BHUWAN SINGH vs M/S ORIENTAL INSURANCE CO.LTD.

The Supreme Court held that under Section 149 of the Motor Vehicles Act, 1988, an insurance company is obligated to indemnify the owner of a vehicle unless it proves that the driver was not holding a valid license. The Court found that the appellant's claim that he was not driving the tractor was not adequately addressed by the tribunal, leading to a legal infirmity in the High Court's dismissal of the appeal. The Court ruled that the insurance company failed to demonstrate any breach of contract, thus reversing the High Court's decision and reinstating the tribunal's award of Rs. 1,32,000 in favor of the claimants.