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Issues involved: Interpretation of Motor Vehicles Act regarding renewal of driving licenses and liability of Insurance Company in case of accidents caused by drivers with renewed licenses.
Interpretation of Section 15 of the Motor Vehicles Act: The High Court agreed with the Motor Accident Claims Tribunal's final conclusion that the Insurance Company would be liable to pay compensation if the license had been renewed, even if it was originally a faked license. The Tribunal's finding that a faked license could not be validly renewed was criticized by the High Court. The Court pointed out that Section 15 of the Motor Vehicles Act allows for the renewal of driving licenses by the licensing authority upon application, with provisions for conducting tests, including medical tests, if necessary. The Court emphasized that if a license is renewed, it becomes valid under the Act, and in such cases, the Insurance Company would be responsible for compensation if an accident occurs due to the driver possessing a duly renewed license. Conclusion: The High Court dismissed the appeal, affirming that the Insurance Company would be liable to reimburse the insured if an accident was caused by a driver with a license that was duly renewed in accordance with the provisions of Section 15 of the Motor Vehicles Act.
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