The differentiation in two situations can be marked for the reason that in the former case of non-existence or non-holding of the driving license there still is a subsisting contract of insurance covering the risk of third party but in the other there is no contract covering the risk as no premium has been charged or paid for person not covered under the categories defined under section 147 of the Act or by a special contract.
32. Thus, the contention so raised merits rejection for the reason; firstly that there is no provision in the Act which allows the insurer to pay in the first instance and recover later from the insured where the claim relates to gratuitous passenger in a Goods Carriage Vehicle and secondly in view of the law settled in New India Insurance Company Ltd. Vs. Asha Rani, MANU/SC/1105/2002 : 2002:INSC:513 : 2003 ACJ (1), National Insurance Co. Vs. Baljeet Kaur, MANU/SC/0009/2004 : 2004:INSC:19 : 2004 ACJ 428. Both these judgments by three judges' benches expounded the law with respect to liability of insurer to indemnify the insured in respect of claims arising out of death or bodily injury to a gratuitous passenger in a Goods carriage Vehicle and held in favour of insurer. Hon'ble Supreme Court in National Insurance Company Ltd. Vs. Parvathneni in MANU/SC/1418/2013 : (2018) 9 SCC 657 has kept the question of law open on the issue whether the Supreme Court in exercise of powers under Article 142 of the Constitution can direct the insurer to pay and recover, where the liability otherwise does not arise in case of gratuitous passenger. This court while expressing above view has drawn support from judgment passed by a Division Bench of High Court of Judicature at Madras in Bharti AXA General Insurance Co. Ltd. Vs. Aandi reported in MANU/TN/6503/2018 : 2019 ACJ 1975.
33. In view of above discussion, FAO No. 448 of 2018 is allowed. It is held that the insurer is not liable to indemnify the insured. The owner Amba Dutt is held liable to satisfy the award. The quantum of award is also modified to the extent as held above.
IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
FAO No. 448 of 2018 and FAO No. 34 of 2019
Decided On: 30.04.2025
The Oriental Insurance Company Ltd. Vs. Sheru and Ors.
Author: Satyen Vaidya, J.
Citation: 2025:HHC:11512,MANU/HP/0601/2025.
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