Delhi High Court

Driving license renewal does not ipso facto establish restoration of earning capacity for professional drivers.

New India Assurance Company Ltd vs Phulshankar @ Fool Shanker Meena & Anr

Delhi High CourtJUDGMENT: April 10, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellant-insurance company sought to assail the order dated 26.07.2019 passed by the Commissioner, Employee's Compensation, which awarded compensation to Respondent No. 1 (the claimant)

Source reference: p. 1

The claimant, a 29-year-old truck driver, met with an accident on 21.10.2016 during the course of his employment while transporting rice from Delhi to Mumbai

Source reference: p. 2

He sustained severe injuries to his left leg, resulting in an assessed 26% permanent physical disability

Source reference: p. 2-3

The Commissioner determined that this physical impairment resulted in a 100% loss of earning capacity, as the claimant could no longer perform his duties as a driver

Source reference: p. 2

The insurance company challenged this, primarily arguing that the claimant had subsequently renewed his driving license, which allegedly proved his fitness to work

Source reference: p. 2
02

Issues

1. Whether the renewal of a driving license post-accident establishes that a claimant is fit for vocation and thus negates a finding of 100% loss of earning capacity

Source reference: p. 3

2. Whether the assessment of 100% loss of earning capacity based on a 26% physical disability was erroneous

Source reference: p. 2

3. Whether the appeal involved a substantial question of law as required under Section 30 of the Employee’s Compensation Act, 1923

Source reference: p. 4
03

Law Applied

The court applied Section 30 of the Employee’s Compensation Act, 1923, which restricts appeals to "substantial questions of law"

Source reference: p. 1, 4

It relied on Section 15(1) of the Motor Vehicles Act, 1988, which mandates a medical certificate for license renewal only for transport vehicle drivers who have attained 40 years of age

Source reference: p. 3

The court cited the Rajasthan High Court decision in National Insurance Company Limited vs. Rakesh Kumar Saini & Anr. regarding the lack of medical certificate requirements for younger applicants during license renewal

Source reference: p. 3

it applied the principle from Raj Kumar v. Ajay Kumar (2011) 1 SCC 343, which dictates that functional disability/loss of earning capacity must be assessed relative to the specific nature of the claimant’s vocation

Source reference: p. 4
04

Reasoning

The Court rejected the appellant's contention regarding the driving license renewal on three grounds. First, the document was not presented before the learned Commissioner, nor was the claimant cross-examined on it

Source reference: p. 3

Second, under Section 15(1) of the Motor Vehicles Act, because the claimant was under 40 years old, he was not required to submit a medical certificate for renewal; thus, the renewal did not prove physical fitness

Source reference: p. 3

Third, the Court reasoned that the ability to drive for short durations does not equate to the restoration of full earning capacity for a commercial truck driver, a role requiring prolonged physical exertion and sustained mobility

Source reference: p. 3-4

The Court emphasized that functional disability is distinct from physical disability; for a driver, even a partial limb injury can lead to total loss of earning capacity in that specific vocation

Source reference: p. 4

Finally, the Court noted that findings of fact by a Commissioner cannot be interfered with under Section 30 unless they are shown to be perverse

Source reference: p. 4
05

Holding

The High Court of Delhi dismissed the appeal, holding that the renewal of a driving license does not ipso facto establish a restoration of earning capacity, especially when no medical certificate was required for such renewal

The Court affirmed the Commissioner’s assessment of 100% functional disability, concluding that there was no perversity in the findings and no substantial question of law was raised

Source reference: p. 4

The impugned order directing the payment of compensation was upheld

Source reference: p. 4
Delhi High Court

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New India Assurance Company LtdvsPhulshankar @ Fool Shanker Meena & Anr

Delhi High Court · April 10, 2026

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