An owner cannot compel the insurer to pay first where the driver lacked the requisite licence.

The Motor Accident Claims Tribunal awarded compensation of ₹3,63,000, with proportionate costs and interest at 7.5% per annum, and fastened liability on the driver and owner of the offending vehicle, exonerating the insurer

The owner appealed, contending that the driver held a valid and effective licence with an endorsement to drive a transport vehicle and that the Tribunal should have ordered the insurer to pay the claimants and recover the amount from the owner

The licence records showed that the hazardous-materials endorsement was made on 19 October 2011, after the accident on 2 January 2011; the Court also noted that the records did not establish authority to drive an HGV or HCV

1. Whether the owner was entitled to an order directing the insurer to pay the compensation to the claimants and recover it from the owner, given the driver’s licence position on the accident date

2. Whether the owner’s appeal against the Tribunal’s allocation of liability should be allowed

The Court noted that a third-party claimant may recover compensation notwithstanding a licensing endorsement issue, particularly where the insurance policy covers the accident date

It observed that a pay-and-recover order might have been appropriate in an appeal brought by the claimant, but did not extend that relief to the owner in this appeal

The judgment cites no statute or precedent; its decision rests on the licence evidence, the policy coverage, and the circumstances in which the owner sought the relief

The licence evidence showed that the hazardous-materials endorsement post-dated the accident, and the RTO records did not show authority to drive an HGV or HCV

Although the Court recognised the claimants’ third-party entitlement to recover under a policy covering the accident date, the owner—not the claimants—sought a pay-and-recover order after producing the licence evidence and depositing the award amount

In those circumstances, the Court found no basis to interfere with the Tribunal’s decision to place liability on the driver and owner and exonerate the insurer

It directed the Tribunal to disburse the entire compensation amount held in fixed deposit to the claimants