Motor Vehicles

Motor Vehicles Act, 1988

— S. 149(2)(a)(ii) — Breach of — Where licence of driver subsequently found to be discrepant, S. 149(2)(a)(ii) not necessarily breached — Prior to appointing of the driver as such, owner of the vehicle having seen and examined his driving licence and, after taking the test of his driving, having found him competent to drive the vehicle — Insurer not proving that the owner of the vehicle was negligent and had failed to exercise reasonable care in the matter of fulfilling the condition of the policy regarding use of vehicles by a duly licensed driver — In such circumstances, notwithstanding that the licence of the said driver was later found not to have been issued by the licensing authority of the place concerned, held, there was no breach of S. 149(2)(a)(ii) — Hence, insurer not entitled to recover the amount of compensation paid by it for the motor accident caused by such driver, (2006) 7 SCC 318