LAL CHAND vs ORIENTAL INSURANCE CO. LTD.

The Supreme Court addressed an appeal concerning the liability of an insurance company under the Motor Vehicles Act, specifically Section 174. The Court held that the High Court erred in modifying the Tribunal's award, which had found the owner of the vehicle not at fault and the insurance company liable for compensation. The Court emphasized that the owner had taken reasonable steps to verify the driver's license, and thus the insurance company could not recover the compensation paid to the claimants. The appeal was allowed, restoring the Tribunal's decision.