The need for a special authorization to drive the auto-rickshaw as a public carrier, as contemplated by Section 3 of the Motor Vehicles Act.

RAMANUJAM, J. :- This appeal has been filed by the insurer as against the award passed by the Motor Accidents Claims Tribunal, Madras, in O. P. 284 of 1975. On 17-3-1975, one Basavanniah along with some of his friends, was making some purchases in the Evening Bazar. At that time, an auto-rickshaw bearing registration No.TMZ 6631, belonging to one Mrs. Chandra and insured with the second respondent, came at a high speed and knocked him down. He sustained head injuries and became unconscious. Immediately he was removed to the General Hospital. Later he succumbed to the injuries on 21-3-1975. On the ground that the driver of the auto-rickshaw was rash and negligent and the accident had occurred due to that rash and negligent driving, the widow and the children of the deceased, filed a claim petition before the Motor Accidents Claims Tribunal, Madras, claiming compensation of Rs. 40,000.

2. The claim was opposed by the owner of the auto-rickshaw, the first respondent and the insurance company, the second respondent with which the auto-rickshaw was insured. The stand taken by them was that the accident occurred solely due to the negligence of the deceased in that he suddenly crossed the road without observing the traffic of the road, that the driver of the auto-rickshaw was not negligent at all and that therefore the respondents are not liable to pay any compensation. They also contended that the compensation claimed was highly excessive. The second respondent insurance company raised a further defence that the driver of the auto-rickshaw did not possess a valid driving licence to drive the auto-rickshaw as required under S- 3(1) of the Motor Vehicles Act, and there is violation of the policy conditions, in that, a person not authorised to drive the auto-rickshaw as a public carrier, had been allowed to drive the vehicle.

3. Having regard to the defences taken, the following three points were set down for consideration by the tribunal

1. Whether accident occurred due to the rash and negligent driving of the auto-rickshaw ?

2. To what amount of compensation the petitioners would be entitled?

3. Whether the driver of the auto-rickshaw was holding a valid driving licence to drive that vehicle and if so whether the second respondent is liable to pay compensation?

4. After analysing the evidence adduced by both parties, the Tribunal held that the accident occurred due to the rash and negligent driving of the auto-rickshaw by its driver and on the second point the Tribunal held that the compensation payable in respect of the accident was Rs. 15,600 in all. On the third point, namely, whether the driver of the auto-rickshaw was holding a valid licence to drive that vehicle, the tribunal took the view that as the driver of the auto-rickshaw has been shown to have possessed a licence for driving a light motor vehicle and the auto-rickshaw being a light motor vehicle, the driver should be taken to have possessed a valid driving licence to drive an auto-rickshaw. In this view, the tribunal held that the insurance company cannot avoid its liability under the policy for the accident in question. Aggrieved by the award of the Tribunal, the insurer has filed this appeal, wherein the only contention raised is, that the driver of the auto-rickshaw which caused the accident, had no valid driving licence to drive the vehicle and that the contrary finding given by the tribunal cannot be sustained in law. Thus the only question that has to be considered by us in this appeal is whether the driver of the auto-rickshaw which was involved in the accident had a valid licence to drive the vehicle. If the driver of the auto-rickshaw had no valid licence, to drive that vehicle, the Insurance Company can avoid its liability under the policy as the policy contemplates, (1) the vehicle being driven by 'any person who is in the insured's employ and is driving on his order or with his permission' and (2) 'the person driving holds a licence to drive the vehicle