In Brief
A motorist was killed when hit by a truck with temporary registration that lacked a valid permit under Section 66 of the Motor Vehicles Act. The insurance company denied liability, claiming the vehicle was being used illegally. Both the tribunal and High Court awarded compensation of Rs. 15,63,120 and directed the insurer to pay but recover the amount from the vehicle owner and driver. The Supreme Court upheld this decision, holding that operating a vehicle without a permit is a fundamental statutory breach distinct from technical driving licence violations. Exceptions to the permit requirement must be formally pleaded and proved, not invoked during argument. The insurer remains liable to third parties but can recover from the owner under the pay-and-recover principle."
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