IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.4539 OF 2009 (Arising out of S.L.P. (C) No.19006 of 2007)

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

Versus

Saheb Singh                     ...Respondent(s)

O  R  D  E  R

Leave granted.

Heard learned counsel for the appellant. In spite of service of notice, nobody has entered appearance on behalf of  

the respondent to contest the prayer made in this appeal. The respondent filed a complaint before the District Consumer Disputes  

Redressal Forum, Gwalior, Madhya Pradesh [for short, “the District Forum”] for  award of compensation of Rs.2,27,730/- with interest @ 18% per annum in lieu of  

damage caused to the truck which was insured with the appellant.  The District  Forum dismissed the complaint on the ground that licence of the driver of the truck  

viz.,  Khel  Singh  was  fake.   On  appeal,  the  Madhya  Pradesh  State  Consumer  Disputes Redressal Commission [for short, “the State Commission”] concurred with  

the District Forum that the licence of the driver was fake but, it granted relief to the  complainant by relying upon the judgement of  this  Court in  National  Insurance  

Company Limited vs.  Swaran Singh [2004 (3) S.C.C.297].  The order of the State  Commission has  been confirmed  by  the  National  Consumer

...2/-

- 2 -  

Disputes Redressal Commission [for short “the National Commission].  Hence, this  appeal by special leave.

Learned  counsel  for  the  appellant  submitted  that  the  judgment  in  Swaran Singh’s case  (supra)  has  been clarified  in  National  Insurance  Company  

Limited vs.  Laxmi  Narain  Dhut [2007  (3)  S.C.C.700]  and  in  view  of  the  latter  decision,  insured cannot claim compensation for damage to his  vehicle or goods  

where the licence of the driver is fake.  He pointed out that the insured-respondent  had claimed compensation for the damage caused to his own vehicle and not for  

third party and as such the ratio of Laxmi Narain Dhut’s case is squarely applicable  to the present case.

We have carefully  gone  through the record and are  satisfied  that  the  issue raised in this appeal is covered by the judgment in Laxmi Narain Dhut’s case  

and  on  that  ground  the  orders  passed  by  the  State  Commission  and  National  Commission are liable to be set aside.  

Accordingly, the appeal is allowed, impugned orders passed by the State  Commission as well  as  by the National Commission are set  aside and the order  

rendered by the District Forum dismissing the complaint is restored.

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

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

New Delhi, July 20, 2009.