Telangana High Court
United Insurance Company Limited And … vs Eleswaram Ravi Teja And Another on 27 June, 2025
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THE HON'BLE SMT. JUSTICE TIRUMALA DEVI EADA
M.A.C.M.A.NO.552 OF 2021
JUDGMENT:
This appeal is filed by the Insurance Company, aggrieved by
the Order and Decree dated 17.05.2021 in M.V.O.P.No.231 of 2018
passed by the Chairman, Motor Accident Claims Tribunal-cum-
Judge, Family Court, Adilabad (for short “the Tribunal”).
2. For convenience and clarity, the parties herein are referred to
as they were arrayed before the Tribunal.
3. The case of the petitioners before the Tribunal was that on
10.01.2018, the petitioner was going on a motorbike bearing
No.TS-20-3127 with his father, being driven by the respondent
No.1 in a rash and negligent manner, dashed against another
motor bike bearing No.TS-01-EE-1489 in opposite direction, as a
result the petitioner and his father fell down and sustained
injuries. Immediately, he was shifted to Government Hospital,
Sirpur-T and from there he was referred to higher centre. On
15.01.2018 he was admitted in Medi Care Hospital, Karimnagar,
where he underwent surgery for treating his fractures. He was
discharged on 20.01.2018 and was advised with follow up
treatment. He incurred huge medical expenses and thus claimed a
compensation of Rs.3,00,000/-.
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4. The respondent No.1 remained ex-parte.
5. The respondent No.2 filed counter denying the averments of
petition with regard to the occurrence of the accident, age,
avocation and income of the injured-petitioner. It is further
contended that the owner and insurer of the bike on which the
petitioner was going i.e., the motor bike bearing No.TS203127 are
also necessary parties and that the rider of the motor bike on
which the petitioner was travelling also contributed to the accident.
6. Based on the above pleadings, the Tribunal has framed the
following issues for consideration:-
1. Whether accident occurred on 10.01.2018 at about 21:00
hours near Arkaguda Bus Stage due to rash and negligent
driving of motor cycle No.TS01EE1489 by its driver/1st
respondent ?
2. Whether the petitioner is entitled for compensation? If so, to
what amount and from whom?
3. To what relief ?
7. To prove their case, the petitioners got examined PW1 and
Exs.A1 to A13 were marked. On behalf of the respondents RW1
was examined and Exs.B1 and B2 were marked.
8. Based on the evidence on record, the Tribunal has awarded a
compensation of Rs.2,05,000/-. Aggrieved by the same, the present
appeal is preferred by the Insurance Company.
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9. Heard the submissions of Sri V. Venkata Rami Reddy,
learned counsel for the Insurance Company. None appeared on
behalf of the respondents.
10. The learned counsel for the appellant has submitted that the
accident occurred due to the negligence of the rider of the motor
bike bearing No.TS203127 on which the injured-petitioner was
going as a pillion rider. He further submitted that the Tribunal
failed to consider the averments of the charge sheet and fixed the
liability on the rider of the motor bike bearing No.TS-01-EE-1489.
He further argued that the rider of the motor bike bearing No.TS-
01-EE-1489 did not have valid driving license as on the date of the
accident and that he was charge sheeted under Section 181 of
Motor Vehicles Act. And that the Tribunal ought to have considered
the said fact and atleast could have applied the principle of pay
and recovery. He therefore, prayed to impose liability on the owner
and insurer of both the motor bikes and also prayed to order for
pay and recovery.
11. Based on the above contentions, this Court frames the
following points for determination:
1. Whether the accident has not occurred due to the rash and
negligent driving of the rider of the motorbike bearing No.TS01-EE-
1489?
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2. Whether the rider of the bike bearing No.1489 did not
possess valid driving license. If so, whether the
Insurance Company is liable to pay compensation?
3. Whether the order and decree of the Tribunal need any
interference?
4. To what relief?
12. Point Nos.1 & 2:
a) The contention of the appellant counsel is that two motor
bikes were involved in the accident and that the accident occurred
in opposite direction and that there was rash and negligence by the
riders of both the motor bikes and that contributory negligence has
to be attributed to the owners and insurers of both the vehicles.
b) A perusal of the FIR under Ex.A1 and charge sheet under
Ex.A3 reveals that the crime is registered and charge sheet is filed
against respondent No.1 i.e., Made Durgaiah who is the rider of the
motor bike bearing No.TS01EE1489. The contents of the charge
sheet reveal that the petitioner was going along with his father on a
motor bike bearing No.TS203127, while so another motor bike
bearing No.TS01EE1489 being driven by the accused Made
Durgaiah in a rash and negligent manner at a high speed, came
and hit against their bike, as a result of which he fell down and
sustained injuries and that his father succumbed to injuries. The
evidence of PW1 who is an injured witness also reveals the same.
There is no whisper about any contributory negligence on part of
the rider of the motor bike bearing No. TS203127. Therefore, no
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contributory negligence can be attributed to the rider of the motor
bike bearing No.TS203127. Hence, it is held that the accident
occurred due to the rash and negligent driving of the owner-cum-
rider of the bike bearing No. TS01EE1489.
c) Further Ex.A3 reveals that the accused was charge sheeted
under Section 181 of Motor Vehicles Act along with IPC offences.
Thus, the contention of the Insurance Company is that the
accused-driver did not possess valid driving license.
d) To prove their contention, they got examined RW1 who is the
A.O of the Insurance Company. In his cross examination, he has
admitted that the policy was in force as on the date of the accident.
But, no suggestion was given to RW1 by the petitioners counsel
that the driver had valid driving license. The respondent No.1 who
is the driver-cum-owner of the crime vehicle remained ex-parte.
Thus, it is an admitted fact that the driver of the offending vehicle
did not possess valid driving license. Therefore, it is held that the
driver of the offending vehicle did not possess valid driving license.
e) In Shammaanna and Another Vs. Divisional Manager,
Oriental Insurance Company 1, wherein the Apex Court has held
that the doctrine of pay and recovery has to be made applicable,
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(2018) 3 TAC 677
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when the driver does not possess a valid driving license to cover
the third party risk.
f) In the latest judgment of Hon’ble Apex Court dated 1.7.2019,
rendered in Parminder Singh vs. New India Assurance
Company Limited & Others 2, it is held that if no driving license
is possessed by the driver of the offending vehicle, the principle of
`pay and recovery’ can be ordered to direct the Insurance Company
to pay the compensation to the victim and then recover the same
from the owner of the offending vehicle.
g) Thus, in the light of the said decisions and in view of the
above held discussion, it is held that the Insurance Company has
to pay the compensation in the first instance and then recover the
same from the owner and driver of the crime vehicle.
Point Nos.1 and 2 are answered accordingly.
13. Point No.3:-
In view of the findings arrived at point No.1 and 2, it is held
that the order of the Tribunal needs to be modified with regard to
the liability of the insurer holding that they shall pay the
compensation to the claimant and then recover from the owner of
the bike.
Point No.3 is answered accordingly.
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(2019) 7 SCC 217
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14. Point No.4:-
In the result, the appeal is partly allowed modifying the
Judgment and Decree of the Tribunal with regard to the liability
fastened on the appellant and the appellant/Insurance Company
shall pay compensation and recover the same from the insured. No
costs.
Miscellaneous petitions, pending if any, in this appeal, shall
stand closed.
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JUSTICE TIRUMALA DEVI EADADate:27.06.2025
ds