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CDJ 2026 MHC 5955
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| Court : High Court of Judicature at Madras |
| Case No : Civil Miscellaneous Appeal No. 2403 of 2026 & C.M.P. No. 18449 of 2026 |
| Judges: THE HONOURABLE MR. JUSTICE N. ANAND VENKATESH |
| Parties : M/s. The United India Insurance Company Limited, Chennai Versus G. Vignesh & Another |
| Appearing Advocates : For the Appellant: J. Michael Visuvasam, Advocate. For the Respondents: R1, S.R. Suja, R2, No appearance. |
| Date of Judgment : 03-08-2026 |
| Head Note :- |
Motor Vehicles Act, 1988 - Section 173 -
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| Summary :- |
1. Statutes / Acts / Rules / Orders / Regulations, and Sections Mentioned:
- Section 173 of the Motor Vehicles Act, 1988
- Motor Vehicles Act, 1988
- C.M.A.No.2064 of 2026
2. Catch Words:
- insurance liability
- driving licence
- pay and recover
- compensation
- civil miscellaneous appeal
3. Summary:
- The appellant insurance company filed a civil miscellaneous appeal under Section 173 of the Motor Vehicles Act, 1988 against the award of Rs. 3,17,908 passed by the Motor Accidents Claims Tribunal.
- The claimant suffered serious injuries in a road accident on 23 December 2021 involving a two‑wheeler and a car owned by the second respondent.
- The insurer contended that the driver did not possess a valid licence at the time of the accident, relying on documents showing the licence expired on 22 August 2016 and was renewed only on 24 December 2021.
- The Tribunal had held that the driver had a valid licence and awarded compensation to the claimant.
- The Court examined the licence documents, concluded that no valid licence existed on the accident date, and applied the “pay and recover” principle, holding the insurer liable.
- While confirming the quantum of compensation as reasonable, the Court directed the insurer to deposit the awarded amount with interest and allowed the claimant to withdraw it, thereby dismissing the appeal.
4. Conclusion:
Appeal Dismissed |
| Judgment :- |
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(Prayer: Civil Miscellaneous Appeal filed under Section 173 of the Motor Vehicles Act, 1988, against the award dated 17.02.2025, passed in M.C.O.P.No.355 of 2022 on the file of Motor Accidents Claims Tribunal, II Special Judge, Court of Small Causes, Chennai.)
1. This appeal has been filed by appellant insurance company against the award dated 17.02.2025, passed in M.C.O.P.No.355 of 2022 on the file of Motor Accidents Claims Tribunal, II Special Judge, Court of Small Causes, Chennai.
2. The first respondent is the claimant. The case of the claimant is that on 23.12.2021, at about 9 a.m., while the claimant was riding a two wheeler at ECR road near Poonjeri, the offending vehicle, a car, belonging to the second respondent herein, was driven in a rash and negligent manner and dashed against the two wheeler as a result of which the claimant suffered fracture of right femur and underwent ORIF with IMIL nailing and fracture of right medial malleolus and underwent cancellous screws. A First Information Report came to be registered in Crime No.7 of 2022 against the driver of the offending vehicle. It is under these circumstances, the claim petition came to be filed before the Tribunal seeking compensation.
3. The appellant, who was the second respondent before the Tribunal, filed a counter stating that the accident had taken place only due to the negligence of the claimant and that as on the date of accident, the second respondent herein did not possess a valid driving license and therefore, the insurance company is not liable to pay the compensation.
4. The second respondent herein, who was the owner of the vehicle, did not contest the case and was set ex parte.
5. The Tribunal, on considering the facts and circumstances of the case and on appreciation of oral and documentary evidence, came to a conclusion that the accident had taken place due to the rash and negligent driving on the part of the driver of the offending vehicle. Having rendered the above finding, the Tribunal came to a conclusion that there was a valid driving license for the driver of the offending vehicle and therefore, the insurance company alone is liable to pay the compensation. The Tribunal thereafter proceeded to determine the compensation amount in the following manner:
Sl. No.
| Compensation awarded under the head
| Amount (in Rs.)
| 1.
| Medical expenses and medical bills
| 1,67,908/-
| 2.
| Transport expenses
| 10,000/-
| 3.
| Additional nutrition
| 10,000/-
| 4.
| Attender charges
| 10,000/-
| 5.
| Disability
| 60,000/-
| 6.
| Loss of income
| 45,000/-
| 7.
| Pain and sufferings
| 15,000/-
| | Total
| 3,17,908/-
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The above compensation was directed to be paid along with interest at 7.5% p.a. Aggrieved by the same, the present appeal has been filed.
6. Heard learned counsel for appellant and learned counsel for first respondent. Since the second respondent remained ex parte before the Tribunal, notice to second respondent is dispensed with. This Court also considered the materials available on record and carefully went through the award passed by the Tribunal.
7. The main ground raised on the side of appellant is that the second respondent herein was not holding a valid driving license as on the date of the accident. To substantiate the same, learned counsel for appellants brought to the notice of this Court Ex.P14 and Ex.R2 and submitted that the driving license had expired on 22.08.2016 and it came to be renewed only on 24.12.2021 and the accident had taken place on 23.12.2021 on which date there was no valid driving license.
8. On carefully going through Ex.P14 and Ex.R2, it is seen that the driving license had expired on 22.08.2016 and it came to be renewed only on 24.12.2021. Therefore, as on the date of accident, i.e., 23.12.2021, there was no valid driving license for the driver of the offending vehicle. Under such circumstances, the Tribunal ought to have applied the principle of pay and recover. This is in view of the fact that the claimant in this case is a third party. To buttress the above finding, this Court relies upon the judgment of the Apex Court in Ram Babu Tiwari v. United India Insurance Co. Ltd. & Ors. [2008 (2) TNMAC 347], wherein it had been categorically held that if there is no valid driving license as on the date of accident, the insurer will not be liable to indemnify the insured.
9. Insofar as the quantum of compensation fixed by the Tribunal is concerned, the same is found to be just and reasonable and the same is hereby confirmed.
10. In the light of the above discussion, it is made clear that the appellant insurance company will pay the compensation to the claimant and it can be recovered from the second respondent herein. Accordingly, the appellant insurance company is directed to deposit the compensation of Rs.3,17,908/- awarded by the Tribunal, less the amount already deposited, together with interest at 7.5% p.a. from the date of claim petition till the date of deposit within a period of four (4) weeks from the date of receipt of this judgment. On such deposit, the claimant is entitled to withdraw the same on due application. The guidelines issued by the Division Bench of this Court in C.M.A.No.2064 of 2026, dated 08.07.2026 shall be strictly complied with respect to disbursement of compensation amount to the claimant.
Accordingly, this civil miscellaneous appeal is disposed of. No costs. Consequently, connected miscellaneous petition is closed.
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