Gujarat HC Upholds ₹9.48 Lakh Compensation, Finding LMV Licence Covered Goods Truck Under 7,500 Kg Despite Expired Transport Endorsement

The deceased was a pillion rider on a motorcycle involved in a collision with a milk truck on 29 May 2012.

His parents’ claim petition was partly allowed, and the Tribunal awarded Rs. 9,48,000 with interest at 9% per annum.

The insurer appealed under Section 173 of the Motor Vehicles Act, 1988, contending that the truck driver lacked a valid licence to drive a transport vehicle because the transport-vehicle endorsement had expired before the accident.

The driver held a licence for a light motor vehicle in the non-transport category, and the truck was registered as a Light Goods Vehicle with a gross vehicle weight not exceeding 7,500 kg.

Section 173 of the Motor Vehicles Act, 1988, provides for an appeal against an award of the Claims Tribunal.

Under Sections 2(21) and 10(2)(d) of the Act, as interpreted in Mukund Dewangan v. Oriental Insurance Company Limited, (2016) 4 SCC 298, a driver holding an LMV licence may drive a transport vehicle whose gross vehicle weight does not exceed 7,500 kg without a separate transport-vehicle authorisation.

The Court also relied on the larger Bench decision in Bajaj Allianz General Insurance Company Limited v. Rambha Devi and Others, 2024 LawSuit (SC) 961, which upheld that principle and clarified that additional transport-vehicle eligibility requirements generally apply to vehicles exceeding 7,500 kg.

The Court accepted that the driver’s transport-vehicle licence period had expired before the accident, but found that he held a valid LMV licence on the accident date.

The truck’s registration certificate classified it as a Light Goods Vehicle, and its gross vehicle weight did not exceed 7,500 kg.

Applying Mukund Dewangan as upheld and explained in Rambha Devi, the Court held that the LMV licence was sufficient to drive this vehicle; the expired transport endorsement therefore did not establish a breach that would exonerate the insurer.

It dismissed the insurer’s appeal and confirmed the Tribunal’s judgment and award.

The connected civil application for withdrawal or disbursement of the amount was disposed of accordingly, and the record was directed to be returned to the Tribunal.