JOHN T. ELLIS, LTD. v. HINDS.

(1946) 80 Ll L Rep 231

KING'S BENCH(DIVISIONAL COURT).

Before Lord Goddard (Lord Chief Justice), Mr. Justice Humphreys and Mr. Justice Lewis.

Road Traffic Act, 1930 - Offence - Uninsured driver - Driver not qualified to hold licence - Omission by employers to make inquiries - Permitted use of motor vehicle on road - Policy complying with Act - M. employed by E. Ltd. as driver of their motor vehicle - Policy taken out by E. Ltd. with insurance company covering third-party risks, but providing that "The company shall not be liable in respect of any claim arising (1) whilst such vehicle is . . . (c) being driven with the general consent of the insured or of his representative by any person who to the knowledge of the insured or of such representative does not hold a licence to drive such vehicle . . ." - Accident while M. driving, M., under 17 years of age, having no driving licence and not qualified to obtain one - E. Ltd. without express knowledge that M. was unlicensed or unqualified to obtain one - Information preferred against E. Ltd. charging them with unlawfully permitting the use of a motor vehicle on a road when there was not in force such policy covering the user as complied with the requirements of the Act - Conviction - Case stated - Finding of Justices (affirmed by Quarter Sessions) that E. Ltd. having recklessly failed to make inquiries must be charged with notice of what such inquiries would have revealed; that by reason thereof E. Ltd. were not within the cover of the policy; that the fact that the insurance company subsequently agreed to indemnify E. Ltd. was irrelevant; and that therefore they were guilty of the offence charged - Appeal by E. Ltd. - Construction of exceptions cause in policy - "To the knowledge of" - Whether E. Ltd. under duty to see that their driver was himself covered by policy - "User of the vehicle" - Road Traffic Act, 1930, Sect. 35 (1).