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AIR 2007 SUPREME COURT 1563 ::2007 AIR SCW 2279
Supreme Court Of India
Hon'ble Judge(s): Arijit Pasayat, S. H. Kapadia , JJ

(A) Motor Vehicles Act (59 of 1988) , S.149, S.173(2)— Liability of insurer - Own damage claim - Logic of fake license, let insurer first pay etc. applied to claims relatable to third parties - Does not apply. Section 149 is part of Chap. XI which is titled 'Insurance of Motor Vehicles against Third Parties'. A significant factor which needs to be noticed is that there is no contractual relation between the insurance company and the third party. The liabilities and the obligations relatable to third parties are created only by fiction of Ss. 147 and 149 of the Act. Section 149 is beneficial one qua the third party. But that benefit cannot be extended to the owner of the offending vehicle. The logic of fake license has to be considered differently in respect of third party and in respect of own damage claims. The restrictions relating to appeal in terms of S. 173(2) does not also apply to own damage cases. The inevitable conclusion therefore is that the decision in Swaran Singh's case, 2004 AIR SCW 663, has no application to own damage cases. The conceptual difference between third party right and own damage cases has to be kept in view. The concept of purposive interpretation has no application to cases relatable to S. 149 of the Act. 2004 AIR SCW 663, Disting.(Para 17 24 37 38 ....

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