IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.3501 OF 2004

National Insurance Co. Ltd.      ...Appellant(s)

Versus

Harbhajan Lal      ...Respondent(s)

With Civil Appeal Nos.3198 of 2005, 3612 of 2005, 5644 of 2006, 3249 of 2003, 3250 of 2003, 3251 of 2003, 3252 of 2003, 6267 of 2003, 5554 of 2004 and 7656 of 2004

O  R  D  E  R

Civil Appeal No.3612 of 2005:

Heard learned counsel for the parties.

The  District  Consumer  Disputes  Redressal  Forum  [for  short,  “District

Forum”] dismissed the complaint on the ground that the driving licence was a forged

one.  In view of this finding, the District Forum came to the conclusion that as there

was no deficiency in service, the complaint was fit to be dismissed and the same was,

accordingly,  dismissed.  Against the said order,  when the matter was taken to the

State Consumer Disputes Redressal Commission [for short,  “State Commission”]  in

appeal, the order was reversed by placing reliance upon the judgement rendered by

this court in the case of  National Insurance Company Limited vs.  Swaran Singh &

Ors. [2004 (3) S.C.C.297], which order has been confirmed in revision by the National

Consumer  Disputes  Redressal  Commission  [for  short,  “National  Commission'].

Hence, this appeal by special leave.

....2/-

- 2 -

Learned counsel appearing on behalf of the appellant submitted that the

judgment rendered by this Court in the case of Swaran Singh (supra) was applicable

only in relation to the case of third party.  In the present case, no complaint was filed

by third party but the complaint was filed by the insured.  Learned counsel appearing

on behalf of the appellant stated that it has been clarified by this Court in the case of

National Insurance Company Limited vs.  Laxmi Narain Dhut [2007 (3) S.C.C.700)

that the ratio laid down in the case of  Swaran Singh (supra) would apply only in

relation to the cases of third party and not in relation to the own damaged cases, in

which eventuality the insurer is only liable to show that the licence was fake one.

Accordingly, the appeal is allowed, impugned orders rendered by the State

Commission and the National Commission are set aside and the same passed by the

District Forum dismissing the complaint is restored.

Civil Appeal Nos.3249 of 2003, 3250 of 2003, 3251 of 2003 and 3252 of 2003:

Perused the records.

We do not find any ground to interfere with the impugned orders.

The civil appeals are, accordingly, dismissed.

No costs.

Civil Appeal No.3198 of 2005:

Heard learned counsel appearing on behalf of the parties.

In the facts and circumstances of the case, we are not inclined to interfere

with the impugned order.

The civil appeal is, accordingly, dismissed.

....3/-

- 3 -

Civil Appeal No.5644 of 2005:

Heard learned counsel appearing on behalf of the appellant.

We do not find any ground to interfere with the impugned order.

The civil appeal is, accordingly, dismissed.

Civil Appeal No.3501 of 2004:

Heard learned counsel appearing on behalf of the appellant.

In spite of service of notice, nobody has entered appearance to contest the

prayer made in this appeal.

In the present case, the District Consumer Disputes Redressal Forum [for

short,  “District  Forum”] allowed the complaint but when the matter was taken in

appeal, the same was reversed and the complaint was dismissed.  Against the order of

the Appellate Authority, a revision was filed before the National Consumer Disputes

Redressal  Commission  [for  short,  “National  Commission'],  which  though  has

recorded a finding categorically that the licence of the driver employed by the insured

was fake one but there was nothing to show that this fact was within the knowledge of

the insured.  Hence, this appeal by special leave.

In our view, the point involved in the present case is squarely covered by a

decision of this Court in the case of National Insurance Company Limited vs. Laxmi

Narain Dhut [2007 (3) S.C.C.700), in which it has been laid down that no sooner the

insurer is able to prove that the licence was fake one, the insurer is absolved from its

liability.

This being the position, we are of the view that the National Commission

was not justified in allowing the revision application.

...4/-

- 4 -  

Accordingly,  the  appeal  is  allowed,  impugned  order  rendered  by  the

National  Commission  is  set  aside  and  the  same  passed  by  the  State  Consumer

Disputes Redressal Commission is restored.

Civil Appeal No.6267 of 2003:

Heard learned counsel appearing on behalf of the appellant.

We do not find any ground to interfere with the impugned order.

The civil appeal is, accordingly, dismissed.

No costs.

Civil Appeal No.5554 of 2004:

Perused the records.

We do not find any ground to interfere with the impugned order.

The civil appeal is, accordingly, dismissed.

No costs.

Civil Appeal No.7656 of 2004:

Heard learned counsel appearing on behalf of the parties.

We do not find any ground to interfere with the impugned order.

The civil appeal is, accordingly, dismissed.

No costs.

......................J.       [B.N. AGRAWAL]

......................J.       [G.S. SINGHVI]

New Delhi, September 18, 2008.