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2015 Supreme(P&H) 2341

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SUDEEPTI SHARMA, J.
Jitender and Another – Appellants
Versus
Oriental Insurance and Others – Respondents
FAO No. 2921 of 2015
Decided On : 08-04-2026

Advocates Appeared:
For the Appellant : Sumit Gupta
For the Respondent: D.P. Gupta

A driver holding a valid license for a light motor vehicle is authorized to drive a transport vehicle of that class, including a tractor, provided the gross vehicle weight does not exceed 7500 kilograms. The insurer cannot avoid liability for technical license breaches without proving a causal nexus.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 3 and 166 - Motor accident - Liability of insurer - Driving license - Validity of license for different class of vehicle - Whether driver holding license for light motor vehicle is competent to drive tractor without specific endorsement - Held, light motor vehicle includes tractor if gross vehicle weight does not exceed 7500 kilograms - Insurance company cannot be absolved of liability merely for technical breach of conditions concerning driving license unless it is proved that the cause of accident had nexus with the driver not possessing requisite type of license. (Paras 14, 16, 17)

(B) Appeal - Liability - Recovery rights - Tribunal granting recovery rights to insurer against owner and driver - Set aside - Insurer held solely liable to satisfy award. (Paras 18, 19)

Facts of the case:
The appellants challenged an award where the insurer was granted recovery rights against them, alleging the driver lacked a specific endorsement for the vehicle involved in the accident. The driver held a valid license for light motor vehicles at the time of the incident.

Findings of Court:
The vehicle involved was a tractor with a gross weight below the threshold for light motor vehicles. The driver possessed a valid license for the light motor vehicle category, which encompasses the vehicle in question.

Issues: Whether the absence of a specific endorsement for a tractor on a light motor vehicle license constitutes a breach of insurance policy conditions sufficient to grant recovery rights to the insurer.

Ratio Decidendi: A driver holding a valid license for a light motor vehicle is authorized to drive a transport vehicle of that class provided the gross vehicle weight does not exceed 7500 kilograms. Technical breaches regarding license endorsements do not absolve the insurer of liability unless a nexus is established between the breach and the cause of the accident.

Result: Appeal allowed.

Table of Content
1. overview of claim petition facts, issues framed, and tribunal outcome. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. appellants argue lmv licence covers tractor, insurance company disputes validity. (Para 7 , 8 , 9 , 10 , 11)
3. court evaluates whether the offending vehicle qualifies as a light motor vehicle. (Para 12 , 13 , 14 , 15)
4. licence for lmv authorizes driving transport vehicles under 7500kg weight limit. (Para 16 , 17 , 18)
5. final order setting aside recovery rights and fixing insurance company liability. (Para 19 , 20 , 21)

JUDGMENT :

SUDEEPTI SHARMA, J.

1. The present appeal has been filed by the appellants (driver and owner of the offending vehicle) against award dated 13.01.2015 passed in a claim petition filed under Section 166 of the Motor Vehicles Act, 1988 by the Motor Accident Claims Tribunal, Sonepat (for short 'the Tribunal'), wherein the appellants (driver and owner of the offending vehicle) were fastened with the liability to pay the compensation of Rs.5,50,000/- to the claimants/respondents No.2 to 9 along with interest @ 7.5% per annum from the date of filing of claim petition till recovery.

BRIEF FACTS OF THE CASE

2. Brief facts of the case are that on 17.04.2012 the deceased was going to his village Sirsadh from Gohana Mandi after selling his wheat on his motorcycle bearing No. HR-12E-3243. At about 7.15 pm one Eicher tractor bearing No. HR-31G-4592 being driven by respondent No. 1 came from opposite side in a rash and negligent manner and with fast speed and struck against the motorcycle of the deceased. As a result of which accident occurred and deceased sustained injuries. The deceased was shifted to General Hospital, Gohana by the complainant after arranging a vehicle and the concerned doctor after giving first-aid, referred deceased to PGIMS, Rohtak where he died in PGIMS, Rohtak on the same day i.e. on 17.04.2012 due to the injuries sustained in the said accident and the accident had taken place due to sole rash and negligent driving of the respondent No.1 and on the statement of complainant, an FIR No.65 dated 18.04.2012 under Section 279, 304-A of IPC was registered in police station, Sadar, Gohana. It is stated that the accident had taken place due to sole and negligent driving of the respondent No.1.

3. Upon notice of the claim petition, respondents No.1 and 2 therein appeared and contested the claim petition by filing separate written statement denying the factum of accident/compensation.

4. From the pleadings of the parties, the Tribunal framed the following issues:-

“1. Whether the accident took place due to rash and negligent driving of tractor bearing registration No. HR- 31G-4592 by its driver-respondent No. 1 on 17.04.2012 within the jurisdiction of police station, Sadar, Gohana, resulting into death of Karan Singh, as alleged ? OPP.

2. If issue No. 1 is proved in the affirmative to what amount of compensation, the petitioners are entitled to and from whom? OPP.

3. Whether the claim petition is not maintainable and petitioners have no cause of action and locus-standi to file the present claim petition? OPR-1 & 2.

4. Whether the respondent No. 1. was not holding valid and effective driving lidence at the time of alleged accident if so its effect? OPR-3.

5. Whether the respondent No. 1 was driving the vehicle i.e. tractor bearing registration No. HR-31G/4592 in violation of terms and conditions of insurance policy? OPR-3.

6. Relief.”

5. Thereafter, both the parties led their evidence in support of their respective pleadings.

6. After taking into consideration the pleadings and the evidence on record, the learned Tribunal awarded compensation to the claimant. However, the respondent No.1-Insurance Company was held liable to pay compensation at first instance and recovery rights were given to respondent No.1-Insurance Company to recover the same from appellants (driver and owner of the offending vehicle). Hence, the present appeal.

SUBMISSIONS OF LEARNED COUNSEL FOR THE PARTIES:

7. Learned counsel

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