United India Insurance Co. Ltd. v. Swaran Lata Parida & Ors.

Delhi High Court · 07 May 2012 · 2012:DHC:3118

G. P. Mittal

MAC. APP. No.144/2006

2012:DHC:3118

motor_accident_claims / insurance_liability / transport_law appeal_dismissed Significant

AI Summary

A valid LMV licence prior to 2001 included authorization to drive light goods vehicles, thus the insurer was liable to indemnify despite the driver's licence classification.

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MAC. APP. No.144/2006 HIGH COURT OF DELHI
Date of Decision: 7th May, 2012 MAC. APP. No.144/2006
UNITED INDIA INSURANCE CO. LTD. ..... Appellant
Through: Mr.Vishnu Mehra with Ms. Shakshi Gupta, Advocates

VERSUS

SWARAN LATA PARIDA & ORS. ..... Respondents
Through: None

CORAM:

HON'BLE MR. JUSTICE G.P.MITTAL

JUDGMENT

G. P. MITTAL, J.

(ORAL)

1. The Appellant United India Insurance Co. Ltd. impugns a judgment dated 15.10.2005 passed by the Motor Accident Claims Tribunal(the Claims Tribunal)whereby while awarding a compensation of `3,46,400/-, the Appellant’s contention that the driver Umesh Chand did not possess a valid driving licence to drive the offending vehicle No.HR-26A-8686( a tempo) was rejected. 2012:DHC:3118

2. The learned counsel for the Appellant contends that there is a distinction between LMV (transport) and LMV(non-transport). Since the Respondent No.5 (the driver) possessed a licence to drive only LMV (non-transport) and not a transport vehicle, he was not competent to drive a tempo and thus, the Appellant was entitled to be exonerated of its liability to indemnify the insured. In any case, the Appellant was entitled to recovery rights.

3. In this case, the accident took place on 01.02.1996. The Central Motor Vehicles Rules 1989, Form 4 was amended with effect from 28.03.2001. The Appeal is squarely covered by a report of the Supreme Court in National Insurance Company Ltd. v. Annappa Irappa Nesaria & Ors., (2008) 3 SCC 464. The Supreme Court held that in the Form 4, transport vehicle was substituted for medium goods vehicle and heavy goods vehicle by GSR 221(E) with effect from 28.03.2001. Before that amendment, light motor vehicle included a light passenger carriage vehicle as well as light goods carriage vehicle. Paras 17 to 20 of the report are extracted hereunder:

“17. Rule 14 prescribes for filing of an application in Form 4, for a licence to drive a motor vehicle, categorizing the same in nine types of vehicles. 18. Clause (e) provides for “transport vehicle” which has been substituted by GSR 221(E) with effect from 28- 3-2001. Before the amendment in 2001, the entries “medium goods vehicle” and “heavy goods vehicle” existed which have been substituted by “transport

vehicle”. As noticed hereinbefore, “light motor vehicles” also found place therein. 19.“Light motor vehicle” is defined in Section 2(21) and, therefore, in view of the provision, as then existed, it included a light transport vehicle. Form 6 provides for the manner in which the licence is to be granted, the relevant portion whereof reads as under: “Authorisation to drive transport vehicle Number……… Date….. Authorised to drive transport vehicle with effect from… Badge number………. Signature Designation of the licensing authority Name and designation of the authority who Conducted the driving test.”

20. From what has been noticed hereinbefore, it is evident that “transport vehicle” has now been substituted for “medium goods vehicle” and heavy goods vehicle.” A driver who had a valid licence to drive a light motor vehicle, therefore, was authorized to drive a light goods vehicle as well.”

4. It is not in dispute that the Respondent No.5 did possess a valid licence to drive an LMV on the date of the accident i.e. 01.02.1996 which entitled him to drive the light goods carriage vehicle as well, which is the vehicle involved in the accident.

5. The Appeal is devoid of any merit; the same is accordingly dismissed.

6. The statutory amount of `25,000/- shall be refunded to the Appellant Insurance Company.

JUDGE MAY 07, 2012 pst

United India Insurance Co. Ltd. v. Swaran Lata Parida & Ors.

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