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AIR 2004 SUPREME COURT 4882 ::2004 AIR SCW 5301
Supreme Court Of India
(From : Andhra Pradesh)*
Hon'ble Judge(s): Arijit Pasayat, C. K. Thakker , JJ

(A) Motor Vehicles Act (59 of 1988) , S.149(2)— Accident - Compensation - Denial of liability by insurer - Defences that are available - Plying of vehicle without valid permit - It amounts to infraction of law - Accident caused - Said defence would be available to insurer - Person without permit to ply vehicle cannot be placed at better pedestal vis-a-vis one who has permit, but has violated condition thereof - Insurer consequently would not be liable to pay compensation. A. A. O. No. 1646 of 1997, D/- 26-8-2002 (AP), Reversed. (Para 12) (B) Motor Vehicles Act (59 of 1988) , S.149— Accident compensation - Insurer proved to be not liable to pay compensation - However, considering beneficial object of Act, it would be proper for insurer to satisfy award, though in law it had no liability - For purpose of recovering amount paid from owner, insurer shall not be required to file a suit - It may initiate proceeding before Executing Court as if dispute between insurer and owner was subject-matter of determination before Tribunal and issue is decided against owner and in favour of insurer. (Para 13) .....

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