Just structure it logically, ie you are the registered keeper of the vehicle, the driver at the time of the event has not been identified and Smart has failed to meet the requirements of PoFA 2012 to transfer liability to you because …. and therefore you are not liable for any alleged breach of contract by the driver of the car.
You can mention the appeal if you want because it demonstrates you tried to resolve this without going to court, but the claimant never responded. If you mention the appeal, state the basis on which you appealed also.
Post it here for comments if you want.