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2026 Supreme(All) 126

HIGH COURT OF JUDICATURE AT ALLAHABAD 
SANDEEP JAIN, J.
Lal Ji Yadav - Appellant
Versus 
National Insurance Co. Ltd. And Others – Respondents 
FIRST APPEAL FROM ORDER No. - 7 of 2026
Decided On : 27-01-2026

Advocates Appeared:
For the Appellant : Amit Kuma Sinha, Amit Kumar Sinha, Deepali Srivastava Sinha
For the Respondent: Mohd. Asim Zulfiquar, Radhey Shyam

A driver with an LMV license may operate vehicles below 3000 kg without additional authorization, and future prospects must be included in compensation calculations.

Headnote:(A) Motor Vehicles Act, 1988 - Section 173 and Section 66 - The appeal contended that no permit was necessary for the vehicle based on its laden weight of 975 kg, and the driver had a valid LMV license. Court found no permit required for under 3000 kg vehicles. (Para 7, 8).

(B) Compensation - Future prospects of deceased were not considered. Per Rule 220-A of UP Motor Vehicle Rules, 1998, claimants entitled to 50% future prospects and reduced personal expense deduction from income. (Para 11, 16).

(C) Interest - Court found 6% awarded was insufficient, should be 7% as per Rule 220-A. (Para 17).

Facts of the case:
Road accident resulting in the death of a claimant’s family member. The tribunal initially awarded Rs.3,89,000/- as compensation.

Findings of Court:
Total compensation recalculated to Rs.11,63,100/- with interest at 7% to be indemnified by the insurer.

Issues: Whether the vehicle required a permit; appropriateness of license type; calculation of compensation and deductions.

Ratio Decidendi: The court ruled the vehicle did not need a permit, the driver had an appropriate license for the vehicle type, and the tribunal erroneously calculated compensation.

Result: Appeal allowed, compensation increased to Rs.11,63,100/- with interest.

Table of Content
1. factual background of the case (Para 1 , 2)
2. appellant's arguments on liability (Para 3 , 4)
3. court's analysis and relevant case law (Para 5 , 6 , 7)
4. claimants' arguments for compensation increase (Para 8 , 10)
5. legal provisions regarding compensation calculation (Para 9 , 11 , 12 , 13)
6. determination of total compensation (Para 17 , 19)
7. final order and directives (Para 20 , 21 , 22)

JUDGMENT :

SANDEEP JAIN, J.

1. Ms. Deepali Srivastava Sinha, learned counsel for the owner appellant, learned counsel for the respondent Insurance Company and Sri Abhishek Tripathi, Advocate holding brief of Mohd. Asim Zulfiquar, learned counsel for the claimants-respondents are present.

2. The instant appeal under Section 173 of the Motor Vehicles Act, 1988 has been preferred by the owner of the offending three wheeler No.UP- 70-AT-3092 against the impugned judgment and award dated 21.07.2009, subsequently corrected on 29.07.2009, passed by the Motor Accident Claims Tribunal/District Judge, Kaushambi in M.A.C.P. No.70 of 2006 (Smt. Naghama Begam vs. Lal Ji Yadav and another) whereby, for the untimely death of Khaliq Ahmad @ Achchhe in a road accident that occurred on 09.04.2009, a compensation of Rs.3,89,000/- alongwith interest @ 6% per annum has been awarded to the claimant, which was ordered to be indemnified initially by the insurer of the offending vehicle but later on a right of recovery was given to it from the owner of the offending vehicle.

3. Learned counsel for the appellant submitted that since the offending vehicle was not having a valid permit and the offending driver had a valid and effective driving license to drive LMV(Private) on the date of the accident, hence, the liability to pay compensation was imposed on the owner of the tempo, which is erroneous. Learned counsel submitted that since the laden weight of the offending vehicle was only 975 kg, which was below 3000 kg, as such, no permit was required under Section 66 of the Motor Vehicles Act, 1988. It was further submitted that the offending driver Bablu Yadav possessed a driving license, which was valid and effective for driving LMV(Private) vehicle but the Tribunal has erred in concluding that the driving license having an endorsement to drive commercial vehicle was required. Learned counsel submitted that since the laden weight of the vehicle was below 3000 kg., as such, driver having a valid LMV(Private) license could have legally driven the offending vehicle for which no endorsement for driving transport vehicle was required, but this was not considered by the Tribunal. Learned counsel submitted that in view of the judgment of the Apex Court in the case of Bajaj Alliance General Insurance Co. Ltd. vs Rambha Devi and others (2025) 3 SCC 95 , the offending driver was having a valid and effective driving license to drive the vehicle. With these submissions, it was prayed that the appeal be allowed and the liability to pay compensation be imposed on the insurer of the offending vehicle.

4. Per contra, learned counsel for the respondent-Insurance Company has very fairly conceded that since the weight of the offending goods vehicle was below 3000 kg., as per Section 66 of the Motor Vehicles Act, 1988, a permit was not required for plying it. He further conceded that since the driver was having a license to drive LMV(Private) vehicle, as such, an endorsement for driving transport vehicle was not required at the time of the accident, as held by the Constitution Bench of the Apex Court in the case of Bajaj Alliance General Insurance Company Limited (supra).

5. I have heard learned counsel for the parties and perused the impugned judgment and documents submitted with the appeal.

6. The Constitution Bench of the Apex Court in the case of Bajaj Alliance General Insurance Company Limited (supra), after analyzing whether a holder of LMV license can drive all the vehicles below the weight of 7,500 kg, held as under:-

"181.1. A driver holding a licence for light motor

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