A non-jurisdictional RTO witness cannot establish that a driver lacked a valid licence.

On 17 November 2018, the first respondent was injured while riding as a pillion passenger on a motorcycle that collided with a road median.

He claimed ₹50,00,000 in compensation.

The Motor Accidents Claims Tribunal partly allowed the claim, awarding ₹36,22,160 with interest at 7.5% per annum and directing the insurer to pay and recover the amount.

The insurer appealed, contending that the motorcycle’s driver had no valid driving licence.

The accident and its manner were not disputed before the High Court.

1. Whether the insurer established that the driver lacked a valid driving licence and thereby breached the policy conditions, warranting interference with the pay-and-recover direction.

2. Whether the Tribunal’s compensation award was excessive and required modification.

The appeal was brought under Section 173 of the Motor Vehicles Act, 1988.

The Court applied the principle that a third-party claimant should not be made to suffer because of the driver’s breach of policy conditions, while retaining the insurer’s right to recover compensation from the responsible party where so ordered.

It also considered whether the Tribunal’s award was just and reasonable on the evidence, including the Medical Board’s disability assessment.

No judicial precedents were cited.

The insurer relied on evidence from an official of the Regional Transport Office, Tiruvallur, and documents said to show that no licence had been issued to the driver.

The Court held that this official was not a sufficient witness to establish that the driver lacked a valid licence at the time of the accident; it therefore found no basis to disturb the Tribunal’s pay-and-recover direction, particularly as the claimant was a third party.

On quantum, the Tribunal had considered the Medical Board’s assessment of 80% locomotor disability and the other available materials.

The Court found the compensation reasonable and not excessive.

It directed the insurer to deposit the amount within four weeks; the Tribunal was to transfer it to the claimant by RTGS within the following two weeks.

The insurer retained liberty to recover the compensation from the second respondent, as ordered by the Tribunal.