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On the other hand, learned counsel for respondents No.3 and 4, driver and owner respectively contends that the driver of the offending vehicle was holding a valid driving licence. The licence had already been renewed twice by the competent authority.

I have heard learned counsel for the parties and perused the record carefully.

The Hon'ble Supreme Court in New India Assurance Co., Shimla vs. Kamla and ors. 2001(3) RCR (Civil), 716, has held as under:-

"12. As a point of law we have no manner of doubt that a fake licence cannot get its forgery outfit stripped off merely on account of some officer renewing the same with or without knowing it to be forged. Section15 of the Act only empowers and Licensing Authority to "renew a driving licence issued under the provisions of this Act with effect from the date of its expiry". No Licensing Authority has the power to renew a fake licence and, therefore, a renewal if at all made cannot transform a fake licence as genuine. Any counterfeit document showing that it contains a purported order of a statutory authority would ever remain counterfeit albeit the fact that other persons including some statutory authorities would have acted on the document unwittingly on the assumption that it is genuine."