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New India Assurance Co.ltd. v. Roshanben Rahemansha Fakir

Supreme Court of India · 12 May 2008 · [2008] 8 S.C.R. 328

Court
Supreme Court of India
Decided
12 May 2008
Case no.
C.A. No. 3496 of 2008
Reported as
[2008] 8 S.C.R. 328
Result
Appeal(s) allowed
Length
10 pages
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REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDCITION
CIVIL APPEAL NO. 3496 OF 2008
(Arising out of SLP (C) No.3142 of 2007)
New Indian Assurance Co. Ltd. ... Appellant
Versus
Roshanben Rahemansha Fakir & Anr. ... Respondents

JUDGMENT

S.B. Sinha, J. 1. Leave granted. 2. This appeal is directed against a judgment and order dated 13.11.2006 passed by a Division Bench of the High Court of Gujarat at Ahmedabad in First Appeal No.3441 of 2006 whereby and whereunder an appeal preferred by the appellant herein from a judgment and order dated 5.5.2006 passed by the Motor Accident Claims Tribunal (Main), Rajkot in MPCP No.1211 of 2005 has been dismissed. 3. One Majothee Salim Amadbhai was holder of a licence of a three wheeler. The licence was not meant to be used to drive transport vehicle. The vehicle was owned by one Rashmikant Natvarlal Joshi, Respondent No.2. The Tribunal correctly noticed the description of the class of vehicle, i.e., an Autorikshaw Delivery Van. It was not being used for a private purpose. It was a commercial vehicle. Respondent No.2, admittedly, entered into a contract of insurance in respect of the said vehicle. Certificate of insurance shows that the vehicle was a goods carrying public carrier within the meaning of Rule 51 of the Central Motor Vehicles Rules, 1989. 4. One of the contentions raised by the appellant was that the driver of the said vehicle being not holder of a legal, valid and effective driving licence, it was not liable to reimburse the claim of the claimants. Learned Tribunal negatived the said plea. 5. On an appeal preferred by the appellant before the High Court under Section 173 of the Motor Vehicles Act, 1988 the High Court held as under :

"Section 41 of the Act provides for registration

of motor vehicles and sub-section (4) thereof

provides as under :

‘(4) In addition to the other particulars

required to be included in the certificate

of registration, it shall also specify the

type of the motor vehicle, being a type as

the Central Government may, having

regard to the design, construction and use

of the motor vehicle, by notification in

the official Gazette, specify.’ In exercise of the aforesaid powers, the Central Government issued notification vide S.O.451 (E), dated 19th June, 1992 published in the Gazette of India, Extra Pt.II, Section 3(ii) dated 19th June, 1992 specifying the types of motor vehicles. Relevant portion of the said notification reads as under :

‘In exercise of the power conferred by

sub-Section (4) of Section 41 of the

Motor Vehicles Act, 1988 (59 of 1988)

and in supersession of the Notification

No.S.O.436(E), dated the 12th June, 1989

except or respects things done or omitted

to be done before such supersession, the

Central Government hereby specifies the

types of Motor Vehicles mentioned in

column 2 of the Table below as the type

and respect of Motor vehicles specified

in the corresponding entry in column 1

thereof for the purposes of sub-section(4)

:

TABLE Transport Vehicle Non-Transport Vehicle (1) (2) (i)... (i)... (ii) to (ix)... (ii) to (iv)... (x) Three-wheeled (v) Three-wheeled vehicles transport of vehicles for personal passenger/goods use.

We find that the same classification is

maintained in the subsequent notification dated

5th November 2004 published in the Gazette of

India, Extra-ordinary, Part-II, Section 3(ii)

dated 5th November, 2004 in exercise of the

same powers under sub-section (4) of Section

41 of the Act. The relevant entries therein read

as under :

Transport Vehicle Non-Transport Vehicle

(1) (2)

(i) to (iv) (i) to (iii)...

(v) Three-wheeled (iv) Three-wheeled

vehicles for transport vehicles for personal

of passenger/goods use.

8. A bare perusal of the above statutory orders

would clearly show that an auto rickshaw being

a three wheeled vehicle will fall in the same

category whether it is for transporting goods or

for transporting passengers. There is nothing

on record to show that the licence in question

was for a three wheeled vehicle for personal

use and that it was not for an auto rickshaw for

carrying passengers or for carrying goods." 6. An appeal preferred by the appellant was dismissed summarily. Before the High Court, a decision of this Court in National Insurance Company v. Kusum Rai [(2006) 4 SCC 250] was cited. The High Court opined that the said decision has no application in the instant case. 7. Dr. Meera Agarwal, learned counsel appearing on behalf of the appellant, would submit that in view of the fact that the registration certificate as also the policy of insurance having clearly mentioned that the vehicle in question was a transport vehicle and as the driver thereof was not possessing a licence which was not valid for a transport vehicle, the impugned judgment cannot be sustained. 8. Ms. Sarda Devi, learned counsel appearing on behalf of the respondent, on the other hand would submit that the driver of the vehicle was having an effective driving licence for auto rickshaw and it did not matter as to whether it was adapted for carrying passengers or goods. 9. Section 3 of the Motor Vehicles Act reads as under :

"Section 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 than1[a motor cab or

motor cycle] hired for his own use or rented

under any scheme made under subsection (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." 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 liecence 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 13.05.2004 to 12.05.2024. 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 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. 11. The same is also borne out from the licence in question. The attention of the High Court, however, was not drawn to these aspects of the matter.

The learned Tribunal also, in its judgment dated 5.5.2006 noticed the facts in the following terms :

"When they were proceeding on road on foot

and reached near Fire brigade, a rickshaw

bearing No.GRP 5432 with closed body came

in fast speed, rashly and negligently from

behind and dashed with the complainant Ikbala

and deceased Mahamadsha as a result of which

both of them fell down, sustained injuries,

deceased sustained serious injuries on his head

and other parts of the body, and during the

course of treatment he succumbed to the

injuries." 12. 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. 13. In National Insurance Co. Ltd. v. Swaran Singh and Ors. [(2004) 3 SCC 297], this Court opined : "89. Section 3 of the Act casts an obligation on a driver to hold an effective driving licence for the type of vehicle which he intends to drive. Section 10 of the Act enables the Central Government to prescribe forms of driving licences for various categories of vehicles mentioned in sub-section (2) of the said section. The various types of vehicles described for which a driver may obtain a licence for one or more of them are: (a) motorcycle without gear, (b) motorcycle with gear, (c) invalid carriage, (d) light motor vehicle, (e) transport vehicle, (f) road roller, and (g) motor vehicle of other specified description. The definition clause in Section 2 of the Act defines various categories of vehicles which are covered in broad types mentioned in sub-section (2) of Section 10. They are "goods carriage", "heavy goods vehicle", "heavy passenger motor vehicle", "invalid carriage", "light motor vehicle", "maxi-cab", "medium goods vehicle", "medium passenger motor vehicle", "motor-cab", "motorcycle", "omnibus", "private service vehicle", "semi-trailer", "tourist vehicle", "tractor", "trailer" and "transport vehicle". In claims for compensation for accidents, various kinds of breaches with regard to the conditions of driving licences arise for consideration before the Tribunal as a person possessing a driving licence for "motorcycle without gear", [sic may be driving a vehicle] for which he has no licence. Cases may also arise where a holder of driving licence for "light motor vehicle" is found to be driving a "maxi-cab", "motor-cab" or "omnibus" for which he has no licence. In each case, on evidence led before the Tribunal, a decision has to be taken whether the fact of the driver possessing licence for one type of vehicle but found driving another type of vehicle, was the main or contributory cause of

accident. If on facts, it is found that the

accident was caused solely because of some

other unforeseen or intervening causes like

mechanical failures and similar other causes

having no nexus with the driver not possessing

requisite type of licence, the insurer will not be

allowed to avoid its liability merely for

technical breach of conditions concerning

driving licence.

The said decision has been considered by this Court in Kusum Rai (supra). 14. In National Insurance Company Ltd. v. Annappa Irappa Nesaria and Ors. [(2008) 1 SCALE 642], it was noticed that the provisions of the Act have undergone a change. The definition of ‘light motor vehicle’ would not include a light transport vehicle. In that case, keeping in view the date on which the accident took place, it was held :

"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." 15. For the reasons aforementioned, the impugned judgment cannot be sustained. The same is set aside accordingly. However, in exercise of our jurisdiction under Article 142 of the Constitution of India, we direct that the appellant may satisfy the award in favour of the claimants to recover the same from the owner. The appeal is allowed with the aforementioned directions. No costs.

.............................J.

[S.B. Sinha]

..............................J.

[Lokeshwar Singh Panta] New Delhi; May 12, 2008

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