New India Assurance Co. Ltd. And Anr. vs Nathiben Chatrabhuj And Ors. on 19 January, 1982
61. The provisions have been elaborately considered by a Full Bench of The Gujarat High Court. It is pointed by P D. Desai, J. (as he then was) in New India Assurance Co. Ltd. v. Nathiben Chatrubhuj (Supra) that, as permitted by Section 96(2)(b), the above conditions can certainly be imposed in a permit granted in respect of the vehicle. But it will be necessary for the Insurance Company to establish, by evidence, that a permit was granted with the above conditions. While it is sufficient for the claimant to show that the statutory insurance of Act-policy was available i.e., to the extent in Section 95(1)(b)(i) and (ii), the Insurance Company, if it wants to disclaim the liability of satisfying the decrees against the insured must prove that, on the date of the contract of Insurance the insured vehicle was not expressly or impliedly covered by a permit to ply for hire or reward ; or that other conditions of the permit were violated. Unless this burden is discharged by the Company it will be liable.