IMPORTANT POINTS
Invalid driving licence breaches the terms of insurance policy absolving the company from its liability.
When terms of insurance policy are breached, the owner and the driver of the vehicle become liable. Insurance Company will be entitled to recover the award amount paid by it from the owner and the driver.

Judgment :-

S.B. Sinha, J.

1. Leave granted.

2. This appeal is directed against a judgment and order dated 21.9.2007 passed by a Division Bench of the High Court of Madhya Pradesh at Jabalpur in Misc. Application No.21/09/2007 whereby and whereunder the appeals preferred by the claimants/respondents from an award dated 29.1.2007 passed by the IInd Additional Motor Accident Claims Tribunal (Fast Track Court), Kanti (hereinafter referred to as ‘the Tribunal) in M.V.C. No.350 of 2004, was allowed. A cross objection filed by the appellant herein has also been dismissed by the said judgment.

3. Heirs and legal representatives of Genda Bai, who died in an accident which took place on 31.10.2004, filed a claim application before the Tribunal, contending in that on the fateful day, when she had been standing near a turning known as ‘Hardi turning, a mini door Auto bearing registration No.MP-20G-9937 dashed against her as a result whereof she suffered injuries. She was taken to the District Hospital where she succumbed thereto on the next day. The deceased was aged about 45 years at the time of her death. She allegedly used to earn about Rs.5,000/- per month by preparing ‘Donnapattals.

4. Indisputably, the vehicle was a goods carriage vehicle which was owned by Respondent No.7, Narendra, and was being driven by Respondent No.6, Umesh. Before the Tribunal, a contention was raised that the driver of the vehicle did not possess a valid and effective driving licence. Overruling the said contention, an award of Rs.1,83,000/- was made.

5. Claimants, as noticed hereinbefore, preferred an appeal there against. Appellant also filed a cross-objection. Inter alia, on the premise that the contribution to the family by the deceased would have been about Rs.2,500/- per month and on deduction of conventional 1/3rd amount from her income, the annual loss of dependency was calculated at Rs.20,000/- per annum. The High Court applied the multiplier of 15 and, thus, awarded a sum of Rs.3,00,000/-towards loss of dependency. A sum of Rs.40,000/-was furthermore awarded under the heads of loss of estate, funeral expenses, loss of expectancy of life including a sum of Rs.10,000/- to the husband for loss of consortium.

6. Mr. Santosh Paul, learned counsel appearing on behalf of the appellant, would submit that the driving licence having been granted to the respondent No.6, Umesh, in the year 2003 for a period of 20 years, evidently it was not meant for driving a goods carriage vehicle.

7. Mr. Raj Kumar Gupta, learned counsel appearing on behalf of the respondent, however, would submit that as the appellant already deposited 50% of the awarded amount, this Court may direct it to pay the balance awarded amount with a right to recover the same from the owner and/or the driver of the vehicle.

8. Motor Vehicles Act, 1988 (hereinafter called as ‘the Act) was enacted to consolidate and amend the law relating to motor vehicles. ‘Driving licence has been defined in Section 2(10) to mean the licence issued by a competent authority under Chapter II authorizing the person specified therein to drive, otherwise than as a learner, a motor vehicle or a motor vehicle of any specified class or description. "Goods carriage" has been defined in Section 2(14) to mean any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods. The said Act also defines ‘heavy goods vehicle, ‘heavy passenger motor vehicle, ‘medium goods vehicle and ‘medium passenger motor vehicle as well as a ‘light motor vehicle in Section 2(21) of the Act to mean:

."‘light motor vehicle means a transport vehicle or omnibus the gross vehicle weight of either of which or a motor car or tractor or road-roller the unladen weight of any of which, does not exceed 7500 kilograms."

9. Although the definition of the ‘light motor vehicle brings within its umbrage both ‘transport vehicle or ‘omnibus, indisputably, as