Under Section 10 of the Motor Vehicles Act, 1988, a driving license does not require an endorsement for driving a transport vehicle, and the insurance company is liable to pay compensation even if the driver's license does not have such an endorsement.

S.S.Sudharkar, J.

1. This appeal has been filed by the owner and driver of the vehicle involved in the accident against the award passed by the Motor Accident Claims Tribunal, Bhiwani, by which an award of Rs. 1,00,000/ was made against them.

2. In this case notice of motion was issued to respondent No. 5 only.

3. We have heard learned counsel for the appellants and learned counsel for respondent No. 5.

4. The challenge to the award during the arguments was only regarding the liability of the Insurance Company. It is the argument of learned counsel for the appellants that the award of the Tribunal is erroneous to the extent that it has absolved the Insurance Company, respondent No. 5 from the liability to pay compensation. The reason for the tribunal holding that the Insurance Company was not liable is that the driving licence of the driver was not issued for driving a transport vehicle. The learned tribunal has relied on the case of Manohar Jamatmal Sindhi and Anr. v. Ranquba and Ors., 1994 A.C.J. 1280. It is held by the High Court of Gujarat in that case that the driver was holding licence to drive a light motor vehicle whereas he was driving a transport vehicle and in the absence of a specific endorsement on the date of accident authorising him to drive as a paid employee a transport vehicle, he was not duly licenced to drive the said vehicle. The tribunal has also relied on the case of United India Insurance Company Ltd. v. K. Subramaniam and Ors., 1991 A.C.J. 625, wherein it has been held that the drivers licence was endorsed after the date of accident authorising him to drive a transport vehicle as a paid employee and, therefore, the driver cannot be said to be holding a valid driving licence to drive the tempo on the date of accident and the Insurance Company was not liable to pay the compensation.

5. For appreciating the point involved in this case, it will be proper to see the provisions regarding driving licence. In the Motor Vehicles Act, 1988 (hereinafter referred to as the 1988 Act) the said provision is under Section 10, which is reproduced as under :

"Section 10. Form and contents of licences to drive :-

- (1) Every learners licence and driving licence, except a driving licence issued under Section 18, shall be in such form and shall contain such information as may be prescribed by the Central Government.

(2) A learners licence or, as the case may be, driving licence shall also be ex pressed as entitling the holder to drive a motor vehicle of one or more of the following classes namely : (a) motor cycle without gear;

(b) motor cycle with gear;

(c) Invalid carriage;

(d) light motor vehicle;

(e) medium goods vehicle;

(f) medium passenger motor vehicle;

(g) heavy goods vehicle;

(h) heavy passenger motor vehicle;

(i) road-roller;

(j) motor vehicle of a specified description.

The accident in the present case took place on 2.10.1992. At that time the 1988 Act was prevalent and in the requirement of section 10 of the 1988 Act, there is no mention that a licence should expressly have endorsement that it is issued for driving a transport vehicle. It can be seen that the cases of Manohar Jamatmal Sindhi and Anr. v. Ranquba and Ors. and United India Insurance Company Ltd. v. K. Sub ramaniam and Ors., (supra) are with regard to the accident which took place before the 1988 Act came into force, and the prevalent Act on the dates of accident in the said cases was Motor Vehicles Act 1939 (hereinafter referred to as the 1959 Act). The relevant provision is under sub-section 2 of Section 8 of the 1939 Act which is reproduced below: "Section 8(2) : A driving licence shall specify whether the holder is entitled to drive as a paid employee and whether he is entitled to drive a transport vehicle and shall further be expressed as entitling the holder to drive a motor vehicle of one or more of the following classes, namely : (a) motor cycle;

(b) Invalid carriage;

(c) light motor vehicle;

(d) medium goods vehicle;

(e) medium pa