Delhi High Court
Social Security and PensionsTransport, Maritime, and Aviation Law

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
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 Court. LawLens
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
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Motor Vehicles Act, 19881

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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