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IN THE HIGH COURT OF DELHI
Sanjeev Sachdeva, J.
Baksha Ram - Appellant
Versus
Heena - Respondent
MAC.APP. 201 of 2021
Decided On : 12-07-2021




A driver's license remains valid for 30 days post-expiry, ensuring compliance with insurance policy terms as per the Motor Vehicles Act, 1988.

Headnote:(A) Motor Vehicles Act, 1988 - Section 14 - Driving license validity - Appellant challenged judgment granting recovery rights to insurance company, asserting driver held a valid license on accident date, relying on the proviso to Section 14 indicating a 30-day grace period post-expiry of the license. - The accident occurred within this period, validating the license status and negating insurance policy violation. (Paras 5-16)

(B) Appeal - Right to recovery - The determination that the driver lacked a valid license contrary to the Act and established case law was erroneous, leading to an overturning of the tribunal's finding. (Para 16)

Facts of the case:
Appellant, owner of the offending vehicle, contested a tribunal ruling granting recovery rights to the insurance company after the driver's license expired before the accident.

Findings of Court:
The tribunal's finding of invalidity of the driver's license is set aside; thus, the insurance company cannot recover from the appellant or driver.

Issues: The key issue addressed was whether the driver held a valid license at the time of accident despite its expiry prior to the event.

Ratio Decidendi: Court concluded that the driver's license was effective due to the statutory 30-day post-expiry grace period, invalidating claims of policy violation.

Result: Appeal allowed.

JUDGMENT

Sanjeev Sachdeva, J. The hearing was conducted through video conferencing.

2. Appellant (owner of the offending vehicle) impugns judgment dated 18.09.2020 passed by the Motor Accident Claims Tribunal to the limited extent that it grants recovery right to the insurance company i.e. respondent No.7 against the appellant as well as the driver of the offending vehicle.

3. Learned counsel for the appellant submits that the driver has already expired.

4. Learned counsel for the appellant submits that the driving license of the driver was valid upto 10.11.2014 and the subject accident took place on 05.12.2014.

5. He submits that in terms of second proviso to Section 14 of the MOTOR VEHICLES ACT , 1988 (hereinafter referred to as the Act) the driving license continues to be effective for a period of 30 days from the date of its expiry and as such the Tribunal has erred in holding that the driver was not holding a valid driving license at the time of the accident and there is a violation of the terms and conditions of the insurance policy.

6. Learned counsel relies on the decision of a coordinate bench of this Court dated 09.01.2019 in MAC.APP.866/2017 titled New India Assurance Company Ltd vs. Santoshi Devi & Ors..

7. Section 14 of the Act reads as under:

    "14. Currency of licences to drive motor vehicles.-

    (1) A learner's licence issued under this Act shall, subject to the other provisions of this Act, be effective for a period of six months from the date of issue of the licence.

    (2) A driving licence issued or renewed under this Act shall,-

    (a) in the case of a licence to drive a transport vehicle, be effective for a period of three years:

    Provided that in the case of licence to drive a transport vehicle carrying goods of dangerous or hazardous nature be effective for a period of one year and renewal thereof shall be subject to the condition that the driver undergoes one day refresher course of the prescribed syllabus; and Provided that in the case of licence to drive a transport vehicle carrying goods of dangerous or hazardous nature be effective for a period of one year and renewal thereof shall be subject to the condition that the driver undergoes one day refresher course of the prescribed syllabus; and

    (b) in the case of any other licence,-

    (i) if the person obtaining the licence, either originally or on renewal thereof, has not attained the age of fifty years on the date of issue or, as the case may be, renewal thereof,- fifty years on the date of issue or, as the case may be, renewal thereof,-

    (A) be effective for a period of twenty years from the date of such issue or renewal; or

    (B) until the date on which such person attains the age of fifty years, fifty years, whichever is earlier;

    (ii) if the person referred to in sub-clause (i), has attained the age of fifty years on the date of issue or as the case may be, renewal thereof, be effective, on payment of such fee as may be prescribed, for a period of five years from the date of such issue or renewal:

    Provided that every driving licence shall, notwithstanding its expiry under this sub-section continue to be effective for a period of thirty days from such expiry."

8. In terms of proviso to Section 14 , every driving licence, notwithstanding its expiry, continues to be effective for a period of 30 days from such expiry.

9. Further, Section 15 (1) of the Act prescribes that on an application being made, the licensing authority shall renew the driving license with effect from the date of its expiry, however, if an application is made more than 30 days after date of the expiry, the driving licence shall be renewed with effect from the date of its renewal.

10. Section 15 , in fact, reaffirms the proviso to Section 14 that the driving licence continues to remain effective for a period of 30 days from its expiry.

11. In the present case, the accident had taken place on 05.12.2014, which was within 30 days of the expiry of the driving licence on 10.11.201

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