(M.R. Shah and Krishna Murari, JJ.)
National Insurance Company Ltd. ______________________ Appellant;
v.
Vijay and Others ________________________________ Respondent(s).
Civil Appeal Nos. of 2022 (@ Special Leave Petition (C) Nos. 677-681/2019), decided on September 15, 2022
The Order of the court was delivered by
Order
1. Leave granted.
2. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court by which the High Court has saddled with the liability of the insurer at 88.5% of the total compensation payable, in the light of premium charged while insuring the Car in question as a private Car and the recovery rights in respect of 11.5% of the total compensation have been granted to the insurer, the insurer has preferred the present appeal.
3. From the material on record, it emerges that the vehicle in question was registered as commercial vehicle. However, despite the same, the owner obtained the insurance policy as private Car use. Thus, there was a misrepresentation on the part of the insured-owner of the vehicle. In that view of the matter and considering Section 149 (2) of the Motor Vehicles Act, 1988, the liability of the insurance company under the insurance would not arise. The High Court has apportioned the liability on the basis of the premium to be paid as a commercial vehicle and the private use vehicle which is unsustainable. The moment it is found that the insurance policy was obtained by misrepresentation, in that case, there shall not be any liability of the insurance company at all.
4. In that view of the matter, the impugned judgment and order passed by the High Court is unsustainable even with respect to the apportioning of the liability on the basis of the premium to be paid as a commercial vehicle and the private Car use vehicle. Under that circumstances, the entire amount of compensation paid to the original claimant shall be recoverable by the Insurance company from the respondent/owner.
5. In view of the above and for the reasons stated hereinabove, present appeals succeed. The impugned judgment and order passed by the High Court is modified and it is held that the insurance company shall not be liable to pay the compensation with respect to the insurance which was obtained by the owner by misrepresentation. Consequently, there shall not be any liability of the insurance company and it will be open for the insurance company to recover the entire amount paid to the original claimant(s) from the respondent/owner.
6. The present appeals are allowed to the aforesaid extent. No costs.
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