Insurance Company is liable for the amounts awarded by the Tribunal.
Consequences and Costs: The Insurance Company remains liable to pay the compensation sums awarded by the Tribunal. The appeals were dismissed with costs; counsel's fee of one set was ordered in C.M.A. No. 264 of 1984.
The opinion does not purport to create or announce a new legal principle beyond applying the cited precedent that places the burden on the Insurance Company to prove lack of licence or disqualification.
V. Ramaswami, J.
1. These two appeals have been preferred against a common order in O.P 122 and 123 of 1982 on the file of the Additional Motor Accidents Claims Tribunal (Court of Small Causes), Madras. Due to a collision between a scooter TMP 2939 and a taxi MSV 5202, the driver of the scooter and the pillion rider, a minor son of the scooter driver, were injured. Two claim petitions were filed, one by the scooter driver and the other on behalf of the pillion rider, the minor son of the scooter driver. The scooter driver claimed Rs. 25,000 as compensation for the injuries sustained by him, while on behalf of the pillion rider, a petition claiming compensation of Rs. 5,000 for the injuries sustained by the minor was filed. The Motor Accidents Claims Tribunal held that the accident was due to the rash and negligent driving of the taxi and that the claimants are entitled to the compensation. However, the Tribunal held that the scooter driver was entitled to a sum of Rs. 9,630 and the pillion rider was entitled to a sum of Rs. 2,200 only. It is against this award, the present two appeals have been filed.
2. The appellant does not dispute in these appeals that the accident was caused by the rash and negligent driving of the taxi driver. Nor does the appellant question the quantum of compensation awarded by the Tribunal. But the appellant contended that the Insurance Company was not liable at all for the reason that the driver of the taxi did not have a driving licence and that, therefore, the Insurance Company could not be held liable.
3. It is in evidence that the driver of the taxi was charged under S. 3 read with S. 2(21) of the Motor Vehicles Act, in C.C 11634 of 1981 on the file of the V Metropolitan Magistrate's court, Egmore, and the owner of the vehicle was charged under S. 5 in the same proceeding Both pleaded guilty and they were convicted. Under the Proviso to S. 96(2)(b)(ii), the Insurance Company would not be liable unless “the person driving holds a licence to drive the motor vehicle or has held and is not disqualified for holding or obtaining such a licence’. There could be no doubt, therefore, that in order to escape the liability not only it should be proved that the driver of the vehicle was not having a licence at the time of the accident, but also the Insurance Company should prove that the driver was disqualified from holding or obtaining a licence or never had any licence at all. Merely proving that on the date of the accident the driver did not have a licence and that he pleaded guilty and was convicted tn the criminal Court, itself is not enough to hold that the Insurance Company is not liable for the claim. It has been held by a Division Bench of this Court also in the decision reported in National Insurance Co. Ltd.1 v. Sugantha Kunthalambal, that the onus of proving that the driver of the vehicle never bad a licence or was disqualified from holding a licence is on the Insurance Company.
4. We have therefore to see whether the Insurance Company in this case has discharged that onus. The circumstances relied on in this connection by the learned counsel for the Insurance Company is that they issued a notice to the owner of the vehicle and the advocate appearing for the owner of the vehicle to cause the production of the driver's licence and that they failed to do so. From this itself we cannot hold that either the Insurance Company has discharged its onus or has taken all the steps that are needed to prove that the driver had no licence at any time or that he was disqualified from driving. It is not disputed that the insurance Company was aware of the Dame and address of the driver. In fact, the address was available in all the proceedings in respect of this accident. However, as admitted by R.W 1, the Senior Assistant of the Company, who came and gave evidence on behalf of the Company, the investigator did not contact the driver of the vehicle, nor did they issue any notice to the driver calling upon him to produce the driving licence, if the driver had any. They could have also taken out a petition before the Tribunal itself to summon the production of the driving licence. That also has not been done. On the other hand we find that R.W 3 the owner of the vehicle, in his evidence stated that the driver was under his employment for over 2½ years prior to the accident and during that time he had a driving licence. He had also stated that immediately after the accident, he left his services and he could not contact him thereafter. Though he had specifically stated that the driver had a driving licence, there was no cross-examination of the owner in this regard, as to whether be had seen the driving licence or on any other aspect. It may also be mentioned that normally one is not expected to drive for such a long period as 2½ years without a licence at all, particularly a taxi in the Metropolitan city of Madras. We may also note that it is not disputed that he had been in the employment of R.W 3 as driver for 2½ years. In the circumstances, therefore, we are not persuaded to hold that the Insurance Company had discharged its onus of proving that the driver never had a licence or was disqualified from holding a licence. It is not the case of the Insurance Company that the nature of things is such that we can presume that the driver could not have had any licence at all. The driver was not shown to be a minor or any other person with legal infirmity who could not hold any driving licence at all for any reason. In the circumstances, therefore, we agree with the order of the Tribunal that the Insurance Company is liable for the amount awarded. The appeals accordingly fail and they are dismissed with costs. Counsel's fee one set in C.M.A No. 264 of 1984.
VCS.
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