NATIONAL INSURANCE CO. LTD. vs CHALLA UPENDRA RAO .

The Supreme Court addressed the liability of the insurer under Section 149 of the Motor Vehicles Act, 1988, in a case where an auto rickshaw was operated without a valid permit. The Court upheld the High Court's ruling that the insurer was liable to indemnify the compensation awarded, despite the breach of policy conditions, emphasizing that the policy was in effect at the time of the accident. The Court concluded that the insurer's defenses under Section 149(2)(a)(i) were not applicable in this case, affirming the High Court's decision.