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Supreme Court of India

SANT LALversusRAJESH & ORS. ETC.

Citation
2017 INSC 581
Decided
3 July 2017
Disposal
Appeal(s) allowed

Holding

A holder of a licence for light motor vehicle may drive a transport vehicle of the LMV class without obtaining a separate endorsement.

Summary

The owner appealed an award of the Motor Accident Claims Tribunal (MACT) which held that the driver, who possessed only a licence for light motor vehicles (LMV), was unlicensed to drive a tractor attached to a trolley—a transport vehicle—thus breaching the insurance policy. The High Court affirmed this award. The Supreme Court examined whether an LMV licence authorises the holder to drive such a transport vehicle without a separate endorsement under the Motor Vehicles Act, 1988. Relying on the precedent Mukund Dewangan v. Oriental Insurance Co. Ltd., the Court held that a driver with an LMV licence may operate a transport vehicle that falls within the LMV class and no additional endorsement is required, so there was no breach of policy. Consequently, the Court set aside the insurer’s right to recover the amount from the owner and held the owner, driver and insurer jointly and severally liable. The appeals were allowed.

Issues considered

  • Whether a holder of a licence for light motor vehicle can drive a transport vehicle (tractor with trolley) without a separate endorsement under the Motor Vehicles Act, 1988.
  • Whether such driving constitutes a breach of the conditions of the insurance policy.
  • Who bears liability for the accident – the owner, driver, and insurer.

Legislation cited

Subjects

Motor Vehicles ActLight Motor Vehicle licenceTransport vehicleInsurance policyEndorsementLiabilitySupreme CourtAccident claim

Judgment

                          [2017] 7 S.C.R. 823


                             SANT LAL                                     A
                                  v.
                       RAJESH & ORS. ETC.
                (Civil Appeal Nos. 8395-8396of2017)
                            JULY03,2017                                   B

           [ARUN MISHRA AND AMITAVA ROY, JJ.]
        Motor Vehicles Act, 1988 - ss.3, 10(2), 2(21) - Transport
. vehicle - Whether a driver who is having a licence to drive 'light
  motor vehicle' (LMV) and is driving 'transport vehicle' of that class
  is required additionally to obtain an endorsement to drive a
                                                                          c
  transport vehicle - Driver having licence to drive LMV can drive
  such a transport vehicle of LMV class and there is no necessity to
  obtain separate endorsement - In the instant case, tractor attached
  with the trolley was transport vehicle of the category of light motor
  vehicle - Therefore, there was no breach of conditions of the policy.   D
       Allowing the appeals, the Court
        HELD: This Court has considered the question whether
  the holder of licence for light motor vehicle can drive tractor
  attached to the trolley carrying goods and also whether separate
  endorsement is required authorizing him to drive such a transport E
  vehicle and answered in reference in Mukund Dewangan vs.
  Oriental Insurance Co. Ltd. etc. (Civil Appeal No.5826 of 2011).
  It was held that driver having licence to drive light motor vehicle
· can drive such a transport vehicle of LMV class and there is no
  necessity to obtain separate endorsement, since tractor attached F
  with the trolley was transport vehicle of the category of light motor
  vehicle. Hence, there was no breach of the conditions of the policy•.
  [Paras 3, 4 and 5] [824-D-F]
       CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 8395-
 8396 of2017.                                                             G
       From the Judgment and Order dated 02.08.2013 of the High Court
 of Punjab & Haryana at Chandigarh in FAO No. 347 & 348 of 2011.
      Vineet Bhagat, Ms. Archana Pathak Dave, K. G. Bhagat, M. S.
 Bakshi, Ms. Neelam Saini, Advs. for the Appellants.
                                                                          H
                                   823
824             SUPREME COURT REPORTS                         [2017) 7 S.C.R.


A          Bharat Bhushan, Archana Pathak Dave, Ms. Ankita Choudhary,
      Ms. Radhika Sharma, Advs. for the Respondents.
            The Judgment of the Court was delivered by
            ARUN MISHRA, J. 1. Leave granted.

B            2. The appeals have been preferred by the owner, aggrieved by
      the award passed by the Motor Accident Claims Tribunal, Bhiwani (for
      short, "the MACT"). The driver was driving a tractor which was attached
      to the trolley carrying goods. The MACT held that the same becomes
      transport vehicle though the driver was having licence to drive motor
      cycle, scooter, car, jeep arid light motor vehicle. There was no
c     endorsement to drive a transport vehicle. Thus, there was violation of
      the conditions of the policy. Driver was not having a valid licence to
      drive transport vehicle. Thus, after making payments to the claimant,
      right of recovery have been given to the insurer from owner. The award
      has been affirmed by the High Court. Hence present appeals.
D           3. This Court has considered the question whether the holder of
      licence for light motor vehicle can drive tractor attached to the trolley
      carrying goods and also whether separate endorsement is required
      authorizing him to drive such a transport vehicle?
              4. We have answered the question that driver having licence to
 E    drive light motor vehicle can drive such a transport vehicle of LMV
      class and there is no necessity to obtain separate endorsement, since
      tractor attached with the trolley was transport vehicle of the category of
      light motor vehicle. Hence, there was no breach of the conditions of the
      policy.
 F           5. Accordingly, in view of the answer given to reference by the
      three Judge Bench of this Court in Mukund Dewangan vs. Oriental
      Insurance Co. Ltd. etc. (Civil Appeal No.5826 of 2011), these appeals
      have to be allowed and are hereby allowed. The right given to the
      insurer to recover amount from owner is hereby set aside. The liability
      is held to be joint and several of owner, driver and insurer. No costs.
 G

      Devika Gujral                                               Appeals allowed.


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