Full Judgment Text
1
Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.5826 OF 2011
Mukund Dewangan … Appellant
Vs.
Oriental Insurance Co. Ltd. etc. … Respondents
[With SLP [C] Nos.32828, 32833 and 32835/2010, 8709-8710 and
8712-8713/2014, 20072, 3300 and 3302/2015, 887-890/2013,
16082/2012, 28455-28456/2013, CA No. 6379/2013, SLP (C)
Nos.13008, 15759-15760 and 14333-14334/2014, 6429/2015, 36364-
36365/2014, 15924/2015, CA No.9990/14, SLP (C) Nos. 8704-
8706/2014, CA Nos. 4068-4069/2012, SLP (C) No. 32827/2010 and
CA No.8992/2012]
JUDGMENT
ORDER
ARUN MISHRA, J.
1. The question raised is whether for the drivers having licence to
drive light motor vehicles there is a necessity of obtaining
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endorsement to drive the transport vehicle when the transport vehicle
is of class of light motor vehicle.
2. We have heard learned counsel for the parties at length. For
consideration of aforesaid question, it is necessary to refer to various
provisions and decisions.
3. Driving licence has been defined in section 2(10) of the Act of
1988. The provision is extracted hereinbelow :
“2(10) “ driving licence" means the licence issued by a
competent authority under Chapter II authorising the person
specified therein to drive, otherwise than as a learner, a motor
vehicle or a motor vehicle of any specified class or description.”
Gross vehicle weight has been defined in section 2(15) thus :
“2(15) “ gross vehicle weight" means in respect of any vehicle
the total weight of the vehicle and load certified and registered
by the registering authority as permissible for that vehicle;”
Heavy goods vehicle has been defined in section 2(16) to mean:
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“2(16) “ heavy goods vehicle" means any goods carriage the
gross vehicle weight of which, or a tractor or a road-roller the
unladen weight of either of which, exceeds 12,000 kilograms;”
Heavy passenger motor vehicle has been defined in section
2(17) thus :
“2(17) “ heavy passenger motor vehicle" means any public
service vehicle or private service vehicle or educational
institution bus or omnibus the gross vehicle weight of any of
which; or a motor-car the unladen weight of which, exceeds
12,000 kilograms;”
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Light motor vehicle has been defined in section 2(21) of the Act
thus :
“2(21) “ light motor vehicle" means a transport vehicle or
omnibus the gross vehicle weight of either of which or a motor-
car or tractor or road-roller the unladen weight of any of
which, does not exceed 7,500 kilograms;”
Medium goods vehicle has been defined in section 2(23) to
mean :
“2(23) “ medium goods vehicle" means any goods carriage
other than a light motor vehicle or a heavy goods vehicle;”
Medium passenger motor vehicle is defined under section 2(24)
thus :
“2(24) “ medium passenger motor vehicle" means any public
service vehicle or private service vehicle, or educational
institution bus other than a motor-cycle, invalid carriage, light
motor vehicle or heavy passenger motor vehicle;”
Motor car has been defined in section 2(26) of the Act of 1988
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thus :
“2(26) “ motor-car" means any motor vehicle other than a
transport vehicle, omnibus, road-roller, tractor, motor-cycle or
invalid carriage;”
“Omnibus” has been defined in section 2(29) thus :
“2(29) “ omnibus" means any motor vehicle constructed or
adapted to carry more than six persons excluding the driver;”
“Tractor” has been defined in section 2(44) of the Act thus :
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“2(44) “ tractor" means a motor vehicle which is not itself
constructed to carry any load (other than equipment used for
the purpose of propulsion); but excludes a road-roller;”
“Transport vehicle has been defined in section 2(47) thus :
“2(47) “ transport vehicle" means a public service vehicle, a
goods carriage, an educational institution bus or a private
service vehicle;”
“Unladen weight” has been defined in section 2(48) thus :
“2(48) “ unladen weight" means the weight of a vehicle or
trailer including all equipments ordinarily used with the
vehicle or trailer when working, but excluding the weight of a
driver or attendant; and where alternative parts or bodies are
used the unladen weight of the vehicle means the weight of the
vehicle with the heaviest such alternative part or body;”
4. The provisions under section 2 define heavy goods vehicles,
heavy passenger motor vehicle, medium goods vehicle, medium
passenger motor vehicle and light motor vehicle separately. Section
2(21) deals with class of Light Motor Vehicle which includes a
transport vehicle or omnibus, the gross vehicle weight of either of
which does not exceed 7500 kgs. or a motor car or tractor or road
JUDGMENT
roller, the unladen weight of any of which does not exceed 7500 kgs.
The transport vehicle has been defined in section 2(47), omnibus has
been defined in section 2(29). However, the transport vehicle or
omnibus the gross vehicle weight of which does not exceed 7500 kgs.,
has been included in section 2(21) of the Act of 1988. The gross
vehicle weight has been defined in section 2(15). In the case of Light
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Motor Vehicle, the total weight of the transport vehicle or omnibus,
the load certified by the Registering Authority should not exceed 7500
kgs. and in case of motor car, tractor or road roller, it is necessary that
unladen weight as defined in section 2(48) of the Act of 1988 should
not exceed 7500 kgs.
5. To dilate further upon the issue, it is necessary to take note of
other provisions of the Act. Public service vehicle, goods carriage, an
educational institution bus and private service vehicle are included in
transport vehicles. They are defined in Sections 2(35), 2(14), 2(11)
and 2(33) respectively. The provisions are extracted hereunder:-
“2(35) “ public service vehicle" means any motor vehicle used
or adapted to be used for the carriage of passengers for hire or
reward, and includes a maxi-cab, a motor-cab, contract
carriage, and stage carriage;”
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“2(14) “ goods carriage" means any motor vehicle constructed
or adapted for use solely for the carriage of goods, or any
motor vehicle not so constructed or adapted when used for the
carriage of goods;”
“2(11) “ educational institution bus" means an omnibus, which
is owned by a college, school or other educational institution
and used solely for the purpose of transporting students or
staff of the educational institution in connection with any of its
activities;”
“2(33) “ private service vehicle" means a motor vehicle
constructed or adapted to carry more than six persons
excluding the driver and ordinarily used by or on behalf of the
owner of such vehicle for the purpose of carrying persons for,
or in connection with, his trade or business otherwise than for
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hire or reward but does not include a motor vehicle used for
public purposes;”
6. Section 3 of the Act of 1988 deals with the necessity for driving
licence. Same is extracted below :
“ 3. Necessity for driving licence.-- (1) No person shall drive a
motor vehicle in any public place unless he holds an effective
driving licence issued to him authorising him to drive the
vehicle; and no person shall so drive a transport vehicle [other
than a motor cab or motor cycle hired for his own use or
rented under any scheme made under sub-section (2) of section
75] unless his driving licence specifically entitles him so to do.
(2) The conditions subject to which sub-section (1) shall
not apply to a person receiving instructions in driving a motor
vehicle shall be such as may be prescribed by the Central
Government.”
7. Section 9 deals with grant of driving licence which reads as
under :
“ 9. Grant of driving licence.-- (1) Any person who is not for the
time being disqualified for holding or obtaining a driving
licence may apply to the licensing authority having jurisdiction
in the area—
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(i) in which he ordinarily resides or carries on business, or
(ii) in which the school or establishment referred to in section 12
from where he is receiving or has received instruction in
driving a motor vehicle is situated,
for the issue to him of a driving licence.
(2) Every application under sub-section (1) shall be in such
form and shall be accompanied by such fee and such
documents as may be prescribed by the Central Government.
(3) If the applicant passes such test as may be prescribed by the
Central Government, he shall be issued the driving licence:
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Provided that no such test shall be necessary where the
applicant produces proof to show that –
(a) (i) the applicant has previously held a driving licence and
that the period between the date of expiry of that licence
and the date of such application does not exceed five years;
or
(ii) the applicant holds or has previously held a driving
licence to drive such class of vehicle issued under
section 18; or
(iii) the applicant holds a driving licence to drive such class
of vehicle issued by a competent authority of any
country outside India, subject to the condition that the
applicant complies with the provisions of sub –section
(3) of section 8,
(b) the applicant is not suffering from any disease or disability
which is likely to cause the driving by him to be a source of
danger to the public; and the licensing authority may, for that
purpose, require the applicant to produce a medical certificate
in the same form and in the same manner as is referred to in
sub-section (3) of section 8.
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Provided further that where the application is for a
driving licence to drive a motor vehicle (not being a transport
vehicle), the licensing authority may exempt the applicant from
the test of competence to drive prescribed under this sub-
section, if the applicant possesses a driving certificate issued by
an automobile association recognised in this behalf by the State
Government.
(4) Where the application is for a licence to drive a transport
vehicle, no such authorisation shall be granted to any applicant
unless he possesses such minimum educational qualification as
may be prescribed by the Central Government and a driving
certificate issued by a school or establishment referred to in
section 12.
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(5) Where the applicant does not pass the test, he may be
permitted to reappear for the test after a period of seven days:
Provided that where the applicant does not pass the test
even after three appearances, he shall not be qualified to
reappear for such test before the expiry of a period of sixty
days from the date of last such test.
(6) The test of competence to drive shall be carried out in a
vehicle of the type to which the application refers:
Provided that a person who passed a test in driving a motor
cycle with gear shall be deemed also to have passed a test in
driving a motor cycle without gear.
(7) When any application has been duly made to the
appropriate licensing authority and the applicant has satisfied
such authority of his competence to drive, the licensing
authority shall issue the applicant a driving licence unless the
applicant is for the time being disqualified for holding or
obtaining a driving licence:
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Provided that a licensing authority may issue a driving
licence to drive a motor cycle or a light motor vehicle
notwithstanding that it is not the appropriate licensing
authority, if the licensing authority is satisfied that there is
good and sufficient reason for the applicant's inability to apply
to the appropriate licensing authority:
Provided further that the licensing authority shall not issue
a new driving licence to the applicant, if he had previously held
a driving licence, unless it is satisfied that there is good and
sufficient reason for his inability to obtain a duplicate copy of
his former licence.
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(8) If the licensing authority is satisfied, after giving the
applicant an opportunity of being heard, that he—
(a) is a habitual criminal or a habitual drunkard; or
(b) is a habitual addict to any narcotic drug or psychotropic
substance within the meaning of the Narcotic Drugs and
Psychotropic Substances Act, 1985; (61 of 1985); or
(c) is a person whose licence to drive any motor vehicle has,
at any time earlier, been revoked,
it may, for reasons to be recorded in writing, make an order
refusing to issue a driving licence to such person and any
person aggrieved by an order made by a licensing authority
under this sub-section may, within thirty days of the receipt of
the order, appeal to the prescribed authority.
(9) Any driving licence for driving a motor cycle in force
immediately before the commencement of this Act shall, after
such commencement, be deemed to be effective for driving a
motor cycle with or without gear.”
8. The application has to be made in such form as may be
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prescribed. Section 10 deals with the form and contents of the licence
to drive. Section 10 before its amendment made in 1994 by Act 54 of
1994 provided as under :
“ 10. Form and contents of licences to driver.-- (1) Every
learner's licence and driving licence, except a driving licence
issued under section 18, shall be in such form and shall contain
such information as may be prescribed by the Central
Government.
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(2) A learner's licence or, as the case may be, driving licence
shall also be expressed as entitling the holder to drive a motor
vehicle of one or more of the following classes, namely:--
(a) motor cycle without gear;
(b) motor cycle with gear;
(c) invalid carriage;
(d) light motor vehicle;
(e) medium goods vehicle;
(f) medium passenger motor vehicle;
(g) heavy goods vehicle;
(h) heavy passenger motor vehicle;”
(i) road-roller;
(j) motor vehicle of a specified description. ”
9. It is clear from the provisions of section 10(2) that the classes
of vehicles have been separately provided. Light motor vehicle has
been provided in section 10(2)(d). Transport vehicle had been inserted
in 1994 in place of sections 10(2)(e) to 10(2)(h), in place of medium
goods vehicle as provided in section 10(2)(e), medium passenger
motor vehicle provided in section 10(2)(f), heavy goods vehicle in
section 10(2)(g) and heavy passenger motor vehicle in section 10(2)
JUDGMENT
(h). Thus it is apparent that transport vehicles were included under the
Act of 1988 under the category of “light motor vehicle”, “heavy motor
vehicle” etc. as per gross vehicle weight or unladen weight, as the
case may be, is apparent from a bare reading of the aforesaid
classification given in section 10(2) of the Act read with definition of
light motor vehicle as defined in section 2(21) of the Act.
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The provisions contained in section 10 of the Act had been
amended vide Amendment Act 54 of 1994. The Statement of Objects
and Reasons of the Amendment Act 54 of 1994 reads :
“Amendment Act 54 of 1994 - Statement of Objects and Reasons.
– The Motor Vehicles Act, 1988 (59 of 1988) consolidated and
rationalised various laws regulating road transport. The Act
st
came into force with effect from 1 July, 1989 replacing the
Motor Vehicles Act, 1939.
2. After the coming into force of the Motor Vehicles Act,
1988, Government received a number of representations and
suggestions from the state govt. transport operators and
members of public regarding the inconvenience faced by them
because of the operation of some of the provisions of the 1988
Act. A Review Committee was, therefore, constituted by the
Government in March, 1990 to examine and review the 1988
Act.
3. The recommendations of the Review Committee were
forwarded to the State Governments for comments and they
generally agree with these recommendations. The Government
also considered a large number of representations received,
after finalisation of the Report of the Review Committee, from
the transport operators and public for making amendments in
the Act. The draft of the proposals based on the
recommendation of the Review Committee and representations
from the public were placed before the Transport Development
Council for seeking their views in the matter. The important
suggestions made by the Transport Development Council relate
to, or are on account of, -
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(a) The introduction of newer type of vehicles and fast
increasing number of both commercial and personal vehicles in
the country.
(b) Providing adequate compensation to victims of road
accidents without going into longdrawn procedure;
(c) Protecting consumers’ interest in Transport Sector;
(d) Concern for road safety standards, transport of
hazardous chemicals and pollution control;
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(e) Delegation of greater powers to State Transport
Authorities and rationalising the role of public authorities in
certain matters;
(f) The simplification of procedures and policy
liberalisation in the field of Road Transport;
(g) Enhancing penalties for traffic offenders.
4. Therefore, the proposed legislation has been prepared
in the light of the above background. The Bill inter alia
provides for –
(a) modification and amplification of certain definitions
of new type of vehicles ;
(b) simplification of procedure for grant of driving
licences;
(c) putting restrictions on the alteration of vehicles;
(d) certain exemptions for vehicles running on non-
polluting fuels;
(e) ceilings on individuals or company holdings removed
to curb “benami” holdings;
(f) states authorised to appoint one or more State
Transport Appellate Tribunals;
(g) punitive checks on the use of such components that
do not conform to the prescribed standards by manufactures,
and also stocking / sale by the traders;
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(h) increase in the amount of compensation of the
victims of hit and run cases;
(i) removal of time limit for filling of application by
road accident victims for compensation;
(j) punishment in case of certain offences is made
stringent;
(k) a new pre-determined formula for payment of
compensation to road accident victims on the basis of
age/income, which is more liberal and rational.
5. The Law Commission in its 119th Report had recommended
that every application for a claim be made to the Claims
Tribunal having jurisdiction over the area in which the
accident occurred or to the Claims Tribunal within the local
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limits of whose jurisdiction the claimant resides or carries on
business or within the local limits of whose jurisdiction the
defendant resides, at the option of the claimant. The bill also
makes necessary provision to give effect to the said
recommendation.”
Section 10 has been amended vide Act 54/1994 to the following
effect :
“10. Form and contents of licences to drive.—(1) Every
learner's licence and driving licence, except a driving licence
issued under section 18, shall be in such form and shall
contain such information as may be prescribed by the Central
Government.
(2) A learner's licence or, as the case may be, driving licence
shall also be expressed as entitling the holder to drive a
motor vehicle of one or more of the following classes,
namely:--
(a) motor cycle without gear;
(b) motor cycle with gear;
(c) invalid carriage;
(d) light motor vehicle;
(e) transport vehicle;
(i) road-roller;
(j) motor vehicle of a specified description.”
JUDGMENT
10. Form 4 which was in vogue till 28.3.2001 as prescribed under
Rule 14 of the Central Motor Vehicles Rules, 1989 (hereinafter
referred to as ‘the Rules of 1989’), is extracted hereunder :
“FORM 4
[See Rule 14]
Form of Application for Licence to drive a Motor Vehicle
To, [passport size
Photograph]
THE LICENSING AUTHORITY,
……………………………………..
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I apply for a licence to enable me to drive vehicles of the
following description:-
(a) Motor cycle without gear
(b) Motor cycle with gear
(c) Invalid Carriage
(d) Light Motor Vehicle
(e) Medium Goods Vehicle
(f) Medium Passenger Motor Vehicle
(g) Heavy Goods Vehicle
(h) Heavy Passenger Motor Vehicle
(i) Road roller
(j) Motor Vehicle of the following description.
Particulars to be furnished by the Applicant
1. Name ………………………………
2. Son/wife/daughter of ……………………………….
3.Permanent address ………………………………
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(Proof to be enclosed)
4.Temporary address/ Official address (if any) ………….
5. Date of birth …………………………………….
(Proof to be enclosed)
6. Educational qualification ………………………..
7. Identification mark (1)……………………… (2)
………………………
8. Optional/Blood Group -- RH factor…………………
9. Have you previously held driving licence?……………
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If so, give details.
10. Particulars and date of every conviction
which has been ordered to be endorsed
on any licence held by the applicant….……………..
11. Have you been disqualified for obtaining
a licence to drive? If so, for what reason?...………..
12. Have you been subjected to a driving test as to your fitness
or ability to drive a vehicle in respect of which a licence to
drive is applied for? If so, give the following details :-
Date of test Testing Authority Result of test
(1)
(2)
(3)
13. I enclose three copies of my recent [passport size photographs]
(where laminated card is used, no photographs are required)
… …………………
14. I enclose Learner’s licence No. ………….. dated …………….
issued by Licensing Authority.
15. I enclose the Driving Certificate No. ….…………….dated
…………issued by……………..
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16. I have submitted along with my application for learner’s
licence the written consent of parent / guardian.
17. I have submitted along with the application for learner’s
licence./I enclose the medical fitness certificate.
18. I am exempted from the medical test under rule 6 of the
Central Motor Vehicles Rules , 1989.
19. I am exempted from preliminary test under rule 11 (2) of the
Central Motor Vehicles Rules 1989.
20. I have paid the fee of Rs.
I hereby declare that to the best of my knowledge and belief
the particulars given above are true.
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Note : Strike out whichever is inapplicable.
Date : ……………..
Signature/Thumb impression
of applicant.
Certificate of test of competence to drive
The applicant has passed the test prescribed under rule
15 of the Central Motor Vehicles Rules, 1989. The test was
conducted on (here enter the registration mark and description
of the vehicle)………..…… on (date).
The applicant has failed in the test.
(The details of deficiency to be listed out.)
Date_________________
Signature of Testing Authority
Full name and designation
Two specimen signatures of applicant:
Strike out whichever is inapplicable.”
11. It is apparent from the Form prescribed under Rule 14 till
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28.3.2001, the aforesaid classification of vehicles remained the same
As provided in Section 10(2) of the Act of 1988 for the first time
transport vehicle was inserted w.e.f. 28.3.2001 by deleting the existing
classes, medium passenger and goods vehicle, heavy goods vehicle
and heavy passenger motor vehicles to bring in tune with Section
10(2)(e) to (h). Form 4 has undergone other changes with respect to
item ‘a’ motorcycle without gear which was substituted vide GSR
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684(E) on 5.10.1999 w.e.f. 22.10.1999 and again substituted by GSR
76(E) dated 31.1.2000 w.e.f. 31.1.2000. With aforesaid changes
brought about by notifications in 1989 and 2000 in Section 10(2)(a)
we are not concerned here. Amended Form ‘4’ is extracted hereunder:
“FORM 4
[See Rule 14(1)]
Form of Application for Licence to Drive a Motor Vehicle
To
The Licensing Authority
……………………………… Space for
………………………………
Passport size
photograph
I apply for a licence to enable me to drive vehicles of the
following description:-
(a) Motor cycle without gear
(b) Motor cycle with gear
(c) Invalid carriage
(d) Light Motor vehicle
(e) Transport vehicle
(f) Medium passenger motor vehicle
[*]
(i) Road roller
(j) Motor vehicles of the following description:
JUDGMENT
Particulars to be furnished by Applicant
1.Full Name……………………
2.Son/Wife/Daughter of ………………………… ...........
3.Permanent address ……………………… ……………
(Proof to be enclosed) ………………………… .............
4.Temporary address/ Official address (if any)..................
5.Date of birth………………………… ..
(proof to be enclosed) …..………… ................................
6. Educational qualification .……………………… .......
7. Identification mark(s) 1.……………… ………
2….…………………….
8.Optional
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Blood Group
RH FACTOR
9. Have you previously held driving ……………… ...
Licence? If so, give details.
10. Particulars and date of every……………………… ..
conviction which has been ordered to be
endorsed on any licence held by applicant
11. Have you been disqualified for………………………
obtaining a Licence to drive? If so,
for what reason?
12. Have you been subjected to a driving
test as to your fitness or ability
to drive a vehicle in respect of which
a licence to drive is applied for ?
If so, give the following details. …………………………
Date of test Testing Authority Result of test
1.
2.
13. I enclose 3 copies of my recent (passport size photograph)
(where laminated card is used no photographs are required).
14. I enclose the learner’s Licence No .................. dated
………… issued by Licensing Authority.
15. I enclose the Driving Certificate No. .............
Dated ................ issued by ........................
16. I have submitted along with my application for Learner’s
Licence the written consent of parent/guardian.
17. I have submitted along with the application for learner’s
licence/I enclose the medical fitness certificate.
18. I am exempted from the medical test under rule 6 of the
Central Motor Vehicles Rules, 1989.
19. I am exempted from preliminary test under rule 11(2) of
the Central Motor Vehicles Rules. 1989.
20. I have paid the fee of Rs…………..
I hereby declare that to the best of my knowledge and belief
the particulars given above are true.
* Strike out whichever is inapplicable.
JUDGMENT
Date ................... Signature/Thumb
impression of Applicant
Certificate of test of competence to drive
The applicant has passed the test prescribed under rule 15 of
the Central Motor Vehicles Rules 1989. The test conducted on
(here enter the registration mark and description of the
vehicle)..................................... on (date) …………..
The applicant has failed in the test.
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(The details of the deficiency to be listed out)
Date .................. Signature of Testing Authority
Full name & designation
Two specimen signatures of Applicant:
1.
2.
Strike out whichever is inapplicable.”
12. Thus, as per Amendment of Section 10 vide Act 54 of 1994,
there is deletion of categories of medium goods vehicle, medium
passenger motor vehicle, heavy goods vehicle and heavy passenger
motor vehicle and these have been substituted by the classification
“transport vehicle”. It is pertinent to note here that the definition and
classification of light motor vehicle in the Act remains intact as it
existed. It is also apparent from the Statement of Objects and Reasons
of the Amendment Act No.54 of 1994 that the transport operators and
members of public faced inconvenience because of operation of some
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of the provisions of the Act of 1988. It was intended for simplification
of procedures and policy liberalization and it became necessary due to
introduction of newer type of vehicles and faced increasing numbers
of both personal and commercial vehicles in the country. Hence, it
was intended to modify and amplify certain definitions of new types
of vehicles for simplification of procedure for grant of driving
licences as provided in para 4(a) and (b) of the Statement of Objects
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and Reasons. The question is whether intendment appears not to touch
the classification of light motor vehicle which has to be understood in
the light of the definition in section 2(21) of the Act of 1988 and it
was never intended that the transport vehicles of light motor vehicle
category should be taken out of the purview of the existing
classification of light motor vehicles and the transport vehicles as
inserted in section 10 has to be understood in the light of the
amendment brought about vide deletion of the provisions of medium
goods vehicle, medium passenger motor vehicle, heavy goods vehicle
and heavy passenger motor vehicle. Thus, no change had been
brought about with respect to the transport vehicles of class of light
motor vehicle as defined in section 2(21) of the Act of 1988.
13. To consider further on the issue, certain rules and forms are also
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required to be referred to. Rule 8 provides for minimum educational
th
qualification for driving transport vehicles which is 8 standard.
th
However proviso makes it clear that the qualification of 8 standard
shall not apply in the case of renewal of driving licence to drive a
transport vehicle and/or addition of another class of transport vehicle
to the driving licence already held before the commencement of the
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Motor Vehicles Act, 2007. Rule 8 of the Rules of 1989 inserted on
10.4.2007 is quoted below :
“ 8. Minimum educational qualification for driving transport
vehicles.-- The minimum educational qualification in respect
of an applicant for obtaining a licence to drive a transport
vehicle shall be a pass in the eighth standard:
Provided that the minimum educational qualification
specified in this rule shall not apply in the case of –
(i) renewal of a driving licence to drive a transport
vehicle : or
(ii) addition of another class of transport vehicle to the
driving licence, already held before the commencement
of the Motor Vehicles (Amendment) Rules, 2007.”
14. Earlier Rule 8 was omitted by GSR No.933(E) dated
28.10.1989 w.e.f. 28.10.1989. The Rule has been inserted in the year
2007 and it is provided that Eighth standard qualification will not
apply in the case of addition of another class of transport vehicle to
the driving licence. Thus, it is clear that Rule 8 contemplates addition
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of transport vehicle of other category than the existing one in the
licence. Question arises whether that refers to the addition to light
motor vehicle’s category, and gross vehicle weight or the unladen
weight of vehicle in section 2(21) does not exceed 7500 kgs. would
remain a light motor vehicle. Section 10 of the Act contains the
provisions as to class of vehicles of the transport vehicle and light
motor vehicle separately. The question arises whether the transport
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vehicle insertion in Section 10(2)(e) is confined to the category of
substitution made by deleting existing sections 10(2)(e), (f), (g) and
(h) which were for medium goods vehicle, medium passenger motor
vehicle, heavy goods vehicle and heavy passenger motor vehicle, and
in case “transport vehicle” even of the weight of light motor vehicle is
treated in one category under section 10(2)(e) in that case whether any
purpose would be left behind insertion of Rule 8 again in the year
2007.
15. Rule 16 provides for the Form of driving licence. Same shall
be issued or renewed by licensing authority in Form 6. Rule 16 and
Form 6 are quoted below :
“ 16. Form of driving licence . —(1) Every driving licence
issued or renewed by a licensing authority shall be in Form 6.
(2) Where the licensing authority has the necessary apparatus,
[for the issue of a laminated card type or Smart Card type
driving licence, such card type or Smart Card type driving
licence, as may be specified in the Notification issued by the
concerned State Government or Union Territory
Administration] shall be in Form 7.
JUDGMENT
(3) On and from the date of commencement of this sub-rule,
every driving licence issued or renewed by the licensing
authority shall be in Form 7.
(4) Every International Driving Permit issued by a licensing
authority shall be in Form 6-A and shall be valid for a period
of not more than one year from the date of issue, as the case
may be, or till the validity of the driving licence, whichever is
earlier.
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23
(5) The automobile associations authorised by the State
Government/ Union Territory Administration shall be allowed
to issue International Driving Permit to their own members as
also others subject to counter-signature by competent
authority.”
“FORM 6
[See Rule 16(1)]
(To be printed in book form of the size six centimeters by eight
centimeters)
FORM OF DRIVING LICENCE
Name of the Licence holder………………………..…
Son/wife/daughter of…………………………..
[Passport size
photograph]
Name to be written across the photograph……………….
(Part of the seal and signature Specimen signature/
of the Licencing Authority Thumb impression of
to be on the photograph the holder of the
and part on the driving licence) licence
Signature and designation
of the Licencing Authority
1. Driving Licence Number …………………..
2. Date of issue …………………..
3. Name …………………...
4. Son /Wife/ Daughter of …………………..
5. Temporary address/ official …………………..
address (if any)
6. Permanent address …………………..
JUDGMENT
7. Date of Birth …………………..
8. Educational Qualifications ………………….
9. Optional ………………….
Blood Group
RH Factor
10. The holder of this licence is licenced
to drive throughout India vehicles of
the following description:-
Motor Cycle without gear
Motor Cycle with gear
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24
Invalid Carriage
Light Motor Vehicle
[Transport vehicle]
Medium passenger motor vehicle
11. A Motor vehicle of the following description :
The licence to drive a motor The licence to drive
vehicle other than transport transport vehicle is
vehicle is valid valid from …. to…..
from ……. to………
Name and designation of Signature and designation
the Authority who of the Licencing Authority
conducted the driving test.
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.
Space for addition of other classes of vehicles
Number…………………… Date……………
Also authorized to drive the following class or description of
motor vehicles:-
Name and designation Signature and designation
of the Authority of Licencing Authority
who conducted
the driving test.
Dated:………….. Signature and designation
of the Licencing Authority
Space for renewal of driving licence
JUDGMENT
The licence to drive motor The licence to drive
vehicles other than transport transport vehicles
vehicles is hereby renewed. is hereby renewed
From…….. to ………… From…………to…..……
Signature of Licencing Signature of Licencing
Authority Authority
From…………to…………. From…………to…………
Page 24
| 25<br>Signature of Licencing Signature of Licencing Authority<br>Authority<br>From………….to……………<br>Signature of Licencing Authority<br>Space for endorsement by Court | ||
|---|---|---|
| Date<br>Section and Rule<br>Fine or other punishment | ||
| Space for endorsement by licensing authority | ||
| Date<br>Proceedings number and date<br>Disqualification period | ||
| It is pertinent to mention that in the Form light motor vehicle<br>and transport vehicleJ areU sepDaratGelyM givEen. NT<br>16. Rule 17 of the Rules deals with the additional driving licence.<br>Same has to be applied for in Form 8. Rule 17 and Form 8 read thus :<br>“17. Addition to driving licence.-- (1) An application for<br>addition of another class of description of motor vehicle to the<br>driving licence shall be made in Form 8 to the licensing<br>authority and shall be accompanied by—<br>(a) an effective learner’s licence and driving licence held by the<br>applicant; |
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26
(b) in the case of an application for addition of a transport
vehicle, the driving certificate in Form 5;
(c) [ *]
(d) appropriate fee as specified in Rule 32.
(2) The provisions of sub-section (1), sub-section (3) and sub-
section (4) of Section 9 shall, insofar as may be, apply in
relation to an application under sub-section (1) as they apply in
relation to an application for the grant of a driving licence.”
Form 8 as provided in Rule 17(1) of the Rules reads as under :
“FORM 8
[See Rule 17(1)]
APPLICATION FOR THE ADDITION OF A NEW CLASS OF
VEHICLE TO A DRIVING LICENCE
To
The Licensing Authority,
…………………………
I, Shri/Smt./ Kumari…... hereby apply for the addition of the
following class/classes of motor vehicles to the attached licence:-
(a) Motor cycle without gear
(b) Motor cycle with gear
(c) Invalid carriages,
(d) Light motor vehicles,
(e) Transport vehicle
(f) Medium passenger motor vehicles
(g) x x x
(h) x x x
(i) Road rollers,
(j) Motor vehicle of the following description :
I enclose,
JUDGMENT
(a) a Medical Certificate in Form 1-A
(b) Learner’s licence in Form 3,
(c) Driving licence in Form 6/7,
I hereby apply for the addition of the following :
(d) Driving Certificate in Form 5 if the application is to drive a
transport vehicle,
(e) I have paid the fee of Rs. … … … … … … … … … ..
Dated: …….. Signature or thumb-impression
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of the Applicant
CERTIFICATE OF TEST OF COMPETENCE TO DRIVE
The applicant has passed/failed in the test specified in Rule 15
of the Central Motor Vehicles Rules, 1989. The test was
conducted on a ….(here enter description of vehicles) on date.…
Signature of Testing Authority
Name & Designation”
17. Form 8 also separately provide the light motor vehicle and
transport vehicle. Question arises whether in Forms 4, 5 and 8,
transport vehicle has to be understood for the categories of vehicles
for which substitution has been made in section 10(2) by deleting the
existing provisions of section 10(2)(e), (f), (g) and (h). However the
form still contains the provision with respect to “medium passenger
motor vehicles”, notwithstanding the insertion of the changed
classification of the vehicles in section 10(2) of the Act or it may be
printer’s omission to delete ?
JUDGMENT
18. Rule 34 has also been referred to which deals with the trade
certificate. Rule 34(2) provides that separate application shall be made
for the classes of vehicles prescribed therein. Rule 34 is quoted below:
“ 34. Trade certificate.-- (1) An application for the grant or
renewal of a trade certificate shall be made in Form 16 and
shall be accompanied by the appropriate fee as specified in Rule
81.
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28
(2) Separate applications shall be made for each of the following
classes of vehicles, namely:—
(a) motorcycle;
(b) invalid carriage;
(c) light motor vehicle;
(d) medium passenger motor vehicle;
(e) medium goods vehicle;
(f) heavy passenger motor vehicle;
(g) heavy goods vehicle;
(h) any other motor vehicle of a specified description.”
Rule 34 also makes a distinction between light motor vehicle,
medium passenger motor vehicle, medium goods vehicle, heavy
passenger motor vehicle and heavy goods vehicle. As per Rule 126 of
the Rules, proto-type of every motor vehicle is subject to test by the
Vehicle Research & Development Establishment of the Ministry of
Defence of the Government of India or Automotive Research
Association of India. Testing Agency has to conduct test as provided
in Rule 126A to verify whether these vehicles conform to the
JUDGMENT
provisions of the Rules made under section 110 of the Act. All the
relevant information has to be inserted as per section 41 of the Act in
the registration particulars as may be prescribed by the Central
Government. Application for registration of motor vehicle has to be
made in Form 20. Class of vehicle, gross vehicle weight as well as
unladen weight are to be mentioned.
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29
19. Rule 31 of the Rules contains a syllabus for imparting
instructions in driving of motor vehicles in schools or establishments.
That syllabus is divided in parts A to K. Part A deals with driving
theory-1. B- Traffic education-I. C-light vehicles driving practice. D-
Vehicle mechanism and repairs. E-Medium and heavy vehicle driving.
F- Traffic education-II. G- Public relations for drivers. H-Heavy
vehicle driving practice. I-Fire hazards. J- Vehicle maintenance. K-
First-aid.
20. It is apparent from the syllabus that there is a separate syllabus
for light motor vehicle and for medium and heavy vehicle driving
practice. No separate syllabus has been provided for transport
vehicles. They are included in the aforesaid categories. Thus, it
appears that as per the weight of the vehicles, the syllabus has been
JUDGMENT
provided and different teaching is prescribed as per different weights
of the vehicles. A driving licence has to be issued as per Rule 16 in
Form 6. Form 6 also separately provides for light motor vehicle,
transport vehicle.
21. The Central Government, inter alia, has the power to frame the
rules provided under section 27 of the Act, regarding minimum
qualification, regarding forms and contents of the licences referred to
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30
in sub-section (1) of section 10 and providing for authority to grant
licences and other matters as provided in section 27. State
Government is enjoined to maintain a register of motor vehicles under
Rule 75 as provided in Form 41 which includes gross vehicle weight,
unladen weight etc. Thus it is clear that the scheme of the Act, Rules
and the Forms emphasise the gross vehicle weight and unladen weight
which is required to be mentioned specifically in the State registration
particulars etc. so as to ascertain the class of vehicle whether it is
light, medium or heavy etc.
22. In Skandia Insurance Co. Ltd. v. Kokilaben Chandravadan &
Ors . (1987) 2 SCC 654, it was held that in order to consider the
intention of the Legislature in the course of interpretation, motive and
philosophy of the relevant provisions keeping in mind the goals to be
JUDGMENT
achieved by enacting the same, has to be taken into consideration. It
was observed thus :
“12. The defence built on the exclusion clause cannot succeed
for three reasons, viz.:
(1) On a true interpretation of the relevant clause
which interpretation is at peace with the
conscience of Section 96, the condition excluding
driving by a person not duly licensed is not
absolute and the promisor is absolved once it is
shown that he has done everything in his power
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31
to keep, honour and fulfil the promise and he
himself is not guilty of a deliberate breach.
(2) Even if it is treated as an absolute promise, there
is substantial compliance therewith upon an
express or implied mandate being given to the
licensed driver not to allow the vehicle to be left
unattended so that it happens to be driven by an
unlicensed driver.
( 3 ) The exclusion clause has to be “ read down ” in
order that it is not at war with the “ main purpose ” of
the provisions enacted for the protection of victims of
accidents so that the promisor is exculpated when he
does everything in his power to keep the promise.
13. In order to divine the intention of the legislature in the
course of interpretation of the relevant provisions there can
scarcely be a better test than that of probing into the motive
and philosophy of the relevant provisions keeping in mind the
goals to be achieved by enacting the same. Ordinarily it is not
the concern of the legislature whether the owner of the vehicle
insures his vehicle or not. If the vehicle is not insured any legal
liability arising on account of third party risk will have to be
borne by the owner of the vehicle. Why then has the legislature
insisted on a person using a motor vehicle in a public place to
insure against third party risk by enacting Section 94? Surely
the obligation has not been imposed in order to promote the
business of the insurers engaged in the business of automobile
insurance. The provision has been inserted in order to protect
the members of the community travelling in vehicles or using
the roads from the risk attendant upon the user of motor
vehicles on the roads. The law may provide for compensation
to victims of the accidents who sustain injuries in the course of
an automobile accident or compensation to the dependants of
the victims in the case of a fatal accident. However, such
protection would remain a protection on paper unless there is a
guarantee that the compensation awarded by the courts would
be recoverable from the persons held liable for the
consequences of the accident. A court can only pass an award
or a decree. It cannot ensure that such an award or decree
results in the amount awarded being actually recovered, from
the person held liable who may not have the resources. The
exercise undertaken by the law courts would then be an
exercise in futility. And the outcome of the legal proceedings
which by the very nature of things involve the time cost and
JUDGMENT
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32
money cost invested from the scarce resources of the
community would make a mockery of the injured victims, or
the dependants of the deceased victim of the accident, who
themselves are obliged to incur not inconsiderable expenditure
of time, money and energy in litigation. To overcome this ugly
situation the legislature has made it obligatory that no motor
vehicle shall be used unless a third party insurance is in force.
To use the vehicle without the requisite third party insurance
being in force is a penal offence (Section 94 of the Motor
Vehicles Act). The legislature was also faced with another
problem. The insurance policy might provide for liability
walled in by conditions which may be specified in the contract
of policy. In order to make the protection real, the legislature
has also provided that the judgment obtained shall not be
defeated by the incorporation of exclusion clauses other than
those authorised by Section 96 and by providing that except
and save to the extent permitted by Section 96 it will be the
obligation of the insurance company to satisfy the judgment
obtained against the persons insured against third party risk
(vide Section 96). In other words, the legislature has insisted
and made it incumbent on the user of a motor vehicle to be
armed with an insurance policy covering third party risks
which is in conformity with the provisions enacted by the
legislature. It is so provided in order to ensure that the injured
victims of automobile accidents or the dependants of the
victims of fatal accidents are really compensated in terms of
money and not in terms of promise. Such a benign provision
enacted by the legislature having regard to the fact that in the
modern age the use of motor vehicles notwithstanding the
attendant hazards, has become an inescapable fact of life, has
to be interpreted in a meaningful manner which serves rather
than defeats the purpose of the legislation. The provision has
therefore to be interpreted in the twilight of the aforesaid
perspective.”
JUDGMENT
14. Section 96(2)( b )( ii ) extends immunity to the insurance
company if a breach is committed of the condition excluding
driving by a named person or persons or by any person who is
not fully licensed , or by any person who has been disqualified
for holding or obtaining a driving licence during the period of
disqualification. The expression “breach” is of great
significance. The dictionary meaning of “breach” is
“infringement or violation of a promise or obligation” (See
Collins English Dictionary) . It is therefore abundantly clear
that the insurer will have to establish that the insured is guilty
of an infringement or violation of a promise that a person who
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33
is duly licensed will have to be in charge of the vehicle. The
very concept of infringement or violation of the promise that
the expression “breach” carries within itself induces an
inference that the violation or infringement on the part of the
promisor must be a wilful infringement or violation. If the
insured is not at all at fault and has not done anything he
should not have done or is not amiss in any respect how can it
be conscientiously posited that he has committed a breach? It
is only when the insured himself places the vehicle in charge of
a person who does not hold a driving licence, that it can be said
that he is “guilty” of the breach of the promise that the vehicle
will be driven by a licensed driver. It must be established by
the insurance company that the breach was on the part of the
insured and that it was the insured who was guilty of violating
the promise or infringement of the contract. Unless the insured
is at fault and is guilty of a breach the insurer cannot escape
from the obligation to indemnify the insured and successfully
contend that he is exonerated having regard to the fact that the
promisor (the insured) committed a breach of his promise. Not
when some mishap occurs by some mischance. When the
insured has done everything within his power inasmuch as he
has engaged a licensed driver and has placed the vehicle in
charge of a licensed driver, with the express or implied
mandate to drive himself it cannot be said that the insured is
guilty of any breach. And it is only in case of a breach or a
violation of the promise on the part of the insured that the
insurer can hide under the umbrella of the exclusion clause. In
a way the question is as to whether the promise made by the
insured is an absolute promise or whether he is exculpated on
the basis of some legal doctrine. The discussion made in para
239 of Breach of Contract by Carter (1984 Edn.) under the
head Proof of Breach, gives an inkling of this dimension of the
matter. In the present case even if the promise were to be
treated as an absolute promise the grounds for exculpation can
be found from Section 84 of the Act which reads thus:
JUDGMENT
“84. Stationary vehicles— No person driving or in charge
of a motor vehicle shall cause or allow the vehicle to
remain stationary in any public place, unless there is in
the driver’s seat a person duly licensed to drive the
vehicle or unless the mechanism has been stopped and a
brake or brakes applied or such other measure taken as
to ensure that the vehicle cannot accidentally be put in
motion in the absence of the driver.”
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34
In view of this provision apart from the implied mandate to the
licensed driver not to place an unlicensed person in charge of
the vehicle, there is also a statutory obligation on the said
person not to leave the vehicle unattended and not to place it in
charge of an unlicensed driver. What is prohibited by law must
be treated as a mandate to the employee and should be
considered sufficient in the eye of law for excusing non-
compliance with the conditions. It cannot therefore in any case
be considered as a breach on the part of the insured. To
construe the provision differently would be to rewrite the
provision by engrafting a rider to the effect that in the event of
the motor vehicle happening to be driven by an unlicensed
person, regardless of the circumstances in which such a
contingency occurs, the insured will not be liable under the
contract of insurance. It needs to be emphasised that it is not
the contract of insurance which is being interpreted. It is the
statutory provision defining the conditions of exemption which
is being interpreted. These must therefore be interpreted in the
spirit in which the same have been enacted accompanied by an
anxiety to ensure that the protection is not nullified by the
backward looking interpretation which serves to defeat the
provision rather than to fulfil its life-aim. To do otherwise
would amount to nullifying the benevolent provision by
reading it with a non-benevolent eye and with a mind not
tuned to the purpose and philosophy of the legislation without
being informed of the true goals sought to be achieved. What
the legislature has given, the Court cannot deprive of by way of
an exercise in interpretation when the view which renders the
provision potent is equally plausible as the one which renders
the provision impotent. In fact it appears that the former view
is more plausible apart from the fact that it is more desirable.
When the option is between opting for a view which will relieve
the distress and misery of the victims of accidents or their
dependants on the one hand and the equally plausible view
which will reduce the profitability of the insurer in regard to
the occupational hazard undertaken by him by way of business
activity, there is hardly any choice. The Court cannot but opt
for the former view. Even if one were to make a strictly
doctrinaire approach, the very same conclusion would emerge
in obeisance to the doctrine of “reading down” the exclusion
clause in the light of the “ main purpose ” of the provision so
that the “exclusion clause” does not cross swords with the
“main purpose” highlighted earlier. The effort must be to
harmonize the two instead of allowing the exclusion clause to
snipe successfully at the main purpose. This theory which
JUDGMENT
Page 34
35
needs no support is supported by Carter’s “ Breach of
Contract” vide paragraph 251. To quote:
“Notwithstanding the general ability of contracting
parties to agree to exclusion clauses which operate to
define obligations there exists a rule, usually referred to
as the “main purpose rule”, which may limit the
application of wide exclusion clauses defining a
promisor’s contractual obligations. For example, in
Glynn v. Margetson & Co (1893 AC 351, 357 , Lord
Halsbury, L.C. stated:
It seems to me that in construing this document,
which is a contract of carriage between the
parties, one must in the first instance look at the
whole instrument and not at one part of it only.
Looking at the whole instrument, and seeing
what one must regard ... as its main purpose, one
must reject words, indeed whole provisions, if
they are inconsistent with what one assumes to
be the main purpose of the contract.’
Although this rule played a role in the development of the
doctrine of fundamental breach, the continued validity of the
rule was acknowledged when the doctrine was rejected by the
House of Lords in Suissee Atlantique Societe d’ Armement
Maritime S.A. v. N.V. Rotterdamsche Kolen Centrale (1967) 1 AC
361, 393, 412-413, 427-428, 430 . Accordingly , wide exclusion
clauses will be read down to the extent to which they are
inconsistent with the main purpose , or object of the contract.
JUDGMENT
(emphasis supplied)”
23. A 3-Judge Bench of this Court in Sohan Lal Passi v. P. Sesh
Reddy & Ors . (1996) 5 SCC 21 examined the correctness of the
aforesaid view in Skandia ’s case (supra) and has laid down thus :
“ 12. … According to us, Section 96(2)( b )( ii ) should not be
interpreted in a technical manner. Sub-section (2) of Section 96
only enables the insurance company to defend itself in respect
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of the liability to pay compensation on any of the grounds
mentioned in sub-section (2) including that there has been a
contravention of the condition excluding the vehicle being
driven by any person who is not duly licensed. This bar on the
face of it operates on the person insured. If the person who has
got the vehicle insured has allowed the vehicle to be driven by a
person who is not duly licensed then only that clause shall be
attracted. In a case where the person who has got insured the
vehicle with the insurance company, has appointed a duly
licensed driver and if the accident takes place when the vehicle
is being driven by a person not duly licensed on the basis of the
authority of the driver duly authorised to drive the vehicle
whether the insurance company in that event shall be absolved
from its liability? The expression ‘breach’ occurring in Section
96(2)( b ) means infringement or violation of a promise or
obligation. As such the insurance company will have to
establish that the insured was guilty of an infringement or
violation of a promise. The insurer has also to satisfy the
Tribunal or the Court that such violation or infringement on
the part of the insured was wilful. If the insured has taken all
precautions by appointing a duly licensed driver to drive the
vehicle in question and it has not been established that it was
the insured who allowed the vehicle to be driven by a person
not duly licensed, then the insurance company cannot
repudiate its statutory liability under sub-section (1) of Section
96…..”
24. It is relevant to note the various decisions rendered by this
Court. In Ashok Gangadhar Maratha v. Oriental Insurance Co. Ltd.
JUDGMENT
(1999) 6 SCC 620, this Court considered the definition of light motor
vehicle and held thus :
| efinition of "light motor vehicle" as given in clause | |||||
|---|---|---|---|---|---|
| (21) of | Section 2 | of the Act can apply only to a "light goods | |||
| vehicle" or a "light transport vehicle". A "light motor vehicle" | |||||
| otherwise has to be covered by the definition of "motor | |||||
| vehicle" or "vehicle" as given in clause (28) of | Section 2 | of the | |||
| Act. A light motor vehicle cannot always mean a light goods | |||||
| carriage. Light motor vehicle can be a non-transport vehicle as | |||||
| well.” |
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25. In Oriental Insurance Co. Ltd. v. Zaharulnisha & Ors. (2008)
12 SCC 385 this Court has referred to the decision in National
Insurance Co. Ltd. v. Swaran Singh (2004) 3 SCC 297 to the effect
that if a person has been given a licence for a particular type of
vehicle he cannot be said to have no licence for driving another type
of vehicle which is of the same category but of a different type. As for
example when a person is granted a licence for driving a light motor
vehicle he can drive either a car or a jeep and it is not necessary that
he must have driving licence both for car and jeep separately. This
Court has laid down that since the driver was having licence to drive
heavy motor vehicle but at the time of accident was driving a scooter
which is a totally different class of vehicle, the act was held to be in
violation of Section 10(2) of the MV Act. The relevant provisions read
JUDGMENT
thus :
“18. A three-Judge Bench of this Court in National
Insurance Co. Ltd. v. Swaran Singh (2004) 3 SCC 297 has
extensively dealt with the meaning, application and
interpretation of various provisions, including Sections 3(2),
4(3), 10(2) and 149 of the MV Act. In para 47 of the judgment,
the learned Judges have held that if a person has been given a
licence for a particular type of vehicle as specified therein, he
cannot be said to have no licence for driving another type of
vehicle which is of the same category but of different type. As
for example, when a person is granted a licence for driving a
light motor vehicle he can drive either a car or a jeep and it is
not necessary that he must have driving licence both for car
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38
and jeep separately. In para 48, it is held as under: (SCC pp.
324-25)
“ 48 . Furthermore, the insurance company with a view
to avoid its liabilities is not only required to show that
the conditions laid down under Section 149(2)( a ) or ( b )
are satisfied but is further required to establish that
there has been a breach on the part of the insured. By
reason of the provisions contained in the 1988 Act, a
more extensive remedy has been conferred upon those
who have obtained judgment against the user of a
vehicle and after a certificate of insurance is delivered
in terms of Section 147(3). After a third party has
obtained a judgment against any person insured by the
policy in respect of a liability required to be covered by
Section 145, the same must be satisfied by the insurer,
notwithstanding that the insurer may be entitled to
avoid or to cancel the policy or may in fact have done
so. The same obligation applies in respect of a judgment
against a person not insured by the policy in respect of
such a liability, but who would have been covered if the
policy had covered the liability of all persons, except
that in respect of liability for death or bodily injury.”
19. The judgment (in Swaran Singh case ) proceeds to hold
that under the MV Act, holding of a valid driving licence is one
of the conditions of the contract of insurance. Driving of a
vehicle without a valid licence is an offence. However, the
question herein is whether a third party involved in an
accident is entitled to the amount of compensation granted by
the Motor Accidents Claims Tribunal although the driver of
the vehicle at the relevant time might not have had a valid
driving licence but would be entitled to recover the same from
the owner or driver thereof. It is trite that where the insurers,
relying upon the provisions of violation of law by the assured,
take an exception to pay the assured or a third party, they must
prove a wilful violation of the law by the assured. In some
cases, violation of criminal law, particularly violation of the
provisions of the MV Act, may result in absolving the insurers
but, the same may not necessarily hold good in the case of a
third party. In any event, the exception applies only to acts
done intentionally or “so recklessly as to denote that the
assured did not care what the consequences of his act might
be”. The provisions of sub-sections (4) and (5) of Section 149 of
the MV Act may be considered as to the liability of the insurer
to satisfy the decree at the first instance. The liability of the
JUDGMENT
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39
insurer is a statutory one. The liability of the insurer to satisfy
the decree passed in favour of a third party is also statutory.
20. The learned Judges having considered the entire
material and relevant provisions of the MV Act and conflict of
decisions of various High Courts and this Court on the
question of defences available to the insurance companies in
defending the claims of the victims of the accident arising due
to the harsh and negligent driving of the vehicle which is
insured with the insurance companies, proceeded to record the
following summary of findings: ( Swaran Singh case , SCC pp.
341-42, para 110)
“110. ( i ) Chapter XI of the Motor Vehicles Act, 1988
providing compulsory insurance of vehicles against
third-party risks is a social welfare legislation to extend
relief by compensation to victims of accidents caused by
use of motor vehicles. The provisions of compulsory
insurance coverage of all vehicles are with this
paramount object and the provisions of the Act have to
be so interpreted as to effectuate the said object.
(ii) An insurer is entitled to raise a defence in a claim
petition filed under Section 163-A or Section 166 of the
Motor Vehicles Act, 1988 inter alia in terms of Section
149(2)( a )( ii ) of the said Act.
(iii) The breach of policy condition e.g. disqualification of
the driver or invalid driving licence of the driver, as
contained in sub-section (2)( a )( ii ) of Section 149, has to
be proved to have been committed by the insured for
avoiding liability by the insurer. Mere absence, fake or
invalid driving licence or disqualification of the driver
for driving at the relevant time, are not in themselves
defences available to the insurer against either the
insured or the third parties. To avoid its liability
towards the insured, the insurer has to prove that the
insured was guilty of negligence and failed to exercise
reasonable care in the matter of fulfilling the condition
of the policy regarding use of vehicles by duly licensed
driver or one who was not disqualified to drive at the
relevant time.
JUDGMENT
(iv) Insurance companies, however, with a view to avoid
their liability must not only establish the available
defence(s) raised in the said proceedings but must also
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40
establish ‘breach’ on the part of the owner of the
vehicle; the burden of proof wherefor would be on
them.
( v ) The court cannot lay down any criteria as to how the
said burden would be discharged, inasmuch as the same
would depend upon the facts and circumstances of each
case.
( vi ) Even where the insurer is able to prove breach on
the part of the insured concerning the policy condition
regarding holding of a valid licence by the driver or his
qualification to drive during the relevant period, the
insurer would not be allowed to avoid its liability
towards the insured unless the said breach or breaches
on the condition of driving licence is/are so fundamental
as are found to have contributed to the cause of the
accident. The Tribunals in interpreting the policy
conditions would apply “the rule of main purpose” and
the concept of “fundamental breach” to allow defences
available to the insured under Section 149(2) of the Act.
( vii ) The question as to whether the owner has taken
reasonable care to find out as to whether the driving
licence produced by the driver, (a fake one or
otherwise), does not fulfil the requirements of law or not
will have to be determined in each case.
( viii ) If a vehicle at the time of accident was driven by a
person having a learner’s licence, the insurance
companies would be liable to satisfy the decree.
JUDGMENT
( ix ) The Claims Tribunal constituted under Section 165
read with Section 168 is empowered to adjudicate all
claims in respect of the accidents involving death or of
bodily injury or damage to property of third party
arising in use of motor vehicle. The said power of the
Tribunal is not restricted to decide the claims inter se
between the claimant or claimants on one side and the
insured, insurer and driver on the other. In the course
of adjudicating the claim for compensation and to
decide the availability of defence or defences to the
insurer, the Tribunal has necessarily the power and
jurisdiction to decide disputes inter se between the
insurer and the insured. The decision rendered on the
claims and disputes inter se between the insurer and
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41
insured in the course of adjudication of claim for
compensation by the claimants and the award made
thereon is enforceable and executable in the same
manner as provided in Section 174 of the Act for
enforcement and execution of the award in favour of the
claimants.
( x ) Where on adjudication of the claim under the Act
the Tribunal arrives at a conclusion that the insurer has
satisfactorily proved its defence in accordance with the
provisions of Section 149(2) read with sub-section (7), as
interpreted by this Court above, the Tribunal can direct
that the insurer is liable to be reimbursed by the insured
for the compensation and other amounts which it has
been compelled to pay to the third party under the
award of the Tribunal. Such determination of claim by
the Tribunal will be enforceable and the money found
due to the insurer from the insured will be recoverable
on a certificate issued by the Tribunal to the Collector in
the same manner under Section 174 of the Act as
arrears of land revenue. The certificate will be issued
for the recovery as arrears of land revenue only if, as
required by sub-section (3) of Section 168 of the Act the
insured fails to deposit the amount awarded in favour of
the insurer within thirty days from the date of
announcement of the award by the Tribunal.
( xi ) The provisions contained in sub-section (4) with the
proviso thereunder and sub-section (5) which are
intended to cover specified contingencies mentioned
therein to enable the insurer to recover the amount paid
under the contract of insurance on behalf of the insured
can be taken recourse to by the Tribunal and be
extended to the claims and defences of the insurer
against the insured by relegating them to the remedy
before regular court in cases where on given facts and
circumstances adjudication of their claims inter se
might delay the adjudication of the claims of the
victims.”
JUDGMENT
21. In the light of the above settled proposition of law, the
appellant Insurance Company cannot be held liable to pay the
amount of compensation to the claimants for the cause of death
of Shukurullah in road accident which had occurred due to
rash and negligent driving of scooter by Ram Surat who
admittedly had no valid and effective licence to drive the
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42
vehicle on the day of accident. The scooterist was possessing a
driving licence of driving HMV and he was driving a totally
different class of vehicle, which act of his is in violation of
Section 10(2) of the MV Act.”
26. In New India Assurance Co. Ltd. v. Prabhu Lal (2008) 1 SCC
696 this Court considered the question of driving a transport vehicle
by a driver having valid licence to ply only light motor vehicle, no
endorsement was made on the licence enabling the driver to drive
transport vehicle. A two Judge Bench of this Court has laid down that
the owner of the said vehicle cannot claim indemnification in such
circumstances from the insurer. It has been held that goods carrier will
be a transport vehicle. The accident took place on 17.4.1998. The
vehicle involved was Tata 709. The District Forum held it to be a
goods carrier and covered by transport vehicle whereas the State
Commission held that it was a light motor vehicle relying on the gross
JUDGMENT
weight of the vehicle. This Court laid down that the said Commission
was wrong in reversing the finding of the District Forum. This Court
has considered the question thus :
“38. We find considerable force in the submission of the
learned counsel for the Insurance Company. We also find that
the District Forum considered the question in its proper
perspective and held that the vehicle driven by Ram Narain
was covered by the category of transport vehicle under Clause
(47) of Section 2 of the Act. Section 3, therefore, required the
driver to have an endorsement which would entitle him to ply
such vehicle. It is not even the case of the complainant that
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43
there was such endorsement and Ram Narain was allowed to
ply transport vehicle. On the contrary, the case of the
complainant was that it was Mohd. Julfikar who was driving
the vehicle. To us, therefore, the District Forum was right in
holding that Ram Narain could not have driven the vehicle in
question.
39. The learned counsel for the complainant, however, heavily
relied upon Ashok Gangadhar (1999) 6 SCC 620. In that case,
the appellant was the owner of a truck, light motor vehicle,
which was insured with the respondent Insurance Company.
The vehicle met with an accident and a claim was lodged by
the complainant before the Consumer Commission. It was
contended by the Insurance Company that the truck was a
goods carriage or a transport vehicle and since the driver of
the truck was holding a driving licence issued in Form 6 to
drive light motor vehicle only, he was not authorised to drive
transport vehicle as there was no endorsement on his driving
licence authorising him to drive such transport vehicle. The
aggrieved complainant approached this Court. Allowing the
appeal and setting aside the order passed by the Commission,
this Court held that the driver of the vehicle was holding a
valid driving licence for driving a light motor vehicle and there
was no material on record to show that he was disqualified
from holding an effective valid licence at the time of accident.
In view of those facts, the Court held that the policy did not
insist on the driver to have a licence to drive a transport
vehicle by obtaining a specific endorsement. Considering the
definition of “light motor vehicle” as given in Clause (21) of
Section 2 of the Act, this Court held that such light motor
vehicle (LMV) cannot always mean a light goods carriage. A
light motor vehicle (LMV) can be a non-transport vehicle as
well. The Court proceeded to observe that since there was
neither a pleading nor a permit produced on record, the
vehicle remained as a light motor vehicle. And though it can be
said to have been designed to be used as a transport vehicle or
a goods carriage, it could not be so held on account of statutory
prohibition contained in Section 66 of the Act to be a transport
vehicle. It was, therefore, held that the Commission was not
right in rejecting the claim of the claimant. Accordingly this
Court set aside the order passed by the Commission and
directed the Insurance Company to pay compensation to the
complainant.
JUDGMENT
40. It is no doubt true that in Ashok Gangadhar (supra) in
spite of the fact that the driver was holding valid driving
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44
licence to ply light motor vehicle (LMV), this Court upheld the
claim and ordered the Insurance Company to pay
compensation. But, in our considered opinion, the learned
counsel for the Insurance Company is right in submitting that
it was because of the fact that there was neither pleading nor
proof as regards the permit issued by the Transport Authority.
In absence of pleading and proof, this Court held that, it could
not be said that the driver had no valid licence to ply the
vehicle which met with an accident and he could not be
deprived of the compensation. This is clear if one reads para 11
of the judgment, which reads thus: (SCC p. 626)
“ 11 . To reiterate, since a vehicle cannot be used as a
transport vehicle on a public road unless there is a permit
issued by the Regional Transport Authority for that
purpose and since in the instant case there is neither a
pleading to that effect by any party nor is there any permit
on record, the vehicle in question would remain a light
motor vehicle . The respondent also does not say that any
permit was granted to the appellant for plying the
vehicle as a transport vehicle under Section 66 of the
Act. Moreover, on the date of the accident, the vehicle
was not carrying any goods and though it could be said
to have been designed to be used as a transport vehicle
or a goods carrier, it cannot be so held on account of the
statutory prohibition contained in Section 66 of the
Act.”
(emphasis supplied)
41. In our judgment, Ashok Gangadhar (supra) did not lay
down that the driver holding licence to drive a light motor
vehicle need not have an endorsement to drive transport
vehicle and yet he can drive such vehicle. It was on the peculiar
facts of the case, as the Insurance Company neither pleaded
nor proved that the vehicle was transport vehicle by placing on
record the permit issued by the Transport Authority that the
Insurance Company was held liable.
JUDGMENT
42. In the present case, all the facts were before the District
Forum. It considered the assertion of the complainant and
defence of the Insurance Company in the light of the relevant
documentary evidence and held that it was established that the
vehicle which met with an accident was a “transport vehicle”.
Ram Narain was having a licence to drive light motor vehicle
only and there was no endorsement as required by Section 3 of
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45
the Act read with Rule 16 of the Rules and Form 6. In view of
necessary documents on record, the Insurance Company was
right in submitting that Ashok Gangadhar (supra) does not
apply to the case on hand and the Insurance Company was not
liable.”
27. In New India Assurance Co. Ltd. v. Roshanben Rahemansha
Fakir & Anr . (2008) 8 SCC 253 the driver was holder of a licence to
drive a three-wheeler. This Court noted that the licence was not meant
to be used to drive a transport vehicle. The vehicle involved was an
autorickshaw delivery van and was a goods carrier. Contention was
raised that the driver of the vehicle was not holder of a legal and valid
licence. Question arose whether driver was holding a licence to drive
a transport vehicle. This Court held thus :
“10. Section 10 of the Act provides for classes of the driving
licence. Different classes of vehicle have been defined in
different provisions of the Motor Vehicles Act. The “transport
vehicle” is defined in Section 2(47) of the Act to mean a public
service vehicle, a goods carriage, an educational institution bus
or a private service vehicle. We have noticed hereinbefore the
provisions of sub-section (4) of Section 41. We have also
noticed the notification issued by the Central Government in
this behalf. The said notification clearly postulates that a
three-wheeled vehicle for transport of passengers or goods
comes within the purview of Class 5 of the Table appended
thereto. The licence granted in favour of the said Salim
Amadbhai goes to show that the same was granted for a vehicle
other than the transport vehicle. It was valid from 13.5.2004 to
12.5.2024. Section 14(2)(a) provides that a driving licence
issued or renewed under the Act shall, in case of a licence to
drive a transport vehicle will be effective for a period of three
years whereas in the case of any other vehicle it can be issued
or renewed for a period of 20 years from the date of issuance or
JUDGMENT
Page 45
46
renewal. The fact that the licence was granted for a period of
20 years, thus, clearly shows that Salim Amadbhai, driver of
the vehicle, was not granted a valid driving licence for driving
a transport vehicle.
x x x x x
13. From the discussions made hereinbefore, it is evident
that the driver of the vehicle was not holding an effective
licence. Possession of an effective licence is necessary in terms
of Section 10 of the Motor Vehicles Act.”
28. In National Insurance Co. Ltd. v. Annappa Irappa Nesaria
alias Nesaragi & Ors . (2008) 3 SCC 464, a Division Bench of this
Court has considered the question with respect to an accident which
took place on 9.12.1999 involving a Matador van, a “goods carriage”
vehicle. The driver was holding a licence to drive light motor vehicle.
Submission was raised before this Court that “light motor vehicle”
cannot be a transport vehicle. Forms 4 and 6 were also referred along
with Rules 14 and 16 of the 1989 Rules. After referring to Form 4 as it
JUDGMENT
has been amended w.e.f. 28.3.2001, this Court has held that transport
vehicle has been substituted for “medium goods vehicle” and “heavy
goods vehicle”, and continued at the relevant time, to cover both
“light passenger carriage vehicle” and “light goods carriage vehicle”.
The driver who had a valid licence to drive a light motor vehicle,
therefore, was authorized to drive a light goods vehicle as well. This
Court has laid down thus :
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47
“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”. The light motor
vehicle continued, at the relevant point of time to cover both
“light passenger carriage vehicle” and “light goods carriage
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.
21. The amendments carried out in the Rules having a
prospective operation, the licence held by the driver of the
vehicle in question cannot be said to be invalid in law.”
29. Thus, this Court has opined that prior to the amendment made
in the form in 2001 a person holding a licence to drive “light motor
vehicle” could have driven “light passenger carriage vehicle” and
“light goods carriage vehicle” also.
30. In Oriental Insurance Co. Ltd. v. Angad Kol & Ors . (2009) 11
SCC 356, this Court has considered the decision in National
Insurance Co. Ltd. v. Annappa Irappa Nesaria (supra) and Prabhu
JUDGMENT
Lal (supra). The accident in the said case took place on 31.10.2004. A
mini door auto dashed against the insured. Question arose whether the
driver was not having an effective driving licence to drive “goods
carriage vehicle”. Driver was holding a licence to drive motor-cycle
and light motor vehicle. Licence was granted for a period of 20 years.
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48
Therefore, this Court presumed that it was meant for the purpose of a
vehicle other than a transport vehicle. This Court observed thus :
“21. Licence having been granted for a period of 20 years, a
presumption, therefore, arises that it was meant for the
purpose of a vehicle other than a transport vehicle. Had the
driving licence been granted for transport vehicle, the tenure
thereof could not have exceeded to three years.”
31. This Court observed that the grant of licence to drive transport
vehicle became effective from 28.3.2001 i.e. date on which the form
was amended and held that the vehicle was a “goods vehicle” as such
the driver did not hold a valid driving licence for driving a “goods
vehicle”.
32. In S.Iyyapan v. United India Insurance Co. (2013) 7 SCC 62,
this Court has considered the decisions in Ashok Gangadhar (supra),
JUDGMENT
Annappa Irappa Nesaria (supra), Prabhu Lal (supra) and other
decisions and laid down thus :
“18. In the instant case, admittedly the driver was holding a
valid driving licence to drive light motor vehicle. There is no
dispute that the motor vehicle in question, by which accident
took place, was Mahindra Maxi Cab. Merely because the
driver did not get any endorsement in the driving licence to
drive Mahindra Maxi Cab, which is a light motor vehicle, the
High Court has committed grave error of law in holding that
the insurer is not liable to pay compensation because the driver
was not holding the licence to drive the commercial vehicle.
The impugned judgment is, therefore, liable to be set aside.”
Page 48
49
33. This Court in Kulwant Singh & Ors. v. Oriental Insurance Co.
Ltd . (2015) 2 SCC 186, referring to the decisions of this Court in
S.Iyyapan (supra) and Annappa Irappa Nesaria (supra) has laid down
that when one driver is holding a licence to drive light motor vehicle,
he can drive commercial vehicle of that category. This Court has
considered the question thus :
“8. We find that the judgments relied upon cover the issue in
favour of the appellants. In Annappa Irappa Nesaria (2008) 3
SCC 464, this Court referred to the provisions of Sections 2(21)
and (23) of the Motor Vehicles Act, 1988, which are definitions
of “light motor vehicle” and “medium goods vehicle”
respectively and the rules prescribing the forms for the licence
i.e. Rule 14 and Form 4. It was concluded: (SCC p. 468, para
20)
“ 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’. The light motor vehicle continued, at the
relevant point of time to cover both ‘light passenger
carriage vehicle’ and ‘light goods carriage vehicle’. A
driver who had a valid licence to drive a light motor
vehicle, therefore, was authorised to drive a light goods
vehicle as well.”
JUDGMENT
9. In S. Iyyapan (2013) 7 SCC 62, the question was whether the
driver who had a licence to drive “light motor vehicle” could
drive “light motor vehicle” used as a commercial vehicle,
without obtaining endorsement to drive a commercial vehicle.
It was held that in such a case, the insurance company could
not disown its liability. It was observed: (SCC p. 77, para 18)
“ 18 . In the instant case, admittedly the driver was
holding a valid driving licence to drive light motor
vehicle. There is no dispute that the motor vehicle in
question, by which accident took place, was Mahindra
Maxi Cab. Merely because the driver did not get any
endorsement in the driving licence to drive Mahindra
Maxi Cab, which is a light motor vehicle, the High
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50
Court has committed grave error of law in holding that
the insurer is not liable to pay compensation because the
driver was not holding the licence to drive the
commercial vehicle. The impugned judgment [Civil
Misc. Appeal No. 1016 of 2002, order dated 31-10-2008
(Mad)] is, therefore, liable to be set aside.”
10. No contrary view has been brought to our notice.
11. Accordingly, we are of the view that there was no breach of
any condition of insurance policy, in the present case, entitling
the Insurance Company to recovery rights.”
34. The decision in Nagashetty v. United India Insurance Co. Ltd.
& Ors . (2001) 8 SCC 56 has also been referred in which it has been
laid down that the tractor will be used for carrying goods. The goods
will be carried in a trailer attached to it. Thus it was held that the
holder having an effective driving licence can drive a tractor, if used
for carrying goods. He would not become disqualified to drive a
tractor if a trailer is attached to it. The contention that it was a
transport vehicle, as trailer was attached to it, consequently, driver
JUDGMENT
was not holding a valid licence, was rejected. This Court considered
the submission and held as under :
“9. Relying on these definitions, Mr S.C. Sharda submitted
that admittedly the trailer was filled with stones. He submitted
that once a trailer was attached to the tractor the tractor
became a transport vehicle as it was used for carriage of goods.
He submitted that Section 10(2) of the Motor Vehicles Act
provides for grant of licences to drive specific types of vehicles.
He submitted that the driver only had a licence to drive a
tractor. He submitted that the driver did not have a licence to
drive a transport vehicle. He submitted that therefore it could
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51
not be said that the driver had an effective and valid driving
licence to drive a goods carriage or a transport vehicle. He
submitted that thus the driver did not have a valid driving
licence to drive the type of vehicle he was driving. He
submitted that as the driver did not have a valid driving
licence to drive a transport vehicle, the Insurance Company
could not be made liable. He submitted that the High Court
was right in so holding.
10. We are unable to accept the submissions of Mr S.C. Sharda.
It is an admitted fact that the driver had a valid and effective
licence to drive a tractor. Undoubtedly under Section 10, a
licence is granted to drive specific categories of motor vehicles.
The question is whether merely because a trailer was attached
to the tractor and the tractor was used for carrying goods, the
licence to drive a tractor becomes ineffective. If the argument
of Mr S.C. Sharda is to be accepted, then every time an owner
of a private car, who has a licence to drive a light motor
vehicle, attaches a roof carrier to his car or a trailer to his car
and carries goods thereon, the light motor vehicle would
become a transport vehicle and the owner would be deemed to
have no licence to drive that vehicle. It would lead to absurd
results. Merely because a trailer is added either to a tractor or
to a motor vehicle by itself does not make that tractor or motor
vehicle a transport vehicle. The tractor or motor vehicle
remains a tractor or motor vehicle. If a person has a valid
driving licence to drive a tractor or a motor vehicle, he
continues to have a valid licence to drive that tractor or motor
vehicle even if a trailer is attached to it and some goods are
carried in it. In other words, a person having a valid driving
licence to drive a particular category of vehicle does not
become disabled to drive that vehicle merely because a trailer
is added to that vehicle.
JUDGMENT
11. In this case we find that the Insurance Company, when
issuing the insurance policy, had also so understood. The
insurance policy has been issued for a tractor. In this insurance
policy, an additional premium of Rs.12 has been taken for a
trailer. Therefore the insurance policy covers not just the
tractor but also a trailer attached to the tractor. The insurance
policy provides as follows for the “persons or classes of persons
entitled to drive”:
“ Persons or classes of persons entitled to drive .—Any
person including insured provided that the person
driving holds an effective driving licence at the time of
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52
the accident and is not disqualified from holding or
obtaining such a licence:
Provided also that the person holding an effective
learner’s licence may also drive the vehicle when not
used for the transport of goods at the time of the
accident and that such a person satisfies the
requirements of Rule 3 of the Central Motor Vehicles
Rules, 1989, limitations as to use.”
12. The policy is for a tractor. The “effective driving licence” is
thus for a tractor. The restriction on a learner driving the
tractor when used for transporting goods shows that the policy
itself contemplates that the tractor could be used for carriage
of goods. The tractor by itself could not carry goods. The goods
would be carried in a trailer attached to it. That is why the
extra premium for a trailer. The restriction placed on a person
holding a learner’s licence i.e. not to drive when goods are
being carried is not there for a permanent licence-holder. Thus
a permanent licence-holder having an effective/valid licence to
drive a tractor can drive even when the tractor is used for
carrying goods. When the policy itself so permits, the High
Court was wrong in coming to the conclusion that a person
having a valid driving licence to drive a tractor would become
disqualified to drive the tractor if a trailer was attached to it.”
35. “Transport vehicle” as defined in section 2(47) means a public
service vehicle, a goods carriage, an educational institution bus or a
JUDGMENT
private service vehicle. Public service vehicle has been defined in
section 2(35) to mean any motor vehicle used or adapted to be used
for the carriage of passengers for hire or reward, and includes a
maxicab, a motorcab, contract carriage, and stage carriage. “Goods
carriage” which is also a transport vehicle, is defined in section 2(14)
to mean any motor vehicle constructed or adapted for use solely for
the carriage of goods, or any motor vehicle not so constructed or
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53
adapted when used for the carriage of goods. It was submitted that a
person holding licence to drive Light Motor Vehicle who is driving a
vehicle registered for private use, is driving a similar vehicle, which is
registered or insured, for the purpose of carrying passengers for hire
or reward, would require endorsement as to drive a “transport vehicle”
is not contemplated by the provisions of the Act. There are several
vehicles which can be used for private use as well as for carrying
passengers for hire or reward. It was also submitted that a driver who
is competent to drive a vehicle for private use, would be entitled to
drive the same vehicle if it is used for hire or reward or for even
carrying the goods in the said vehicle. It was also submitted that it
was intended by the Amendment Act 54/1994 to simplify the
procedure not to make it complicated and invalidate the licence of
JUDGMENT
light motor vehicle and its holder could drive transport vehicle of the
weight specified in section 2(21) of the Act.
36. It was further submitted that there is difference in ‘class of
vehicles’ and ‘type of vehicles’ and it is not necessary to obtain
endorsement to drive transport vehicle of Light Motor Vehicle
category when a person is competent to drive the same class of
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54
vehicle i.e. a light motor vehicle, as per the Amendment Act 54 of
1994 and Forms 4 and 6 as amended in 2001.
37. It was also submitted that when this Court has held in Annappa
Irappa Nesaria (supra) that prior to insertion of the Forms in 2001 the
holder of licence of “light motor vehicle” was competent to drive a
transport vehicle also. It was further submitted that no change has
been brought by insertion of the Forms in the provisions contained in
section 10(2)(d).
38. It was also submitted that Section 3 of the MV Act, 1988 from
the very beginning provided about the transport vehicle. However,
classes of vehicle classified in section 10(2) were light motor vehicle,
medium goods and passenger motor vehicle, and heavy goods and
passenger vehicle. The change brought about in 1994 was substitution
JUDGMENT
of transport vehicle in place of medium and heavy goods and
passenger vehicles and in view of the decisions of this Court in Ashok
Gangadhar (supra), Annappa Irappa Nesaria (supra) and Kulwant
Singh (supra), a person holding LMV licence was competent to drive
a transport vehicle. The provisions of “light motor vehicle” in section
10(2)(d) remains intact. It has not been amended. It was also
submitted that the Forms which have been amended would not govern
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55
the interpretation of the provisions of Act; whereas the intendment of
the Rule 8 inserted in 2007 was that type of vehicle could be added.
What is the effect and purpose of insertion of Rule 8 in 2007, has not
been taken into consideration. The Form has to be interpreted in tune
with provisions of the Act and Rules. The object of the Act and
Amendment Act 54/1994 has also not been taken into consideration in
any of the decisions, and the effect of different syllabus having been
prescribed for “light motor vehicle”, heavy and medium vehicles was
also not placed for consideration.
39. In Ashok Gangadhar Maratha in para 10 (supra), S.Iyyapan v.
United India Insurance Co. (supra), Kulwant Singh & Ors. v. Oriental
Insurance Co. Ltd. (supra), and Nagashetty v. United India Insurance
Co. Ltd. & Ors. (supra), the view taken is that when driver is holding
JUDGMENT
licence to drive light motor vehicle, he is competent to drive transport
vehicle of that category; whereas in New India Assurance Co. Ltd. v.
Prabhu Lal (supra) the view taken is that before 2001 also it was
necessary for a driver possessing licence to drive Light Motor Vehicle
to obtain endorsement to drive transport vehicle of that category;
whereas in National Insurance Co. Ltd. v. Annappa Irappa Nesaria
(supra), this Court laid down that before 28.3.2001 there was no
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56
necessity for holder of licence to drive light motor vehicle to have
endorsement to drive transport vehicle; whereas in New India
Assurance Co. Ltd. v. Roshanben Rahemansha Fakir & Anr. (supra)
and Oriental Insurance Co. Ltd. v. Angad Kol & Ors. (supra), the view
taken is that it is necessary for holder of light motor vehicle licence to
obtain specific endorsement on licence, to drive transport vehicle of
the light motor vehicle weight as provided in section 2(41).
Thus, there appears to be a conflict in the decisions of this
Court with respect to the pre-amended position and also after
amendment has been effected in the Forms in 2001. In view of
aforesaid discussion, following questions are required to be referred to
larger Bench :
1 What is the meaning to be given to the definition of “light
JUDGMENT
motor vehicle” as defined in section 2(21) of the MV Act ?
Whether transport vehicles are excluded from it ?
2 Whether ‘transport vehicle’ and ‘omnibus’ the “gross vehicle
weight” of either of which does not exceed 7500 kgs. would
be a “light motor vehicle” and also motor-car or tractor or a
road roller, “unladen weight” of which does not exceed 7500
kgs. and holder of licence to drive class of “light motor
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57
vehicle” as provided in section 10(2)(d) would be competent
to drive a transport vehicle or omnibus, the “gross vehicle
weight” of which does not exceed 7500 kgs. or a motor-car
or tractor or road roller, the “unladen weight” of which does
not exceed 7500 kgs. ?
3 What is the effect of the amendment made by virtue of Act
No.54 of 1994 w.e.f. 14.11.1994 while substituting clauses
(e) to (h) of section 10(2) which contained “medium goods
vehicle”, “medium passenger motor vehicle”, “heavy goods
vehicle” and “heavy passenger motor vehicle” by “transport
vehicle”? Whether insertion of expression ‘transport vehicle’
under section 10(2)(e) is related to said substituted classes
only or it also excluded transport vehicle of light motor
JUDGMENT
vehicle class from purview of Sections 10(2)(d) and 2(41) of
the Act?
4 What is the effect of amendment of the Form 4 as to
operation of the provisions contained in section 10 as
amended in the year 1994 and whether procedure to obtain
driving licence for transport vehicle of class of “Light Motor
Vehicle” has been changed ?
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40. Let the matters be placed before Hon’ble the Chief Justice of
India to constitute a larger Bench in order to resolve conflict in the
views expressed by different Benches of this Court.
…………………………J.
(Kurian Joseph)
New Delhi; ………………………..J.
February 11, 2016. (Arun Mishra)
JUDGMENT
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