The Oriental Insurance Company Ltd. and Anr v. Permanent Lok Adalat and Anr

o o 2023:PHHC:157607o INoTHEoPUNJABoANDoHARYANAoHIGHoCOURToAToo CHANDIGARHo o JudgmentoReservedoon:o23.11.2023o JudgmentoPronouncedoon:o05.12.2023o 251-1oo o o o o o ooo oooooooooooCWP-16427-2022o THEoORIENTALoINSURANCEoCOMPANYoLTD.oANDoANR.o ...oPetitionerso VERSUSo PERMANENToLOKoADALAToANDoANOTHERo ...oRespondentso AoNoDo 251-2oo o o o o o ooo oooooooooooCWP-25127-2022o VARUNoBHASINo ...oPetitionero VERSUSo CHAIRMANoPERMANENToLOKoADALAT,oCHANDIGARHo ANDoOTHERSo ...oRespondentso CORAM:o HON'BLEoMR.oJUSTICEoVINODoS.oBHARDWAJ.o o Present:o Mr.oArjunoKundra,oAdvocateo o o forotheopetitionersoCWP-16427-2022o&o o o fororespondentsoNo.2oando3oinoCWP-25127-2022.oo o o o Mr.oJosephoK.oMashi,oAdvocateoando o o Ms.oNilakshioJoseph,oAdvocateo o o forotheopetitioneroinoCWP-25127-2022oando o o fororespondentoNo.2oinoCWP-16427-2022.o ****o VINODoS.oBHARDWAJ,oJ.o o o Bothotheoaboveomentionedowritopetitionsoareobeingodecidedobyoao commonojudgmentoasotheyoariseooutoofosameoAwardodatedo26.05.2022opassedo byoPermanentoLokoAdalato(PublicoUtilityoServices),oChandigarh.ooo CWP-16427-2022o -2-2023:PHHC:157607 o o Forotheofacilityooforeference,otheofactsoareobeingoextractedofromo CWP-16427-2022otitledoaso"OrientaloInsuranceoCompanyoLtd.oandoanothero VersusoPermanentoLokoAdalatoandoanother".o o o Theo respondent-Applicant-o Varuno Bhasino (petitionero ino connectedoCWP-25127-2022)ofiledoanoapplicationounderoSectiono22-Coofotheo LegaloServicesoAuthoritiesoAct,o1987obeforeoPermanentoLokoAdalato(Publico Utilityo Services),o Chandigarho foro seekingo directionso too theo petitioner-InsuranceoCompanyotoomakeopaymentoofooRs.3,00,000/-otowardsotheosumo assuredoforotheocaroalongwithointeresto@o18%operoannumofromotheodateoofo losso ando alongwitho othero chargeso includingo compensationo towardso harassmento ando mentalo agonyo aso wello aso litigationo charges.o Ito hado beeno averredothatotheorespondent-ApplicantopurchasedoMarutioDZireocarobearingo Registrationo No.CH-01-BN-4786,o Modelo 2013.o Theo saido caro waso insuredo withotheopetitioner-InsuranceoCompanyovideopolicyoNo.231291/31/2018/759o validofromo20.11.2018otoo19.11.2019.oOneoRevantoKumarosonoofoSurendero SinghoresidentoofoJambal,oDistrictoKangra,oHimachaloPradeshowasoemployedo aso drivero byo theo respondent-Applicanto ando heo possessedo valido Drivingo LicenceoNo.DL-1320160204220odatedo19.01.2016ovalidouptoo18.01.2026oforo MotorcycleoandoLTV-NToissuedobyotheoLicensingoAuthorityoEZ-II,oSurajmalo Vihar,oDelhi.oTheosaidodriverowasosentotooDelhioforopersonaloworkoofotheo respondent-Applicant.oHeostartedofromoDelhioono25.06.2019oatoabouto06.00o p.m.oandowasoaccompaniedobyohisobrotheroChamanoLal.oWhenotheyoreachedo nearovillageoKambopurao(Karnal)oatoabouto12.15oa.m.,otheosaidocarohitotheo backoofoaotrolleyotowedotooaotractorobearingoRegistrationoNo.HR-05-AN-4164o whicho waso parkedo ino theo middleo ofo theo road,o withouto givingo propero CWP-16427-2022o -3-2023:PHHC:157607 indicators.oResultantly,otheocarowasobadlyodamagedoinotheosaidoaccidentowhileo theodriveronamelyoRevantoKumarosufferedoseriousoinjuriesoandodiedoatotheo spot.oAnoFIRoNo.223odatedo26.06.2019ounderoSectionso283,o337oando304-Ao ofoIPCowasoregisteredoatoPoliceoStationoMadhuban,oDistrictoKarnaloagainsto theodriveroofotheooffendingotractor-trolley.oTheodamagedocarowasothereafter,o broughtotootheoChadigarhoatoM/soSirsaoMotoroGarage,oSectoro48-C,oMotoro Market,o Chandigarho whereo estimateo ofo losso waso prepared.o Thereafter,o ao surveyoro waso appointedo too assesso theo losso ando too submito hiso report.o Theo respondent-Applicanto claimso too haveo dulyo associatedo witho theo investigator/surveyoroandoextendedoallocooperation.oDespiteosupplyingotheo requisiteo informationo aso soughto foro byo theo surveyor,o theo claimo waso noto released.oResultantly,opursuantowheretootheoapplicationowasofiledobeforeotheo PermanentoLokoAdalat.oo o o Upono notice,o theo petitioner-Insuranceo Companyo enteredo appearanceobeforeotheoPermanentoLokoAdalatoandofiledoitsowrittenoresponseo pointingooutoaoviolationoofotheotermsoandoconditionsoofotheoInsuranceoPolicyo andowithospecificoreferenceotooClauseo"Limitationoasotoouse".oTheovehicleoino questionowasoregisteredoinotheonameooforespondent-Applicant-oVarunoBhasino asoaoprivateocaroandotheosameowasoinsuredounderotheoprivateocaropackageo policyoforotheoabovesaidoperiod.oTheoInsuranceoPolicyoclearlyomentionsothato theo caroiso toobeousedo forotheo purposesoothero thanotheo "hireo andoreward",o however,otheoinsuredocarowasobeingousedoforo"hireoandoreward".oTheosaido aspectoisosupportedofromotheocontentsoofotheoFIRoNo.223odatedo26.06.2019o registeredoatoPoliceoStationoMadhuban,oDistrictoKarnalolodgedobyoChamano Lal,o brothero ofo deceasedo Revanto Kumar.o Aso pero theo policeo investigationo CWP-16427-2022o -4-2023:PHHC:157607 reporto ando theo statemento ofo theo othero co-passengero namelyo Yasho Goel,o travellingoinotheocar,orecordedounderoSectiono161oofotheoCr.P.C.,oheoaffirmedo thatotheoaboveosaidocarowasobeingousedoasoaotaxioforohireoandorewardopurposeo ono25.06.2019oforogoingofromoDelhiotooPanchkulaoforoaosumoofoRs.2,200/-.o TheosaidopassengerohadoalsoosustainedoinjuriesoandowasoadmittedotooKalpanao ChawlaoMedicaloCollege,oKarnal,owherefromoheowasoreferredotooChandigarho Hospital,o Sectoro 12o ando theno too Maxo Hospital,o Mohali.o Theo petitioner-Insuranceo Companyo alsoo claimedo too haveo writteno variouso letterso datedo

06.05.2020oando10.07.2020otootheorespondent-applicantotooclarifyotheoaboveo discrepanciesoarisingoinotheoclaim,ohowever,otheorespondent-applicantochoseo noto too respondo too theo same.o Consequently,o theo claimo ofo theo respondent-Applicanto waso repudiated.o Ito waso alsoo submittedo thato theo respondent-ApplicantohadoadmittedothatoRevantoKumarowasoaopaidodriveroandothatohiso mobileonumberoiso98760-82344.oTheosaidomobileonumberoisoalsooavailableoono theo interneto foro theo bookingo ofo theo taxio services.o Botho theseo factso stando establishedo fromo theo copyo ofo theo Motoro Claimo Formo datedo 08.07.2019o submittedobyotheorespondent-ApplicantoandoappendedoasoAnnexureoR-7,ocopyo ofotheobookingotaxioserviceoappendedoasoAnnexureoR-8oasowelloasotheocopyoofo theostatementoofotheorespondent-ApplicantoappendedoasoAnnexureoR-9oando copyo ofo theo statemento ofo Chamano Lalo giveno too theo policeo appendedo aso AnnexureoR-10owithotheoreply.oTheoclaimowasothusorepudiatedoafterograntingo sufficiento opportunityo too theo claimanto ando failingo too findo ao satisfactoryo response.oTheofactsoestablishedoareothatotheovehicleoinoquestionowasobeingo usedo aso ao Taxio despiteo havingo beeno registeredo aso ao privateo vehicleo ando insuredo undero theo privateo caro packageo policy.o Theo numbero plateo ofo theo CWP-16427-2022o -5-2023:PHHC:157607 insuredovehicleowasoalsooreflectingoaoyellowonumberoplate,owhichoisousedobyo theovehiclesobeingousedoasotaxiesoandonotoasoprivateovehicle.oo o o Uponoconsiderationoofotheorespectiveosubmissionoadvancedobyo theoparties,otheoapplicationosubmittedobyotheorespondent-Applicantowasopartlyo allowedoandopetitioner-InsuranceoCompanyowasoheldoliableotoopayo50%oofo theoclaimoononon-standardobasisoandocompensationoofoRs.5,000/-oforomentalo andophysicaloagonyoasowelloasoharassmentowasoalsooawardedoalongwithoano amountoofoRs.5,000/-otowardsolitigationoexpenses.oo o o Aggrievedothereof,otheopresentopetitionsohaveobeenofiled.oWhileo CWP-16427-2022o haso beeno filedo byo theo insuranceo companyo againsto theo claimoapplicationobeingopartlyoallowedoandotheoinsuranceocompanyohavingo beenoheldoliableotoopayo50%oofotheoclaim;otheorespondent-Applicantopreferredo CWP-25127-2022oclaimingothatotheoentireoclaimoamountooughtotoohaveobeeno releasedotoohimoandothatotheoorderopassedotheoPermanentoLokoAdalato(Publico UtilityoServices),oChandigarhopartlyoallowingotheoapplicationowasowrongoando erroneous.oo o o Theocounseloforotheopetitioner-InsuranceoCompanyohasoreferredo tootheopolicyodocumentoasowelloasotheocoveronote,owhereinotheoinsuranceohado beeno issuedo undero theo privateo caro packageo policyo Zone-B,o aso pero which,o underotheoheado"limitationsoasotoouse",otheofollowingohasobeenoprovidedofor:o o"Limitationsoasotoouse:o

1.o Theo Policyo coverso useo ofo theo vehicleo foro anyo purposeo otherothanoa)oHireooroReward,ob)oCarriageoofogoodso(otherothano sampleso oro personalo luggageo c)o Organizedo racingo d)o Paceo makingo e)o Speedo testingo f)o Reliabilityo Trialso g)o useo ino connectionowithoMotoroTrade.o o CWP-16427-2022o -6-2023:PHHC:157607 Driver:o Anyo persono includingo theo insured.o Providedo thato ao personodrivingoholdsoanoeffectiveodrivingolicenceoatotheotimeoofo theoaccidentoandoisonotodisqualifiedofromoholdingooroobtainingo sucho ao license.o Providedo alsoo thato theo persono holdingo ano effectiveoLearner'solicenseomayoalsoodriveotheovehicleoandothato suchoaopersonosatisfiesotheorequirementsoofoRuleo3oofotheoCentralo MotoroVehiclesoRules,o1989."o (emphasisosupplied)o o o o Referenceo waso thereaftero madeo too theo FIRo No.223o datedo

26.06.2019oregisteredoatoPoliceoStationoMadhuban,oDistrictoKarnaloonotheo statementoofoChamanoLalosonoofoSurenderoKumar,owhoohadomentionedothato onotheodateoofoaccident,oheoandohisobrothero(deceasedoRevantoKumar)owereo travellingowithoanothero"passenger"ofromoDelhiotooChandigarhoinotheosaido car.o Ito waso alsoo averredo byo himo ino theo saido FIRo thato heo alongwitho saido "passenger"o hado sustainedo injurieso ino theo accident.o Statemento ofo theo saido "passenger"onamelyoYashoGoelosonoofoBaldevowasoalsoorecordedoandotheo sameoisoattachedoasoAnnexureoP-3.oTheorelevantoextractoofotheosameoisoaso under:o o"StatedothatoIoamoaoresidentoofoaboveosaidoaddressoandodootheo businesso ofo supplyo ofo medicineo too Govt.o ofo Haryana.o Ono

25.06.2019oinotheoevening,oIohadohiredoaocaroforogoingofromo DelhiotooPanchkulaobearingoNo.CH-01BN-4786oMarkoSwifto DezireoforoaosumoofoRs.2200/-.oTheosaidocarowasobeingodriveno byo persono namelyo Revanto Kumaro ando Io waso sittingo ono backo seat.........."o (emphasisosupplied)o o o o HeoalsooreferredotootheoMotoroClaimoFormosubmittedobyotheo respondent-Applicant-oVarunoBhasin,owhereinoheoadmittedothatoMr.oRevanto CWP-16427-2022o -7-2023:PHHC:157607 Kumarowasoaopaidodriveroandohisomobileonumberowasoalsoomentionedoonotheo formoaso9876082334.oReferenceowasoalsoomadeotootheoOnlineoCaboServiceso underotheonameoandostyleoofo"KumaroCaboServices"owhereinotheoabovesaido mobileonumberoisouploadedoasoaocontactonumberoforoprovidingocaboservicesoino India.oHeoalsooreferredotootheostatementooforespondent-Applicant,owhereino respondent-Applicanto alsoo acknowledgeso thato oneo othero persono waso alsoo travellingo alongwitho theo deceasedo Revanto Kumaro ato theo timeo wheno theo vehicleo meto witho ano accident.o Referenceo waso alsoo madeo too theo communicationo sento byo petitioner-Insuranceo Companyo too theo respondent-Applicantowhereinotheyohaveosoughtoclarificationothatoasoperotheoevidenceo available,otheovehicleowasobeingousedoasoaotaxioandothatotheophotographsoofo theodamagedovehicleoalsooshowedothatotheonumberoplateowasoyellowoinocolouro evenothoughotheovehicleoinoquestionohasobeenoclaimedotoobeousedoasoaoprivateo vehicle.o Heo waso alsoo confrontedo witho theo statemento ofo Yasho Goelo –o theo injuredopassenger,owhoowasoundisputedlyotravellingoinotheovehicleoinoquestiono atotheotimeoofoaccident,otootheoeffectothatoheohadobookedotheovehicleoonohire.oIto wasoarguedothatotheostatementoandotheodocumentsohaveonotobeenodisputedooro deniedobyotheorespondent-Applicantoinotheowrittenostatementofiledobyohimoando thatotheo totalityo ofo theo circumstancesoclearlyo establisho thatotheo vehicleoino questionowasobeingousedoinoviolationoofotheoInsuranceoPolicyoandoforo"hireo ando reward."o Consequently,o thereo waso ao breacho ofo essentialo termso ando conditionsoofotheoInsuranceoPolicy.oTheoviolationoofotheoessentialotermsoando conditionsoofotheoInsuranceoPolicyodisentitlesotheorespondent-Applicantofromo claimingotheobenefitsounderotheoInsuranceoPolicy.o CWP-16427-2022o -8-2023:PHHC:157607 o o HeohasoalsoomadeoaoreferenceotootheojudgmentoofotheoHon'bleo SupremeoCourtoinotheomatteroofoNationaloInsuranceoCo.oLtd.oVs.oMeenao AggarwalopassedoinoCiviloAppealoNo.396oofo1999oodecidedoono23.01.2009.o Theorelevantoextractoofotheosameoreadsothus:oo "3.oo Backgroundofactsoinoaonutshelloareoasofollows:oo oRespondentowasotheoowneroofoaovehicle-oaoMarutiovano whicho waso theo subjecto mattero ofo insuranceo witho theo presento appellanto foro ao periodo fromo 27.1.2003o too

26.1.2004.oTheoVehicleoinoquestionometowithoanoaccidento ono12.6.2003oandowasobadlyodamaged.oTheoestimateoofo theocostooforepairowasopreparedobyoAutomobilesoSatyaoofo Bilaspur.oAccordingotoohimotheoestimatedoexpenditureoono totalorepairoofotheovehicleowasoRs.2,00,000/-.oIntimationo ofotheosameowasogivenobyotheocomplainantotootheopresento appellantoandoclaimowasomade.oTheosameowasorejectedoono theogroundothatotheodriveroofotheovehicleodidonotopossessoao validodrivingolicenceoandotheovehicleowhichowasoaoprivateo vehicleowasoinsuredoforopersonalouse,obutowasobeingousedo asoaotaxioforocarryingomarriageoparties.oAomarriageopartyo wasobeingotransportedoinotheovehicleoafterochargingorento ofoRs.2100/-owhenotheoaccidentooccurred.oTheodriverodido notopossessoaovalidolicenceoand,otherefore,otheovehicleowaso beingopliedoagainstotheotermsoofotheoinsuranceopolicy.oTheo Districto Consumero Disputeso Redressalo Forumo Sarguja,o AmbikapuroChhattisgarh,orejectedotheoclaimopetition.oAno appealowasopreferredobeforeotheoStateoConsumeroDisputeo Redressalo Commission,o Rajpuro (ino shorto theo `Stateo Commission').o Byo ordero datedo 17.10.2005,o theo appealo waso allowed.o Ito waso heldo thato ito wouldo beo propero too declareo theo claimo ofo complainanto aso "Non-standard"o consequentotootheoviolationoandobreach.oTherefore,otheo presento appellanto waso directedo toopayo Rs.90,000/-o i.e.o CWP-16427-2022o -9-2023:PHHC:157607 75%o ofo Rs.1,20,000/-o i.e.o theo amounto assessedo byo theo surveyoro ofo theo insuranceo companyo alongo witho 9%o interest.oTheoonlyoreasonogivenobyotheoStateoCommissiono wasothatoevenoifotheovehicleowasobeingousedoasoaotaxi,o thereo waso noo fundamentalo breacho ofo theo termso ofo theo policy.oAorevisionopetitionowasofiledobeforeotheoNationalo Commissiono whicho cameo too beo dismissedo byo theo impugnedo order.o Theo Nationalo Commissiono heldo thato evenothoughotheovehicleowasobeingousedoasoaocommercialo vehicleo ando theo drivero dido noto haveo ao valido drivingo licence,othereowasonoofundamentalobreachoofotheotermsoofo theopolicy.o Accordingotootheoappellantotheoinsuredovehicleowasobeingo usedo aso ao commercialo vehicle,o ando theo drivero ofo theo vehicleoisorequiredotooholdoanoappropriateolicence.oIfotheo driverowhoowasodrivingotheovehicleoatoaorelevantopointoofo timeodidonotopossessoanyolicenceotoodriveoaocommercialo vehicle,othereoisoaobreachoofotheoconditionsoofotheopolicyo andosuchopleaowasoavailableotoobeoraisedoasoaodefence.o XXXo o XXXo o XXXo

9.oo Weo findo thato theo Stateo Commissiono ando theo Nationalo Commissiono haveo noto practicallyo indicatedo anyo reasono foro comingotootheoconclusionothatothereowasonoofundamentalobreacho ofotheotermsoofotheopolicy.oBothotheoStateoCommissionoandotheo Nationalo Commissiono observedo thato theo vehicleo waso beingo drivenobyoaopersonowhoodidonotohaveoaovalidodrivingolicence.oIno additionotoothatotheovehicleowhichowasoinsuredoforopersonalouseo wasousedoforocommercialopurposes.o

10.oo Lookedo ato fromo anyo angleo theoimpugnedo ordersoofo theo Stateo Commissiono ando theo Nationalo Commissiono areo unsustainable,o deserveo too beo seto aside,o whicho weo direct.o Noo costs."o (emphasisosupplied)o o CWP-16427-2022o -10-2023:PHHC:157607 o o ReferenceohasoalsoobeenomadeotooaoDivisionoBenchoJudgmentoofo Hon'bleoHimachaloPradeshoHighoCourtoinoFAOo(MVA)oNo.69oofo1992otitledo asoNewoIndiaoAssuranceoCo.oVersusoAniloKumaroandoothersodecidedoono

10.08.1999.ooTheorelevantoextractothereoforeadsothus:o "20.oo Aftero analysingo theo factualo ando legalo positiono foro theo purposeoofodecidingotheopresentocase,otheovehicleoisonotocoveredo byo ao permito too plyo foro hireo oro rewardo ando ito waso ao privateo vehicleonotoforocarryingoanyopassengeroforohireoororeward.oItoiso theoowneroofotheovehicleoherselfowhoogaveotheovehicle/oallowedo theovehicleotoobeousedoasotaxiotoocarryopassengersoforohireooro rewardo and,o therefore,o ito cannoto beo saido thato sheo haso noto committedobreachoofoconditionoofotheopolicyowhichoisotheosameo aso theo oneo noto permittedo byo theo statutoryo provisions.o Theo appellantocompanyohasoestablishedothatotheobreachowasoonotheo partoofotheoinsuredoandoweofindothatoitowasotheoinsuredowhoowaso guiltyoofoviolatingotheotermsooroinfringementoofotheocontractobyo handingooveroaoprivateovehicleoforousingoitoasotaxioforohireooro rewardowhichoisoaofundamentalobreachoofospecifiedoconditionoofo theopolicyoandotheoexclusionoclauseounderoSectiono96o(2)o(b)o(i)o

(a)o shallo expresslyo applyo ino theo caseo ino hando denyingo theo respondento ownero ofo theo vehicleo indemnificationo byo theo appellantocompany."o o (emphasisosupplied)o o o o FurtheroreferenceohasobeenomadeotootheojudgmentoofothisoCourto inotheomatteroofoRajenderoVersusoKamlaoandoothersobearingoNo.FAO-2385o ofo 1999o decidedo ono 12.03.2014.o Theo relevanto extracto ofo theo sameo iso reproducedohereinafterobelow:o "5.oo Theo learnedo Tribunalo framedo issueo No.1o "Whethero Balwanodiedoasoaoresultooforashoandonegligentoofodriving?oOPP.o RameshoandoDilbag,oappearedoasoPW3oandoPW4orespectively,o CWP-16427-2022o -11-2023:PHHC:157607 wereotravellingoasopassengersoinotheooffendingojeep.oTheyohaveo clearlyo statedo thato theo jeepo waso beingo driveno ino ao rasho ando negligentomanneroasotheodriverocouldonotocontrolotheojeepodueotoo highospeedoandorashness,oitoturnedoturtle.oTheolearnedoTribunalo decidedo thiso issueo ino favouro ofo theo claimanto ando againsto theo drivero ando owner.o Furthero ito haso specificallyo comeo ino theo statemento ofo PW2o Harchand,o whoo waso travelingo ino theo offendingojeepoatotheotimeoofoaccident,othatotheojeepowasobookedo byoRajmal,owhoohadogoneotooPaniharioforobookingotheojeepoforo marriageoparty.oTheosameowasocorroboratedobyoPW3oRamesho andoPW4oDilbaghoSingh.oInoviewoofotheosame,oitoisoprovedoono recordothatotheooffendingovehicleoi.e.ojeepowasobeingousedoforo hireoandorewardopurpose."o (emphasisosupplied)o o o o FurtherorelianceohasobeenomadeoonotheojudgmentoofoChhattisgarho Higho Courto ino theo mattero ofo Ravio Kumaro s/oo Jivrakhano Prasado Guptao VersusoAshutoshosonoofoOmoPrakashoTiwarioandoothers;oM.A.o(C)oNo.74oofo 2013odecidedoono15.02.2019.o "11.o Fromo consideringo theo aboveo evidenceo ando materialo availableoonorecord,oitoisoevidentothatotheooffendingovehicleowaso takenoonohireoandotheoclaimantoalongowithootheropersonsowento foroaotour.oTheooffendingovehicleothoughoregisteredoasoprivateo vehicle,obutowasobeingousedoasoao'Taxi',owhichoisoviolationoofotheo conditionso ofo theo insuranceo policy,o therefore,o theo Insuranceo Companyocannotobeoheldoliableoforopaymentoofoanyoamountoofo compensationo becauseo noo premiumo haso beeno chargedo foro carryingopassengersoinoaovehicle.oInotheocaseoinohand,othereoiso noo privityo ofo contracto betweeno insurero ando insuredo too compensateo theo injury/deatho ofo theo passengerso travellingo ono CWP-16427-2022o -12-2023:PHHC:157607

12.oo Inoviewoofotheoabove,oinotheoopinionoofothisoCourt,otheo learnedo Claimso Tribunalo haso noto committedo anyo erroro ino exoneratingotheoInsuranceoCompanyofromoitsoliabilityotoopayotheo compensationoandohasorightlyofastenedotheoliabilityotoopayotheo compensationoonotheoowneroofotheooffendingovehicle.o (emphasisosupplied)o o o Noo othero argumento haso beeno raisedo byo theo counselo foro theo petitioner-InsuranceoCompany.o o o Learnedo counselo foro theo respondent,o ono theo othero hand,o haso arguedothatotheoAwardoinoquestionowasoliableotoobeomodifiedoandothatotheo respondent-Applicantoisoentitledotooreimbursementoforotheototal/completeolosso sustainedobyohim.oItoisofurtheroarguedobyotheolearnedocounselothatodriveroofo theo vehicleo waso holdingo ao valido drivingo licenceo ando thato theo insuranceo companyocannotodenyoitsoliabilityomerelyobecauseosomeootheropersonowaso alsoosittingoinotheovehicle.oItoisocontendedothatothereoisonooevidenceoavailableo onorecordoonotheobasisowhereof,oitocanobeoassumedothatotheovehicleowasobeingo operatedoasoaotaxi.oFurther,omerelyobecauseotheorespondent-Applicantoisoalsoo carryingoonobusinessoasoaotaxiooperator,oitocannotobeoheldosufficientotooinfero thatotheovehicleoinoquestionowasoalsooactuallyobeingousedoasoaotaxioatotheotimeo whenotheoaccidentohadotakenoplace.oHeofurtheroarguesothatoifotheodriveroofotheo vehicleohasopickedouposomeopassengerocontraryotootheoinstructionsoissuedobyo theopetitioner-InsuranceoCompany,otheobenefitoofoInsuranceoPolicyocannotobeo denied.oHeoplacesorelianceoonotheojudgmentoofoHon'bleoSupremeoCourtoinotheo omatteroofoJitendraoKumaroVersusoOrientaloInsuranceoCo.oLtd.oandoanother reportedo aso (2003)o 6o SCCo 420.o Theo relevanto extracto ofo theo sameo iso reproducedohereinafterobelow:o CWP-16427-2022o -13-2023:PHHC:157607 "7.o Weohaveoheardolearnedocounseloforotheorespondentsowhoo hasosupportedotheoordersoofotheoStateoCommissionoasowelloaso thatoofotheoNationaloCommission.oSoofaroasotheofactsoofothisocaseo areoconcerned,othereoisohardlyoanyodispute,otherefore,oweocano safelyo proceedoonotheo basisothato theo vehicleo inoquestiono waso damagedodueotooaomechanicalofaultoandonoofaultoofotheodriver.o Forotheopurposeoofoargument,oweomayoalsooproceedoonotheobasiso thatotheodriveroofotheocarodidonotohaveoaovalidodrivingolicence.o Questionothenois:ocanotheoInsuranceoCompanyorepudiateoaoclaimo madeobyotheoowneroofotheovehicleowhichoisodulyoinsuredowithotheo Company,osolelyoonotheogroundotheodriveroofotheovehicleowhoo hado nothingo too doo witho theo accidento dido noto holdo ao valido licence?oAnswerotoothisoquestion,oinoouroopinion,oshouldobeoino theonegative.oSectiono149oofotheoMotoroVehiclesoAct,o1988oono whicho relianceo waso placedo byo theo Stateo Commission,o ino ouro opinion,odoesonotocomeotootheoaidoofotheoInsuranceoCompanyoino repudiatingo ao claimo whereo drivero ofo theo vehicleo hado noto contributedo ino anyo mannero too theo accident.oSectiono 149(2)(a)(ii)oofotheoMotoroVehiclesoActoempowersotheoInsuranceo Companyotoorepudiateoaoclaimowhereinotheovehicleoinoquestiono isodamagedodueotooanoaccidentotoowhichodriveroofotheovehicleo whoodoesonotoholdoaovalidodrivingolicenceoisoresponsibleoinoanyo manner.oo

8.oo ItodoesonotoempowerotheoInsuranceoCompanyotoorepudiateo aoclaimoforodamagesowhichohasooccurredodueotooactsotoowhicho theo drivero haso not,o ino anyo manner,o contributedo i.e.o damageso incurredodueotooreasonsootherothanotheoactoofotheodriver.o

9.o Weo noticeo thato ino theo impugnedo ordero Nationalo CommissionohasoplacedorelianceoonotheojudgmentoofothisoCourto inotheocaseoofoNewoIndiaoAssuranceoCompanyo(supra)owhich,oino ouroopinion,ohasonoobearingoonothisoaspectoofotheocaseoinohand.o ThisoCourtoinotheosaidocaseoheldothatotheofakeodrivingolicenceo wheno renewedo genuinely,o doeso noto acquireo theo validityo ofo ao CWP-16427-2022o -14-2023:PHHC:157607 genuineolicence.oThereocanobeonoodisputeoonothisopropositionoofo law.oButothenotheojudgmentoofothisoCourtoinotheocaseoofoNewo IndiaoAssuranceoCompanyo(supra)odoesonotogootootheoextentoofo layingodownoaolawowhichoempowersotheoInsuranceoCompanyotoo repudiateoanyoandoeveryoclaimoofotheoinsuredo(appellant)omerelyo becauseo heo hado engagedo ao drivero whoo dido noto haveo ao valido licence.oInotheoinstantocase,oitoisotheocaseoofotheopartiesothatofireo inoquestionowhichocausedodamageotootheovehicleooccurredodueotoo mechanicalofailureoandonotodueotooanyofaultooroact,ooroomissiono ofotheodriver.oTherefore,oinoouroconsideredoopinionoInsuranceo Companyocouldonotohaveorepudiatedotheoclaimoofotheoappellant.o o o o Furtheroreferenceohasoalsoobeenomadeotootheojudgmentoofotheo Hon'bleoSupremeoCourtoinotheomatteroofoB.V.oNagarajuoVersusoM/soOrientalo Insuranceo Co.o Ltd.oHassanoreportedoaso(1996)o 4o SCCo647oTheorelevanto extractoofotheosameoisoreproducedohereinafterobelow:o "7.o ItoisoplainofromotheotermsoofotheoInsuranceoPolicyothatotheo insuredovehicleowasoentitledotoocarryo6oworkmen,oexcludingotheo driver.oIfothoseo6oworkmenowhenotravellingoinotheovehicle,oareo assumedonototoohaveoincreasedoanyoriskofromotheopointoofoviewo ofotheoInsuranceoCompanyoonooccurringoofoanoaccident,ohowo couldothoseoaddedopersonsobeosaidotoohaveocontributedotootheo causingoofoitoisotheoposer,okeepingoapartotheoloadoitowasonoto carrying.oHereoitoisonobody'socaseothatotheodriveroofotheoinsuredo vehicleo waso responsibleo foro theo accident.o Ino fact,o ito waso noto disputedo thato theo oncomingo vehicleo hado collidedo head-ono againsto theo insuredo vehicle,o whicho resultedo ino theo damage.o Merelyobyoliftingoaopersonsoorotwo,ooroevenothree,obyotheodrivero orotheocleaneroofotheovehicle,owithoutotheoknowledgeoofoowner,o cannotobeosaidotoobeosuchoaofundamentalobreachothatotheoownero should,oinoalloevents,obeodeniedoindemnification.oTheomisuseoofo theo vehicleo waso somewhato irregularo though,o buto noto soo fundamentalo ino natureo soo aso too puto ano endo too theo contract,o CWP-16427-2022o -15-2023:PHHC:157607 unlessosomeofactorsoexistedowhich,obyothemselves,ohadogoneotoo contributeotootheocausingoofotheoaccident.oInotheoinstantocase,o however,oweofindonoosuchocontributoryofactor.oInoSikand'socaseo thisoCourtopavedotheowayotowardsoreadingodownotheocontractualo Clauseobyoobservingoasofollowso:o ".......Whenotheooptionoisobetweenooptingoforoaoviewowhicho willo relieveo theo distresso ando miseryo ofo theo victimso ofo accidentsoorotheirodependantsoonotheooneohandoandotheo equallyoplausibleoviewowhichowilloreduceotheoprofitabilityo ofo theo insurero ino regardo too theo occupationalo hazardo undertakenobyohimobyowayoofobusinessoactivity,othereoiso hardlyo anyo choice.o Theo Courto cannoto buto opto foro theo formero view.o Eveno ifo oneo wereo too makeo ao strictlyo doctrinaireo approach,o theo veryo sameo conclusiono wouldo emergeoinoobeisanceotootheodoctrineoofo'readingodown'otheo exclusionoclauseoinotheolightoofotheo'mainopurpose'oofotheo provisiono soo thato theo 'exclusiono clause'o highlightedo earlier.oTheoeffortomustobeotooharmonizeotheotwooinsteado ofoallowingotheoexclusionoclauseotoosnipeosuccessfullyoato theomainopurpose.oTheotheoryowhichoneedsonoosupportoiso supportedo byo Carter'so "Breacho ofo Contract"o video paragrapho251.oTooquoteo:o Notwithstandingotheogeneraloabilityoofocontractingopartieso too agreeo too exclusiono clauseso whicho operateo too defineo obligationsothereoexistsoaorule,ousuallyoreferredotooasotheo "mainopurposeorule",owhichomayolimitotheoapplicationoofo wiseoexclusionoclausesodefiningoaopromisor'socontractualo obligations.oForoexample,oinoGlynnnov.oMargetsono&oCo.o [1893o ACo 351,o 357],o Lordo Halsbury,o L.C.o statedo :o Ito seemsotoomeothatoinoconstruingothisodocument,owhichoisoao contractoofocarriageobetweenotheoparties,ooneomustoinotheo firstoinstanceolookoatotheowholeoinstrumentoandonotoatooneo parto ofo ito only.o Lookingo ato theo wholeo instrument,o ando CWP-16427-2022o -16-2023:PHHC:157607 seeingowhatooneomustoregardo......oasoitsomainopurpose,o oneomustorejectowords,oindeedowholeoprovisions,oifotheyo areoinconsistentowithowhatooneoassumesotoobeotheomaino purposeoofotheocontract.o Althoughothisoruleoplayedoaoroleoinotheodevelopmentoofotheo doctrineoofofundamentalobreach,otheocontinuedovalidityoofo theo ruleo waso acknowledgedo wheno theo doctrineo waso rejectedo byo theo Houseo ofo Lordso inoSuisseeo Atlantiqueo Societed'oArmementoMaritimeoS.A.ov.oN.V.oRotterdamscheo Koleno Centraleo[1967o 1o ACo 361].o Accordingly,o wideo exclusiono clauseso willo beo reado downo too theo extento too whicho theyoareo inconsistento witho theo maino purpose,o oro objectoofotheocontract."o

8.o TheoNationaloCommissionowentoforotheostrictoconstructiono ofotheoexclusionoclause.oTheoreasoningothatotheoextraopassengerso beingocarriedoinotheogoodsovehicleocouldonotohaveocontributed,o inoanyomanner,otootheooccurringoofotheoaccident,owasobarelyo noticedoandorejectedosansoanyoplausibleoaccount;oevenowhenotheo claimoconfiningotheodamageotootheovehicleoonlyowasolimitedoino nature.o We,o thus,o areo ofo theo viewo thato ino accordo witho theo Skandia'socase,otheoaforesaidoexclusionotermoofotheoinsuranceo policyomustobeoreadodownosooasotooserveotheomainopurposeoofotheo policyo thato iso indemnifyo theo damageo causedo too theo vehicle,o whichoweoherebyodo.o

9.o Foro theo viewo aboveo taken,o thiso appealo iso allowed,o theo judgmento ando ordero ofo theo Nationalo Consumero Disputeso RedressaloCommission,oNewoDelhioisosetoasideoandothatoofotheo StateoCommissionoisorestoredoinoitsoentirety,obutowithoutoanyo orderoasotoocosts."o o o ReferenceohasoalsoobeenomadeotootheojudgmentoofotheoHon'bleo SupremeoCourtoinotheomatteroofoNewoIndiaoAssuranceoCo.oLtd.o&ootherso CWP-16427-2022o -17-2023:PHHC:157607 VersusoPareshoMohanlaloParmaroreportedoaso(2020)o1oR.C.R.o(Civil)o1006.o Theorelevantoextractoofotheosameoisoreproducedohereinafterobelow:o "10.o Theo judgmento ofo thiso Courto reliedo byo counselo foro theo respondentoino2019(6)oSCCo212o(BharatoWatchoCompanyothroo itso partnero Vs.o Nationalo Insuranceo Companyo Ltd.)o suprao coversotheocase,owhereinofollowingohasobeenolaidodownoinoparao 7o&o10:oo "7.o "Theo basico issueo whicho haso beeno canvassedo ono behalfo ofo theo appellanto beforeo thiso Courto iso thato theo conditionsoofoexclusionounderotheopolicyodocumentowereo notohandedooverotootheoappellantobyotheoinsureroandoinotheo absenceoofotheoappellantobeingomadeoawareoofotheotermso ofotheoexclusion,oitoisonotoopenotootheoinsurerotoorelyoupono theoexclusionaryoclauses.oHence,oitowasourgedothatotheo decisionoinoHarchandoRaiowillohaveonooapplicationosinceo thereo waso noo disputeo ino thato caseo thato theo policyo documentowasoissuedotootheoinsured.o "10.oo oHavingo heldo this,o SCDRCo alsoo cameo too theo conclusionothatotheoexclusionowouldoinoanyoeventonotobeo attracted.o Theo findingo ofo SCDRCo ino regardo too theo interpretationoofosuchoanoexclusionaryoclauseoisoevidentlyo contraryotootheolawolaidodownobyothisoCourtoinoHarchando Rai.oHowever,otheorelevanceoofothatointerpretationowouldo haveo ariseno providedo theo conditionso ofo exclusiono wereo providedotootheoinsured.oNCDRComissedotheoconcurrento findingsoofobothotheoDistrictoForumoandoSCDRCothatotheo termsoofoexclusionowereonotomadeoknownotootheoinsured.oIfo thoseoconditionsowereonotomadeoknownotootheoinsured,oaso iso theo concurrento finding,o thereo waso noo occasiono foro NCDRCo toorenderoao decisionoono theoeffectoofosucho ano exclusion."oo CWP-16427-2022o -18-2023:PHHC:157607

11.o Inoviewoofotheoaboveoweoareoofotheoopinionothatonooothero issueoneedsotoobeoconsidered.oTheoappealoofotheoappellantoiso liableotoobeodismissedoonotheoaboveoground."o o o Referenceo haso alsoo beeno madeo too theo judgmento ofo Hon'bleo SupremeoCourtoinotheomatteroofoM/soModernoInsulatorsoLtd.oVersusoTheo OrientaloInsuranceoCo.oLtd.odecidedoono22.02.2000.ooRelevantoextractoofotheo sameoisoreproducedohereinafterobelow:o "Ino viewo ofo theo aboveo settledo positiono ofo lawo weo areo ofo theo opinionothatotheoviewoexpressedobyotheoNationaloCommissionoiso notocorrect.oAsotheoaboveotermsoandoconditionsoofotheostandardo policyowhereinotheoexclusionoclauseowasoincluded,owereoneithero ao parto ofo theo contracto ofo insuranceo noro disclosedo too theo appellanto respondento cannoto claimo theo benefito ofo theo saido exclusionoclause." o o o Itowasothusoarguedothatotheobreachoinoquestionocannotobeoheldotoo beoinoviolationoofotheotermsoandoconditionsoofotheoInsuranceoPolicy.oBesides,o theoaccidentoinoquestionohadonototakenoplaceoonoaccountoofotheopassengero beingotakenoinotheosaidovehicleoandowhenotheoincidentoinoquestionoisowhollyo unrelatedotootheosame,obenefitocouldonotohaveobeenodenied.oo o o Noo othero argumento waso raisedo ono behalfo ofo theo respondent-Applicant.o o o Iohaveoheardotheolearnedocounseloforotheorespectiveopartiesoando haveogoneothroughotheodocumentsoandorecordoavailableoonocaseofileowithotheiro ableoassistance.o o o Theoundisputedofactsothatoemergeofromotheopleadingsoasowelloaso theoevidenceoareothat:o CWP-16427-2022o -19-2023:PHHC:157607

(i)k theovehicleoinoquestionowasoregisteredoasoaoprivateovehicleoando wasoinsuredounderotheoprivateocaropackageopolicyoatotheotimeo whenotheoaccidentoinoquestionotookoplace.o

(ii)k theo FIRo No.223o datedo 26.06.2019o waso registeredo ato Policeo Stationo Madhuban,o Districto Karnalo ono theo statemento ofo oneo ChamanoLal-otheobrotheroofodeceasedoRevantoKumar.oo

(iii)k ItohasoalsooremainedoundisputedoinotheosaidoFIRoasowelloasoinotheo statemento ofo Chamano Lalo ando thato ofo respondent-Applicant-oo Varuno Bhasino thato thereo waso anothero persono (passenger)o travellingoinotheovehicleoinoquestion.oWhileotheodefenceotakenobyo theorespondent-Applicantoisothatotheosaidopassengerowasonotoao passengeroforo"hireoandoreward".oItohasoremainedoundisputedo thatostatementoofotheosaidopassengeronamelyoYashoGoelohadobeeno recordedobyotheoInvestigatingoAgencyoandoheohadospecificallyo statedo thato heo hado hiredo theo aboveo saido vehicleo foro goingo too PanchkulaofromoDelhioforoaosumoofoRs.2,200/-.oTheovalidityoofo theo aforesaido statemento ando theo documentso iso noto deniedo oro disputedoinotheoresponseofiledoandotheoonlyodefenceotakenoisothato theosaidostatementoisoatobestobeoaostatementounderoSectiono161oofo theoCr.P.C.oandoisoyetotoobeoprovedoinotheoCourtoofolaw.o

(iv)k Furtherotheorespondent-Applicantohasoalsoonotodisputedotheofacto thatotheorespondent-Applicantoisoaotaxiooperatoroandothatoheowaso usingo hiso mobileo numbero aso iso availableo ono theo onlineo taxio bookingoserviceoandothatotheosaidonumberohadobeenomentionedo inotheoClaimoFormosubmittedobyotheorespondent-Applicanto CWP-16427-2022o -20-2023:PHHC:157607 o o StillofurtherotheoPermanentoLokoAdalato(PublicoUtilityoServices),o Chandigarhohasorecordedoitsofindingoasounder:oo o "Thiso Courto haso observedo theo statementso ofo botho theo partiesoandohasofoundooutothatotheocarobeingoinoquestionowaso usedoforocommercialopurposeoandotheorespondentsoareonotoliableo toopayoinsuranceoclaimoasoperotheotermsoandoconditionsoofotheo policy.oStillotheoowneroofotheocarohasosufferedolossoandodrivero withouto hiso owno mistake,o diedo ono theo spoto duringo accident,o therefore,o insuranceo companyo areo heldo entitledo too payo theo claimanto50%oofotheoclaimooonon-standardobasis."o o o o Aoperusaloofotheosameoshowsothatotheofindingorecordedobyotheo PermanentoLokoAdalato(PublicoUtilityoServices),oChandigarhoisothatotheocaroino questiono waso beingo usedo foro theo commercialo purposeso ando theo insuranceo companyo waso noto liableo too payo insuranceo claimo o aso pero theo termso ando conditionsoofotheopolicy.oNooreasonooroexplanationohasobeenoputoforthobyotheo PermanentoLokoAdalato(PublicoUtilityoServices),oChandigarhoasotooonowhato basiso theo Permanento Loko Adalato (Publico Utilityo Services),o Chandigarho deemedoitoappropriateotooawardoclaimotootheoextentoofo50%odespiteonoticingo thatothereowasoaoviolationoofotheotermsoofotheoInsuranceoPolicyoandothatoasopero theoInsuranceoPolicy,otheopetitionerocompanyowasonotoliableotoopayotheosaido claim.oThereohasoalsoobeenonoodenialoofotheospecificoavermentomadeobyotheo InsuranceoCompanyoinotheopresentocaseothatotheovehicleoinoquestionoflashedoao yellowonumberoplateowhichoisotoobeousedounderotheoMotoroVehiclesoAct,o1988o foropassengerovehicles/taxioservices.o o o Itoisoalsooevidentothatotheopolicyocoveronoteowhichohadobeeno reliedouponobyotheopetitioner-InsuranceoCompanyoforoclaimingotheobenefitoofo theoInsuranceoasoAnnexureoC-2o(AnnexureoP-1oinotheowritopetition)oclearlyo CWP-16427-2022o -21-2023:PHHC:157607 specifiedotheolimitationsoasotoouseoonotheofirstopageoitself.oBesides,otheopolicyo wasotitledoasoao'PrivateoCaroPackageoPolicy'.oHence,oitocannotobeoassumedo thatotheorespondent-Applicantowasonotoawareoofotheodifferenceobetweenoao 'privateocar'oando'theocarotoobeousedoasopassengerovehicle/taxi'.oItoisonototheo caseoofotheorespondent-Applicantothatoheointendedotoouseotheocaroasotaxioando thatotheoregistrationocertificateoofotheocaroasoaotaxiohadobeenodulyohandedoovero tootheoInsuranceoCompany.ooTheorespondent-Applicantobeingoaotaxiooperatoro certainlyoknewotheodifferenceoofotheoregistrationorequiredotoobeodone.oTheouseo ofotheovehicleoasoaotaxioisoclearlyoreflectedofromotheoyellowonumberoplateothato hasobeenoaffixedotootheovehicleoinoquestion.oItoisoalsoonotoaverredobyotheo respondent-Applicantoinotheoclaimoapplicationoasowelloasoinotheoseparateowrito petitionofiledobyohimothatotheoregistrationocertificateoofotheovehicleoreflectingo theocarotoobeousedoasoaotaxiohadonotobeenosuppliedobyohimotootheoInsuranceo Companyoandoasosuchoallomaterialoinformationohadobeenoclearlyofurnished.o Further,oitoisoalsoonotodisputedobyotheorespondent-ApplicantothatoYashoGoelo wasotheopassengerotravellingoinotheovehicleoinoquestionoatotheotimeoofotheo accidento ando heo hado sufferedo injuries.o Ino hiso statement,o recordedo undero Sectiono161oofotheoCr.P.C.,oYashoGoelostatedothatoheohadohiredotheovehicleotoo comeotooPanchkulaoforoaosumoofoRs.2200/-.oItoisoalsoonotoinodisputeothatotheo proceedingso haveo beeno initiatedo ando areo beingo pursued,o aso pero theo investigationoconductedobyotheoInvestigatingoAgency,obeforeotheocompetento Courtoofolawoagainstotheoowneroofotheotractor-trolleyowhoohadoparkedotheo vehicleoinotheomiddleoofotheoroad.oTheoaboveocontemporaneousoevidenceoando circumstanceso clearlyo suggesto thato theo respondent-Applicanto iso noto onlyo involvedoinotheovocationoofoTaxioServicesobutoalsoothatotheovehicleohadobeeno CWP-16427-2022o -22-2023:PHHC:157607 engagedobyotheothirdopersono–opassengeroforohire.oAospecificofindingoinothiso regardo waso alsoo recordedo byo theo Permanento Loko Adalato (Publico Utilityo Services),o Chandigarh.o Theo disclaimer/limitationso aso too useo ino theo policyo coveronoteoexpresslyoexcludedotheoliabilityoinotheoeventoofotheovehicleobeingo usedoforohireoandoreward.oItoisoincomprehensibleoatothisojunctureotoopresumeo thatotheorespondent-Applicanto(whooisoaoprofessionalotaxiooperator)owasonoto awareo ofo theo abovesaido limitationo especiallyo wheno theo saido limitationo iso availableoonotheoveryofirstopageoofotheoinsuranceocoveronoteoitself.oBesidesotheo sameoisonotoinoanyosmallofontooroitalicsowhichomayobeoillegible.oItoisoalsoonoto theocaseoofotheorespondent-Applicantothatotheotermsoandoconditionsoforotheo exclusionsowereonotomadeoknownotoohim,odespiteohisodisclosingotheocompleteo ando trueo facts.o Hence,o othero thano ao mereo suggestiono byo theo respondent-Applicantothatomerelyobecauseothereowasoanotheropassengeroinotheovehicleoato theotimeowhenoitometowithoanoaccident,otheosameowouldonotoestablishothatotheo vehicleowasobeingousedoforohireoandoreward,oonothingoelseoisoavailableoono recordotoosupportohisoclaim.oo o o Theoargumentsoadvancedoonobehalfoofotheorespondent-Applicanto thatoifotheodriverohasobroughtoinosomeopassengerowithoutoauthorityoandomayo beoforohireoandoreward,oheocannotobeoheldoliable,oisomisconceivedoonotheofirsto principle.oTheodriver,ousingotheovehicle,odoesosooforoandoonobehalfoofotheo owneroandoisoatobestotheoagentoforotheoowner.oAobreachoofotheotermsoando conditionso ofo theo Insuranceo Policy,o eveno byo theo driver,o holdso theo ownero vicariouslyoliableoforotheociviloliabilitiesowhichoariseooroaccrueoasoaoresultoofo anyo sucho breacho unlesso ownero establisheso expresso breacho ofo specifico instructionsotootheocontrary.oEvenootherwise,otheosaidosuggestionoalsoodoeso CWP-16427-2022o -23-2023:PHHC:157607 notoappearotoobeoconvincingothatotheorespondent-Applicantowasounawareoofo theovehicleobeingousedoasoaotaxioespeciallyowhenotheorespondent-Applicanto himselfoisoaotaxiooperatoroandotheovehicleoflashedoaoyellowonumberoplateo whichoisorequiredotoobeousedoforoTaxiesounderotheoMotoroVehiclesoAct,o1988.oo o o Theo Civilo Proceedingso areo governedo byo preponderanceo ofo probabilitieso ando theo respondent-Applicanto havingo choseno too pursueo theo summaryo proceedingso beforeo theo Permanento Loko Adalato (Publico Utilityo Services),o Chandigarho undero theo Legalo Serviceso Authoritieso Act,o 1987,o cannotoclaimothatotheotestoofoestablishingotheoclaimobeyondoreasonableodoubto foro repudiatingo theo righto ofo theo respondent-Applicant,o musto beo appliedo againstotheopetitioner-InsuranceoCompany,oespeciallyowhenotheoC.P.C.oando theoEvidenceoActoareoexemptedounderoSectiono22DoofotheoLegaloServiceso Authoritieso Act,o 1987o fromo applicationo too theo proceedingo beforeo theo PermanentoLokoAdalat.o o o Further,otheolawomandatesothatoaovehicleowhichoisoinsuredomusto beooperatedoinoaccordanceowithotheotermsoandoconditionsospecifiedoinotheo policyocoveronoteoandothatoanyobreachothereofowouldoentailoconsequenceso includingo repudiationo thereof.o Theo entitlemento ofo ao persono too claimo compensationoonoaonon-standardobasisowouldocomeotoorescueoofoaopersono onlyowhenosuchobreachoisoofoaotechnicalonatureoandoisonotoaobreachoofotheo material/essentialo termso ando conditionso ofo theo policy.o Theo entitlemento ofo settlementoofonon-standardoclaimsostipulatesothatotheobreachoofoaoconditiono shouldonotobeoattributedotootheoinsuredoorohisoagentoorothatotheobreachowasonoto committedoconsciouslyoorothatotheointentionsoofotheoinsuredowereobonafideooro CWP-16427-2022o -24-2023:PHHC:157607 evenowhereotheoaccidentohadonoonexusotootheobreach,otheoclaimomayostillobeo honoured.oo o o Theoexpressoexclusionoofotheoliability,oinotheoeventoofotheovehicleo beingousedoforoaopurposeoofohireoandoreward,oclearlyoshowsotheointentoofotheo partiesoandothatotheosaidoconditionowasoessentialoandointegralotootheodecisiono ofotheoInsuranceoCompanyotoounderwriteoaorisk.ooTheorespondent-Applicanto couldo haveo clearlyo dispelledo theo aboveo saido notiono ando establishedo hiso bonafideointentionobyoplacingoonorecordotheorelevantomaterialoincludingotheo submissionoofoRegistrationoCertificateoand/orotheoproposaloformoaboutohiso intentionotoouseotheovehicleoasoaotaxioandoalsoothatotheovehicleowasoactuallyo registeredoasoaoTaxioandowasotootheoknowledgeoofotheopetitioner-Insuranceo Company.o Foro theo reasonso besto knowno too him,o theo respondent-Applicanto choseotoowithholdotheobestoevidenceoinohisopossessionoandonototoobringotheo sameoonorecord.oFurther,otheonon-denialoofotheostatementoofotheopassengero ando brothero ofo deceased,o theo referenceo too theo photographso ino theo claimo showingoyellowonumberoplateoandotheostatementoofotheopassengeroYashoGoelo addostrengthotootheoassertionoofotheopetitioner-InsuranceoCompanyothatotheo vehicleo waso beingo usedo ino violationo ofo theo termso ando conditionso ofo theo Insuranceo Policy.o Aso sucho theo respondent-Applicanto beingo ino breacho ofo materialoandofundamentaloconditionsoofotheopolicy,otheosameocannotobeoheldo toobeoaomereonon-essentialotechnicalolapseoorothatotheosaidoeventowasobeyondo theocontroloofotheorespondent-Applicant.oTheoomissionoisothusoapparentoando seemsotoobeointentional.oTheosameowouldobeoseverelyolackingoinobonafide.o Theodutyoofogoodofaithohasobeenoheldotoobeoofoaocontinuingonatureoandonoo materialoalterationocanobeomadeotootheotermsoandoconditionsoexceptobyomutualo CWP-16427-2022o -25-2023:PHHC:157607 consent.o Theo materialityo ofo ao facto iso too beo judgedo byo theo circumstanceso existingo ato theo timeo wheno theo contracto iso concluded.o Theo principleo ofo uberrimaeofideioi.e.o"utmostogoodofaith"ohasoapparentlyobeenoviolatedobyotheo respondent-Applicanto himself.o Heo droveo theo Insuranceo Companyo too entero intooaobargainoevenothoughoheointendedotoouseotheovehicleoinobreachothereof.o o o Insofaro aso theo judgmento ino theo mattero ofo Jitendero Kumaro (Supra)oisoconcerned,otheovehicleoinoquestionowasodamagedodueotoofireoandoiso notodueotooanyoactooroomissionoonotheopartoofotheodriver/owner.oItowasoonotheo saidoaspectothatotheoHon'bleoSupremeoCourtoheldothatomerelyobecauseotheo driverodidonotoholdoaovalidolicenceocannotobeoaogroundotoorepudiateotheoclaimo sinceotheodamageocausedohadonoonexusowithotheovehicleobeingodriven.oThus,o theoreasonofororepudiation,onotoevenobeingoremotelyoassociatedotootheocauseo ofo claim,o hence,o theo ownero waso heldo entitledo too theo benefit.o Theo saido propositionowouldonotobeoapplicableoinotheopresentocaseosinceotheoprohibitiono wasoforouseoofovehicleoagainstohireoandorewardoandothatoatotheotimeowhenotheo accidentoinoquestionooccurred,otheovehicleoinoquestionowasobeingousedoasoao taxioforohireoandoreward;oandoaopassengerowasotravellingoinotheosame.o o o ReferenceotootheojudgmentoofoB.V.oNagarajuo(Supra)oisoalsoo misplacedoandoevenotheosameodoesonotoapplyotootheofactsoofotheopresentocase.o Ino theo abovesaido case,o theo policyo waso comprehensiveo ando theo vehicleo ino questiono waso registeredo ando insuredo aso ao goodso vehicles.o Ito waso merelyo allegedothatotheonumberoofopassengersosittingoinotheogoodsovehicleowasomoreo thanotheopassengersothatohadobeenopermitted.oTheosaidousageowasoheldotoobeo merelyoanoirregularityoandonototoobeoanyofundamentalobreachoofotheotermsoando conditionsoofotheocontract/opolicy.oInotheopresentocase,otheovehicleowasonoto CWP-16427-2022o -26-2023:PHHC:157607 registeredoasoaopassengerovehicleoandowasoregisteredoasoaoprivateovehicle.o Hence,otheoviolationowasoinomaterialobreachoofotheotermsoandoconditionsoofo theo Insuranceo Policy.o Similarly,o referenceo too theo judgmento ofo Newo Indiao AssuranceoCo.o(supra)oasowelloasotootheomatteroofoM/soModernoInsulatorso (supra)owouldonotobeoattractedosinceotheosameodealowithotheoanoissueowhereo theo termso ando conditionso wereo noto knowno too theo insured.o Theo contemporaneousoevidenceoavailableoonorecordoofothisocaseoratherosuggestsotoo theocontrary.oTheoexclusionoclauseowasoclearlyolegibleoandowasosetooutoonotheo insuranceocoveronoteoandoonotheofirstopageoitself,owhichocouldonotohaveobeeno missed.oFurther,otheorespondent-Applicantohadonotoclaimedoinohisooriginalo applicationobeforeotheoPermanentoLokoAdalatoitselfothatotheoexclusionoclauseo wasonotomadeoknownotoohim.oTheorespondent-Applicantobeingoaotaxiooperatoro ando runningo taxio serviceso ando alsoo owningo hiso owno vehicleso wouldo beo presumedotoobeoawareoofodifferentoregistrationsoandoInsuranceoPolicy.oItoiso hardo too comprehendo thato despiteo absenceo ofo anyo sucho pleadingo ino theo applicationofiledobeforeotheoPermanentoLokoAdalato(PublicoUtilityoServices),o Chandigarh,oitooughtotoobeostilloconcludedothatotheo"exclusion"oclausesoofotheo InsuranceoPolicyowasonotoknownotootheorespondent-Applicant.oo o o Takingointooconsiderationotheoaspectonoticedoaboveoasoalsootheo ratioolaidodownoinotheojudgmentsoreliedoonobyotheocounseloforotheopetitionero andotheonon-applicabilityoofotheojudgmentsoreliedoonobyotheocounseloforotheo respondent-Applicant,o Io amo ofo theo viewo thato theo Permanento Loko Adalato (PublicoUtilityoServices),oChandigarhofelloinoerroroinofailingotooappreciateotheo 'limitationso aso too use'o ofo theo vehicleo availableo ono o theo o firsto o pageo o ofooooooooooo theo insuranceo coveronoteo reflectingo ao materialo conditiono ofo theo Insuranceo CWP-16427-2022o -27-2023:PHHC:157607 Policy.oTheorespondent-Applicantoconcealedotheosaidoaspectoand/orousedotheo vehicleoinoquestionoinobreachothereof.oSuchobreachocannotobeodeemedotoobeo unintentionaloorobonafide.oThereoisoalsoonothingoonorecordotoosuggestothato completeo information,o ino allo respects,o hado beeno dulyo disclosedo byo theo respondent-Applicantotootheopetitioner-InsuranceoCompany.oThereoisothusoao consciousonon-disclosureoofotheomaterialoinformationowhichowasocrucialoforo theoInsuranceoCompanyotoounderwriteoaorisk.oo o o Theorespondent-Applicantowasothusoinobreachoofotheomaterialo termso ando conditionso ofo theo policyo ando thato theo Permanento Loko Adalato (PublicoUtilityoServices),oChandigarhofailedotooappreciateothatotheocontractoofo insuranceocanobeoenforcedoagainstoaoCompanyowhenoaomaterialofundamentalo conditiono iso noto violated.o Theo aboveo non-appreciationo ofo theo exclusiono clause,owhichohasoimpactoonotheocontract,oreferredotooandoreliedouponobyotheo counseloforotheopetitioner-InsuranceoCompany,otheoconclusionodrawnobyotheo PermanentoLokoAdalato(PublicoUtilityoServices),oChandigarhosuffersofromo failureotooconsiderotheomandateoofoInsuranceoActoasowelloasoimpactoofobreacho ofo integral,o fundamentalo ando essentialo terms,o ono theo enforceabilityo ofo ao contract.o Ao claimanto whoo failso too establisho allo prudento careo ando caution,o cannoto pleado victimizationo oro invokeo sympathy.o Theo onuso too dispelo theo suspiciouso circumstanceso lieso ono theo persono claimingo benefit.o Ifo theo probabilitiesodoonotosupportotheoclaimobyotheoclaimant,oheocannotostilloclaimo compoundingoofohisolapseoandobeostillogivenobenefit.oInvocationoofosympathyo asowouldocompromiseoruleoofolawoamountsotoogivingopremiumotooaoviolatoro whicho tendso too ao beliefo thato breacho ofo conditionso haso noo bearingo oro consequences,ounderminingotheoveryoessenceoofocommercialocontracting.oTheo CWP-16427-2022o -28-2023:PHHC:157607 PermanentoLokoAdalatofailedotooconsiderotheolawoandoessenceoofotheocontracto andothusorendersotheoAwardoliableotoobeosetoaside.oo o o Itoisowelloestablishedocordialoruleothatoaocontactoofoinsuranceoisoao contracto'uberrimaofides'oandothereomustobeoaocompleteogoodofaithoonotheoparto ofotheoinsured,owhooisounderoaosolemnoobligationotoomakeoaofullodisclosureoofo materialofactsorelevantoforotheoinsurerotootakeointooaccountobeforeoacceptingoao proposalooronot.oTheoHon'bleoSupremeoCourtoheldoinotheomatteroofo'LICoofo IndiaoVersusoSmt.oG.M.oChannabasemma'oreportedoasoAIRo1991oSCo392o (atopageo393)othatotheoaboveodutyoofotheoinsuredocannotobeodiluted.oInsuranceo beingoaocontractoamongstotheoparties,oeachopartyohasotooupholdoitsoendoofotheo bargainotooclaimotheobenefitoofoinsurance.oWhenotheounderwritingooforiskoiso subjectotoocertainoexclusions,oallowingotheoclaimodespiteoinoviolationoofotermso andoconditionsoofotheoPolicyoratheroamountsotoore-writingotheotermsoofotheo contractoamongstotheopartiesoandorenderingotheoexclusionsonugatory.oClearly,o exerciseoofosuchosympathyotreadsobeyondotheoscopeooforeviewoandounlesso circumstancesoshowothatotheoviolationoisoneitherofundamentalonoromaterialo andohadonotobeenorelevantoforotheodecisionotoounderwriteotheoriskoorothatotheo incidenceoofoclaimowasoinonoowayorelatedotootheoexclusionooroclaimedobreach.o However,owhereotheoincidenceoofobreachoitselfoisoanoexclusion,oitowouldonoto beo propero foro ao Courto too holdo thato notwithstandingo sucho violation,o theo insuranceo companyo wouldo stillo beo liable.o Commercialo contractso coveringo risksogeneralizationsoandospreadoundertakeotheoriskoatodifferentoconditions.oIto iso alsoo noto anybody'so caseo thato thereo iso noo insuranceo policyo foro theo taxio operatorsoorothatotheopetitioner-InsuranceoCompanyohasoaomonopolyoandotheo insuredohadonoooption.oItoisoalsoonototheocaseothatothereoisonoodifferenceoofo CWP-16427-2022o -29-2023:PHHC:157607 premiumoorothatoevenothoughocompleteodisclosureohadobeenomadeobyotheo insuredoandotheopolicyowasoissuedoforotheosameogivingohimoreasonsotoobelieveo thatotheopolicyowouldoalsoocoverotheoriskoforowhichoclaimohasofinallyobeeno lodged.o Noo sucho pleao waso raisedo ino theo originalo claimo ando theo claimanto cannotobeopermittedotooimproveoonohisopleadingsoatotheowritostage.o o o Itoisoalsooseenothatoevenothoughoallotheseoobjectionsohadobeeno raisedobyotheoInsuranceoCompanyoinoitsoreply,ohowever,otheoPermanentoLoko Adalatofailedotooanswerotheosameoandoallowedotheoclaimoononon-standardo basisodespiteoacceptingotheobreach.oThereoisothusoaofailureotooappreciateotheo factsoandotheorelevantolawowhichorendersotheoAwardoliableotoobeosetoaside.o o o Hence,otheopetitionobearingoNo.CWP-16427-2022otitledoaso'Theo OrientaloInsuranceoCompanyoLtd.oandoAnr.oVersusoPermanentoLokoAdalato andoAnother'oisoallowedoandotheoimpugnedoAwardodatedo26.05.2022opassedo byoPermanentoLokoAdalato(PublicoUtilityoServices),oChandigarhoisosetoaside.o Onotheootherohand,otheopetitionobearingoNo.CWP-25127-2022otitledoaso'Varuno BhasinoVersusoChairmanoPermanentoLokoAdalat,oChandigarhoandoothersoiso consequentlyodismissed.o o o o o o o o o (VINODoS.oBHARDWAJ)o

05.12.2023.oo o o o o oooooo ooJUDGEo rajendero o o Whetherospeaking/reasonedo :oYes/Noo o o Whetheroreportableo o :oYes/Noo