Where the driver held a valid licence, the insurer must indemnify the vehicle owner.

The claim arose from a motor accident on 21 July 2015, in which a lorry struck and fatally injured Karuppayee while she was walking along Avinashi Road.

The Tribunal found the lorry driver negligent and awarded compensation of Rs. 2,20,000, but, finding that the driver lacked a valid and effective licence, directed the insurer to pay and recover the amount from the vehicle owner.

The owner appealed against the pay-and-recover direction and applied under Order XLI Rule 27 CPC to produce a copy of the driver’s licence as additional evidence, stating that it had not been available during the Tribunal proceedings.

Section 173 of the Motor Vehicles Act, 1988, provides for an appeal to the High Court from an award of a Claims Tribunal.

Order XLI Rule 27 CPC governs the reception of additional evidence in an appeal.

It stated that, where the offending vehicle was insured and the policy was in force, the insurer was liable to indemnify the owner in accordance with the policy terms.

The Court accepted the owner’s explanation that the driver had left employment and could not initially be contacted, and allowed the application to receive the licence copy as Ex.R7.

It found from Ex.R7 that the licence was valid from 30 December 2011 to 29 December 2031 and concluded that the driver held a valid licence on the accident date.

On that basis, it held that the Tribunal’s finding of no valid licence, and the resulting pay-and-recover direction, could not stand.

As the policy was in force, the insurer was required to indemnify the owner.

The Court set aside the pay-and-recover direction and ordered the insurer to deposit the Tribunal’s award, with interest and costs, after crediting any amount already deposited.

The claimant was permitted to withdraw the amount in accordance with the Tribunal’s order, subject to deduction of any sum already withdrawn.