Skip to content
Order
  • Library
  • Features
  • About
  • Blog
  • Contact
Get started
Book a Demo

Order

At Order.law, we’re building India’s leading AI-powered legal research platform.Designed for solo lawyers, law firms, and corporate legal teams, Order helps you find relevant case law, analyze judgments, and draft with confidence faster and smarter.

Product

  • Features
  • Blog

Company

  • About
  • Contact

Legal

  • Privacy
  • Terms

Library

  • Acts
  • Judgments
© 2025 Order. All rights reserved.
  1. Home/
  2. Library/
  3. High Court Of Jammu And Kashmir/
  4. 2024/
  5. February

Oriental Insurance Co Ltd. vs. Nek Mohd.and Ors

Decided on 29 February 2024• Citation: Mac App/6/2020• High Court of Jammu and Kashmir
Download PDF

Read Judgment


                                                              Serial No. 26         
               HIGH   COURT    OF  JAMMU     & KASHMIR     AND   LADAKH             
                                       AT  JAMMU                                    
              Case:-  Mac  App No. 06/2020                                          
              Oriental Insurance Co. Ltd.,           Appellant(s)/Petitioner(s)     
                                                  …..                               
              Dhar Road, Udhampur,                                                  
              Acting through its Manager Incharge, Oriental                         
              Insurance Co. Ltd. 3rd Party Hub Town Hall,                           
              Jammu                                                                 
              Sh. Duni Singh Motten age 58 years.                                   
                             Through:  Mr. Suneel Malhotra, Advocate.               
                          Vs                                                        
                1. Nek Mohd. S/o Abdul Mazid                                        
                   R/o Dhramni Tehsil Billawar District Kathua                      
                   (Claimant)                                                       
                2. Gulam Abas alias Mohd. Abas                                      
                   S/o Abdul alias Abdullha,                                        
                   R/o Lohai at present Dargara Pull                                
                   Tehsil Billawar, District Kathua.                                
                   (Driver of the offending vehicle No. JK02-H/5789)                
                3. Mohd Iqbal Wani                                                  
                   SW/o Din Mohd Wani,                                              
                   R/o Bhadharwah District Doda at present Malik Market Narwal, C/o Sahni
                   Motors 19, Palace Road Panjtirthi, Jammu.                        
                   (Owner of the truck No. JK02H/5789)                              
                                                           .…. Respondent(s)        
                             Through:  Mr. Jagpal Singh, Advocate.                  
              Coram:                           JAVED  IQBAL  WANI,  JUDGE           
                       HON’BLE   MR. JUSTICE                                        
                                         ORDER                                      
                                       (29.02.2024)                                 
              (ORAL)                                                                
              01.     In the instant appeal, award dated 23.11.2019 (for short      
                                              ) passed by the Motor  Accident       
                      “the impugned   award”                                        
                      Claims Tribunal, Kathua (for short              ) in the      
                                                       “the Tribunal”               
                      claim petition titled as                                      
                                            “Nek Mohd   Vs Gulam  Abas  alias       

                                        2                                           
                                                            Mac App No. 06/2020     
                                          has been thrown  challenge to by the      
                      Mohd  Abas  & Ors.”                                           
                      Insurance Company    appellant herein.                        
                                         –                                          
              02.     Facts emanating  from the record would  reveal that the       
                      respondent 1 herein filed a claim petition under Section      
                      166 of the Motor Vehicles Act, 1988 for compensation for      
                      the injuries sustained by him  in  a vehicular accident       
                      having taken place on 02.09.2011  at Ganeer  Bouli near       
                      Mahanpur   at Dhar Road  due  to the rash and negligent       
                      driving of the driver of the vehicle bearing registration No. 
                      JK02H/5789.                                                   
                      In the  claim said petition, the claimant/respondent 1        
                      herein besides  impleading the  driver of the offending       
                      vehicle as respondent, also impleaded the owner  of the       
                      offending vehicle as well as the Insurance  Company           
                                                                            –       
                      appellant herein with whom   the  offending vehicle was       
                      insured on the date of accident.                              
              03.     Upon  entertaining the claim petition, the Tribunal issued    
                      notice to  the respondents  in response  to which   the       
                      respondents  1 and  2 i.e. the driver and owner  of the       
                      offending vehicle did neither appear not contest the claim    
                      petition, however, the respondent 3 Insurance Company         
                                                        –                           
                      appeared  and  filed its objections to the claim petition     
                      whereafter, on the basis of the pleadings of the contesting   
                      parties, the Tribunal framed the following issues:-           

                                        3                                           
                                                            Mac App No. 06/2020     
                            (i) Whether an accident occurred on 02.09.2011 at about 
                                745 PM, at Ganeer Bouli, near Mahanpur, at Dhar Road,
                                due to rash, negligent and careless driving of Gulam
                                Abas alias Mohd Abas thereby causing injuries to the
                                petitioner.? (OPP)                                  
                            (ii) If issue no. 1 is proved in affirmative, whether   
                                petitioner is entitled to the compensation and to what
                                extent? (OPP)                                       
                            (iii) Whether the offending vehicle was being used in   
                                contravention of registration certificate and in violation
                                of terms and conditions of the policy of Insurance? 
                                (OPR-3)                                             
                            (iv) Whether the driver of the alleged vehicle did not  
                                possess valid/effective driving license to drive the
                                particular class of vehicle? (OPR-3)                
                            (v) Relief. (OP Parties)                                
              04.     The claimant/respondent  1 herein in order to prove the       
                      issues (i) & (ii), onus whereof to prove the same was put     
                      upon  him by the Tribunal besides appearing himself as a      
                      witness also examined witnesses, namely, Gulam  Haider,       
                      Qamar  Din  and Dr. Vikas Padha  whereas the Insurance        
                      Company     appellant herein examined two  witnesses in       
                                –                                                   
                      support  of the issue, onus whereof  was  laid upon  it,      
                      namely, Sanjay Kumar    Junior Assistant in the Office of     
                                            –                                       
                      ARTO,   Udhampur    and  Surinder  Kumar   Bhat   being       
                      Administrative Officer of the Insurance Company.              
              05.     The  Tribunal upon   adjudication of the claim  petition      
                      passed    the     impugned     award     holding    the       
                      claimant/respondent 1 herein entitled to the compensation     
                      amounting  to Rs. 3,73,000/- along with interest @ 6.5%       
                      per annum  from the date of institution of the claim petition 
                      till the date of its payment by the respondent 3/appellant    

                                        4                                           
                                                            Mac App No. 06/2020     
                      herein while holding the Insurance Company    appellant       
                                                                  –                 
                      herein liable to indemnify  the  insured owner  of  the       
                      offending vehicle.                                            
              06.     The  appellant-Insurance Company   has  challenged  the       
                      impugned  award  on the following grounds urged  in the       
                      instant appeal:-                                              
                        a. That the section 3 of the Motor Vehicle act of 1988 provides
                        ―                                                           
                        that no person shall drive a motor vehicle in any public place
                        unless he holds the effective driving licence issued to him 
                        authorising him to drive the vehicle and no person shall so drive
                        a Transport vehicle other than the Motor Cab or Motor Cycle 
                        hired for his own use or rented under any scheme made under 
                        [2) section 75 unless his driving licence entitled him to do so.
                        The section 10(2) of the Motor Vehicle Act of 1988 provides form
                        and contents of the driving licence to drive section 10 provides
                        the classes of licence as:-                                 
                             a. Motor cycle without gear,                           
                             b. Motor cycle with gear,                              
                             c. Invalid carriage,                                   
                             d. Light Motor Vehicle                                 
                             e. Transport vehicle                                   
                             f. Road Roller                                         
                             g. Motor vehicle of specific description.              
                         The Section 14 of the Motor Vehicle Act provides as:-      
                         14(2) The driving licence issued or renewed under this act shall
                             a. In all cases of licence to drive the transport vehicle, be
                                effective for a period of 3 years {provided} …….    
                             b. In case of any other license (i) if the person obtaining
                                the license, either originally or on renewal thereof has
                                not attained the age of 50 years on the date of issue
                                or as the case may be renewal thereof.              
                              [A] Be effective for a period of 20 years from the date of
                                such issue or renewal or                            
                              [B] Untill the date on which the person attains the age of
                                50 years whichever is the earlier………                
                        That herein the present case the driver was holding licence No.
                        5496/2001 issued by ARTO Udhampur for Light Motor Vehicle   
                        (LMV) non transport and Motor Cycle with gear. The said licence
                        was valid for the period 15-05-2001 up to 14-05-2020, the   
                        certificate of the authority is annexed and is marked as    
                        Annexure-IV with this appeal.                               

                                        5                                           
                                                            Mac App No. 06/2020     
                        The vehicle/ Truck No. Jk02-H/5789 was a commercial vehicle 
                        on the date of alleged accident. A copy of Registration certificate
                        (R. C) of the said vehicle is enclosed herewith and is marked as
                        Annexure-l/’with this appeal. Therefore, the vehicle/ Truck 
                        bearing registration No. JK02-H/5789 is a commercial vehicle
                        and the driver respondent No.2 was not holding valid and    
                        effective driving licence to drive the same i.e to drive the
                        transport/commercial vehicle.                               
                        "Therefore, even if the name and address of the driver is   
                        disclosed, it is absolutely impossible for the person to find out
                        and lead evidence whether he holds a valid driving licence or not
                        unless complete details viz the date of issuance and number of
                        the licence is given, the section 106 of the evidence act lays
                        down that if any fact is especially within the knowledge of any
                        person, the burden of proving that fact is upon him illustration
                        (b) of this section is ’A’ is charged with travelling on a railway
                                        —                                           
                        without ticket. The burden of proving that he had a ticket is on
                        him. There cannot be even a slightest doubt that holding of a
                        driving licence is especially within the knowledge of the person
                        concerned as no one also can have the knowledge of the said 
                        fact. This will be more so in situations covered by section 149 of
                        the act as the insurance company cannot have any knowledge  
                        regarding the driving licence of the driver of the vehicle which is
                        involved in an accident. Therefore the burden to prove that the
                        driver of the vehicle had a valid driving licence is upon the owner
                        of the vehicle and not upon the insurance company".         
                        That applying the above said principle, the Learned Presiding
                        Officer MACT, Kathua, ought to have drawn the adverse       
                        inference against the respondent driver and owner  i.e      
                        respondent No.2 and 3 who have failed to produce the driving
                        licence. The onus of the issue in the given circumstances was on
                        the owner and driver who have failed to discharge the same. 
                        Hence by  drawing the adverse inference against the said    
                        respondent, the Learned Presiding Officer ought to have granted
                        the recovery rights to the appellant/ insurer by applying the
                        principle as laid down in case titled NIC V/s Swaran singh. That
                        since the learned Tribunal has not followed the law as laid 
                        down. Therefore the impugned award is illegal and bad in the
                        eye of law, therefore may kindly be set a side and the liability if
                        The learned Presiding Officer MACT, Kathua has wrongly applied
                        the judgement as reported in AIR 2017 SC 3668 titled Mukund 
                        Dewangan V/s Oriental insurance co.                         
                        The  section 14 specifically provides that the transport    
                        /commercial vehicle’s validity period is 03 years. Hence the
                        finding as being returned by the learned presiding Officer, 
                        MACT, Kathua to this extent is not in accordance with law   
                        therefore, is illegal and bad in the eye of law. The driver as per
                        the law was not holding the valid and effective driving licence to
                        drive the commercial vehicle/ transport vehicle, therefore the
                        learned Presiding Officer, MACT, Kathua ought to have       
                        exonerated the appellant from the liability and the liability under

                                        6                                           
                                                            Mac App No. 06/2020     
                        Motor Vehicle Act ought to have been fixed on the respondent
                        No.2 and 3 herein. Therefore the impugned award is not in   
                        accordance with law, therefore may kindly be set a side and the
                        liability may kindly be fixed on the respondent No.2 and 3  
                        herein.                                                     
                        b. That the appellant herein had issued a notice under section
                        149 of Motor Vehicle Act of 1988 to the respondent No.2 and 
                        herein to produce the vehicular documents, the respondent No.2
                        and 3 failed to submit the same. A copy of the notice under 
                        section 149 of Motor vehicle Act dated 07- 03-2014 is annexed
                        herewith and is marked as Annexure-(VI) with this appeal. That
                        in such an event when the respondent owner and driver failed to
                        produce the vehicular documents despite notice, the Learned 
                        Presiding Officer MACT, Kathua ought to have drawn the      
                        adverse inference against the said respondents in accordance
                        with section 106 of the Evidence Act as the vehicular documents
                        are in the control and possession of respondent No.2 and 3  
                        herein, the Hon’ble Division Bench of Allahabad High Court in a
                        case titled NIC V/s Brij Pal Singh reported as 2007 ACJ 1274 in
                        para No.17 has held as under:- the last lines of the para 17 are
                        as:-                                                        
                        any may kindly be fixed on the respondent owner and driver i.e
                        respondent No.2 and 3 herein and the appellant company may  
                        kindly be exonerated from the liability.                    
                        c. That as admitted by the respondent No.l/ claimant that the
                        claimant by profession is having Dairy Unit however was     
                        travelling in the said truck alleged to be as a labourer. The
                        occupation of the claimant/ respondent No.l herein whatsoever
                        maybe but while travelling in the vehicle, the status of the
                        respondent No.l is that of a gratuitous passenger. That since the
                        petitioner was travelling in the goods vehicle as a gratuitous
                        passenger hence the appellant company is not liable to      
                        indemnify the insured owner. That the Hon’ble Supreme Court 
                        of India in a case reported as AC] 2008 SC page 6 and 2018  
                        SCCR 841 [SC) has held that he insurance company is not liable
                        to indemnify the insured owner of the vehicle in case the insured
                        owners goods vehicle carry a gratuitous passenger. The Learned
                        Presiding Officer has failed to appreciate the facts and that of
                        the status of the claimant/ respondent No.l while travelling in
                        the goods vehicle as that of a gratuitous passenger, therefore
                        ought to have exonerated the Insurance Company/ appellant   
                        herein from the liability. Hence the impugned award is illegal
                        and bad in the eye of law and the liability if any may kindly be
                        fixed on the insured owner of the vehicle as the objections in
                        this regard was taken before the Learned Tribunal.          
                        d. That the respondent No.l claimant has contributed in the 
                        alleged accident. The claimant when the vehicle was moving, 
                        open the window and because of the sudden jerk fell down. The
                        respondent No.l ought not to have opened the window when the
                        vehicle was moving. That this act of the respondent No.l of 
                        opening the window all of a sudden became the cause of the  

                                        7                                           
                                                            Mac App No. 06/2020     
                        accident. The Learned Tribunal has failed to take the note of the
                        same. Therefore the impugned award is illegal and bad hence 
                        may kindly be slashed down for the reasons of contributory  
                        negligence on the part of the respondent No.l in the alleged
                        accident.                                                   
                        e. That the Learned Presiding Officer MACT, Kathua while    
                        awarding the amount of compensation under the head of loss of
                        earning during the period the petitioner could not work has 
                        further awarded the amount of Rs. 30,000/- and while awarding
                        the compensation on account of loss of income has applied the
                        multiplier system and thus awarded an amount of Rs. 1,      
                        68,000/-, therefore the amount as awarded separately under the
                        head amounts to duplicity (awarding twice for the same case).
                        The Learned presiding Officer ought not to have awarded Rs. 
                        30,000/- as compensation separately for loss of earning during
                        the period the petitioner could not work. The Learned Presiding
                        Officer has awarded the compensation on account of pain and 
                        suffering as well as for the loss of amenities of life @ Rs.
                        70,000/- for both head s i.e. under the head G & H. Whileas 
                        there is no evidence on record to support the same, therefore the
                        compensation as awarded under these heads i.e G & H is again
                        on higher side and needs to be slashed down. The amount as  
                        awarded by the learned Tribunal, along with interest @ 7.5 % is
                        not in accordance with law and needs to be slashed down.    
                        f. That the other detailed grounds shall be made at the time of
                        hearing to substantiate the fact that the impugned award is 
                        illegal and bad in the eye of law.                          
                      Heard  learned counsel for the parties and perused the        
                      record.                                                       
              07.     Perusal   of  the   record  would    reveal  that   the       
                      claimant/respondent 1 herein in order to prove issues (i) &   
                      (ii) qua the happening  of the accident on  02.09.2011        
                      resulting into serious injuries to him caused by the rash     
                      and negligent driving of the offending vehicle as also the    
                      quantum  of compensation  he became  entitled thereto for     
                      the said injuries sustained by him, appeared as his own       
                      witness, besides  examining  three more  above  named         
                      witnesses.                                                    

                                        8                                           
                                                            Mac App No. 06/2020     
                      Perusal of the statements of claimant/respondent 1 herein     
                      as also the other witnesses produced by him in the witness    
                      box tend to show  that the claimant/respondent 1 herein       
                      proved that  the accident took place on  02.09.2011  at       
                      Ganeer Bouli near Mahanpur  at Dhar Road caused  by the       
                      offending vehicle having been driven by its driver rashly     
                      and negligently resulting into serious injuries to him and in 
                      this regard besides producing the aforesaid witnesses had     
                      also relied upon the charge-sheet filed under Section 173     
                      Cr.P.C pertaining to the accident in question being FIR No.   
                      06/2012  for offence under Sections 279, 337 and 338 RPC      
                      with Police Station Basohli, and in order to prove  the       
                      nature of injuries suffered by him as also the degree of      
                      disability sustained by him on account of the said injuries,  
                      has produced the above named  Doctor as witness besides       
                      producing the Disability Certificate issued by Chief Medical  
                      Officer, Health  and  Family   Welfare, Kathua   which        
                      certificate reveals that the petitioner had been diagnosed as 
                      that of non-united fracture of neck of femur left side with   
                      shortening of left lower limb and wasting of left thigh and   
                      leg with post-traumatic stiffness of left hip and left knee   
                      with pain constituting 35% permanent disability.              
                      The  claimant/respondent 1  herein has also proved  the       
                      income  he was  earning and also the loss of income on        
                      account  of the  disability suffered in the accident in       

                                        9                                           
                                                            Mac App No. 06/2020     
                      question besides the expenses incurred by him for receiving   
                      the treatment for the injuries.                               
              08.     On the contrary the Insurance Company   appellant herein      
                                                            –                       
                      as has been noticed in the preceding paras produced the       
                      above named  two witnesses in order to prove issues (iii) &   
                      (iv) that the  offending vehicle was  being  driven  in       
                      contravention of the registration certificate and in violation
                      of the terms  and conditions of the policy of insurance       
                      besides that the driver of the offending vehicle was not      
                      possessed with valid and effective driving license on the     
                      date of accident.                                             
                      Perusal of the record would  reveal that the Insurance        
                      Company   during the  course of leading of its evidence       
                      showed  that  the driver of  the offending vehicle was        
                      competent  to drive Light Motor Vehicle (LMV) and not a       
                      transport vehicle, thus, not making it liable to pay any      
                      compensation, however, the Tribunal while considering the     
                      aforesaid position discarded this plea and relied upon        
                      Section 2(21) of the  Motor  Vehicles Act, 1988  which        
                      provides that a Light Motor Vehicle (LMV) would include a     
                      transport vehicle as per the weight prescribed in Section     
                      2(21) read with Sections 2(15) and 2(48) taking further       
                      cognizance of the amendment   carried out in the Motor        
                      Vehicles Act, 1988 by virtue of Act of 54 of 1994 whereby     

                                        10                                          
                                                            Mac App No. 06/2020     
                      ―medium  goods  vehicle‖ also came to be substituted in       
                      clause (e to h) of Section 10(2) substituting the expression  
                      ―transport vehicle‖ therein the said clauses, thus, not       
                      excluding the transport vehicle.                              
              09.     The Tribunal has also considered the evidence led by the      
                      Insurance Company    appellant herein in support of issues    
                                         –                                          
                      (iii) & (iv), that the vehicle was used in contravention of the
                      registration certificate and in violation of terms and        
                      conditions  of  the  policy, to  be  precise  that  the       
                      claimant/respondent 1 herein was travelling in a transport    
                      vehicle, thus, not covered by the policy of the insurance.    
                      The Tribunal though has not returned any specific finding     
                      on the said issue, yet a bare perusal of the insurance policy 
                      produced by the appearing counsel for the appellant would     
                      tend to show  that the policy pertaining to the offending     
                      vehicle besides covering the driver, conductor and cleaner    
                      of the vehicle also covers coolie and it emerges from the     
                      claim petition that the claimant/respondent 1 herein had      
                      specifically pleaded in the claim petition that he was        
                      working  as a  labourer with a  vehicle and  that while       
                      working, as such, met with an  accident in the offending      
                      vehicle suggesting that the claimant/respondent 1 herein      
                      at the time of the accident was attached as a labourer with   
                      the offending vehicle, thus, plea of the Insurance Company    
                        appellant herein that the terms and conditions of the       
                      –                                                             

                                        11                                          
                                                            Mac App No. 06/2020     
                      Insurance Policy or the fitness and registration certificate of
                      the offending vehicle were violated is held to be grossly     
                      misconceived.                                                 
              10.     A further perusal of the impugned award would reveal that     
                      the Tribunal has been alive to the fact and circumstances     
                      of the case, the evidence on  record led by the parties       
                      inasmuch  as the legal position qua the assessment and        
                      computation   of  the  amount    of  compensation   the       
                      claimant/respondent  1   herein  was  entitled to  and        
                      consequently, has passed a just and fair to the sum of Rs.    
                      3,73,000/- along with interest @ 6.5% per annum in favour     
                      of the claimant.                                              
              11.     Viewed thus, the Tribunal cannot be said to have faulted in   
                      the matter. Resultantly, appeal fails and is, accordingly,    
                      dismissed                                                     
                                .                                                   
              12.     The  Registry is directed to release the award amount         
                      deposited by the appellant-Insurance Company in favour of     
                      the claimant along with interest, if any, accrued thereon     
                      subject to his proper verification and identification by his  
                      counsel.                                                      
                                                 (JAVED   IQBAL  WANI)              
                                                         JUDGE                      
              JAMMU                                                                 
              29.02.2024                                                            
              Bunty                                                                 
                               Whether the order is speaking: Yes                   
                              Whether the order is reportable: Yes