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2026 Supreme(Online)(Chh) 16988

HIGH COURT OF CHHATTISGARH AT BILASPUR
Sanjay K. Agrawal, J
SMT. LAXMI YADAV – Appellant
Versus
DOULAT RAM DHIDHI – Respondent
MAC No. 2284 of 2019|MAC No. 269 of 2020



Advocates:
For the Appellants/Petitioners: Prachi Singh, Raghavendra Pradhan
For the Respondents: Anil Gulati, Sanjeev Verma

A driver of a vehicle registered for carrying dangerous or hazardous substances must possess the requisite endorsement in their driving license per Rule 9 of the Central Motor Vehicle Rules, 1989, regardless of whether the vehicle was carrying such substances at the time of the accident.

Headnote:The case involves appeals against an award by the Fifth Additional Motor Accident Claims Tribunal, Raipur, concerning a motor accident involving a tanker. The primary legal issue revolves around Rule 9 of the Central Motor Vehicle Rules, 1989, specifically whether the absence of a mandatory endorsement in the driver's license for carrying dangerous and hazardous substances exonerates the insurance company from liability. The claimants sought enhancement of compensation, while the insurer sought exoneration due to the driver's lack of the requisite endorsement. The court framed the issue around the necessity of the license endorsement under Rule 9(3) and (4) of the Central Motor Vehicle Rules, 1989. The court reasoned that since the vehicle was a tanker registered for hazardous substances, the endorsement was mandatory regardless of whether the vehicle was actually carrying such substances at the time of the accident, citing that the owner's responsibility is to ensure the driver is properly licensed for the vehicle's purpose. In the result, appeal of the insurance company is partly allowed and the appeal of the claimants is dismissed.

Table of Content
1. introduction of cross-appeals regarding compensation enhancement and insurance liability. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. mandatory requirement of license endorsement for hazardous vehicles and the 'pay and recover' principle. (Para 7 , 8 , 9)
3. verification of deceased's age to determine the appropriate multiplier for compensation. (Para 10 , 11)

(Single Bench)

Order on Board

1. Against the impugned award dated 24.09.2019 passed by the learned Fifth Additional Motor Accident Claims Tribunal, Raipur in Claim Case No.211/2015, the claimants have preferred MAC No. 2284 of 2019 seeking enhancement of the compensation amount, whereas the insurance company has preferred MAC No.269 of 2020 seeking exoneration from liability to pay the compensation.

2. Since common question of law and facts are involved in both the appeals, they are clubbed together, heard together and disposed of by this common order.

3. Mr. Anil Gulati, learned counsel appearing for the insurance company, would submit that since the vehicle involved was a Tanker, which was carrying dangerous & hazardous substance, therefore, endorsement in the licence to that extent was required and since the driver did not have the requisite endorsement, therefore, the insurance company is not liable to pay the amount of compensation in light of the decision of the Supreme Court in the matter of Chatha Service Station v. Lalmati Devi & Others12025 SCC OnLine SC 756. He would further submit that even though the vehicle was not carrying dangerous & hazardous substance then also the endorsement will be necessary in light of the decision of the High Court of Punjab & Haryana in the matter of Rajesh Singh & Anr. v. Hardeep Singh & Another22017 SCC OnLine P&H 3261

4. Ms. Prachi Singh, learned counsel appearing for the claimants, would submit that the amount of compensation is not just and proper, therefore, it deserves to be enhanced.

5. Mr. Sanjeev Verma, learned counsel appearing for the owner of the vehicle, would support the impugned award and submit that the appeals of the insurance company & claimants both deserve to be dismissed.

6. I have heard learned counsel for the parties, considered their rival submissions made herein-above and went through the records with utmost circumspection.

Appeal of the Insurance Company i.e. MAC No.269/2020

7. Sub-Rule (3) and (4) of Rule 9 of the Central Motor Vehicle Rules, 1989 requires that Licensing Authority, on receipt of application referred to sub-rule (2), shall make an endorsement in the driving licence of the applicant to the effect that he is authorised to drive a goods carriage carrying goods of dangerous or hazardous substance. Admittedly, the vehicle was a Tanker and it was goods carrying vehicle registered for carrying dangerous/ hazardous substance and driver of the said vehicle did have licence to drive the heavy goods vehicle but did not have necessary endorsement to drive that vehicle as required by the Rules. However, the learned Claims Tribunal in light of the decision of this Court in the matter of United India Insurance Co. Ltd. v. A. Verlaxmi 32013 SCC OnLine Chh 272 did not found favour the plea of the insurance company and proceeded to impose liability upon the insurance company. However, in this regard, the decision of the Supreme Court in Chatha Service Station (supra) may be noticed herein profitably, in which the decision of this Court in A. Verlaxmi (supra) was also noticed and it was not approved by Their Lordships of the Supreme Court and observed in para 19 as under :

“19. This raises genuine suspicion on the veracity of the certificate produced at the appellate stage. We have looked at the certificate as pointed out by the learned Counsel, a copy of which is available in the record. The document certifies the driver to have successfully completed a three-day training course between 13.01.2012 to 16.01.2012 in line with Rule 9 of the Rules. It

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