Pradeep Kumar Jain vs Buttan And Ors

The Supreme Court upheld the decision of the Motor Accident Claims Tribunal, affirming that the claimants were unauthorized passengers in a Matador vehicle, which was being driven rashly by Chetan Kumar without a valid license. The Court reiterated that the insurance policy did not cover passengers, as per the Motor Vehicles Act, 1988, and that the Insurance Company failed to prove a breach of contract by the vehicle owner. Consequently, the appeal was dismissed, and the Insurance Company was directed to pay the awarded amount to the claimants, with the right to recover from the vehicle owner in the same proceedings.