NEW INDIA ASSURANCE CO. LTD. vs MANDAR MADHAV TAMBE & ORS.

The Supreme Court upheld the Bombay High Court's ruling that the appellant Insurance Company was liable to pay compensation under Section 96(2)(b)(ii) of the Motor Vehicles Act, 1939, despite the respondent No.3 not holding a valid driving licence at the time of the accident. The Court clarified that a learner's licence holder is considered 'duly licensed' under the Act, thus the exclusion clause in the insurance policy did not absolve the insurer of liability. The appeal was dismissed, affirming the compensation awarded to the claimant.