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2008 Supreme(Online)(KER) 36718

HIGH COURT OF KERALA
M.N.KRISHNAN, J
THE ORIENTAL INSURANCE CO.LTD. – Appellant
Versus
XAVIER VARGHESE & ANOTHER – Respondent
MACA/1686/2007



Advocates:
SRI.GEORGE CHERIAN (THIRUVALLA), SRI.S.PRASANTH FOR R.2

A valid driving licence and transport badge are mandatory for operating a passenger-carrying auto rickshaw; absence of either results in liability for the insurance company.

Headnote:

Licence - Motor Vehicle Accidents - Central Motor Vehicles Act - Sections 2(21), 2(47), 10, 147(3), 41 - The court emphasized the necessity of a valid driving licence and badge for a transport vehicle, concluding no effective licence existed at the time of the accident, which determined the liability of the insurance company.

Fact of the Case:

The insurance company appealed against awards from the Motor Accidents Claims Tribunal regarding an accident involving an auto rickshaw driver who lacked a valid driving licence to carry passengers on the date of the incident.

Finding of the Court:

The court found that the driver had a non-transport vehicle licence valid until 2010 but lacked the required transport badge during the time of the accident. This led to the conclusion that the driver did not possess a valid driving licence.

Issues: The main issue was whether the driver had a valid licence to operate the auto rickshaw carrying passengers at the time of the accident.

Ratio Decidendi: The court held that the provisions of the Central Motor Vehicles Act require both a valid driving licence and a transport badge for operating a passenger-carrying auto rickshaw, which the driver lacked at the time of the accident.

Final Decision: The insurance company must compensate the claimants and may recover the amount from the owner of the auto rickshaw.

J U D G M E N T

These appeals are preferred by the insurance company against the awards passed by the Motor Accidents Claims Tribunal, Kottayam in O.P.(MV)Nos.1030/04 and 1031/04. The challenge is that the driver of the auto rickshaw did not have a valid driving licence to drive an auto rickshaw carrying passengers. The Tribunal held that the auto rickshaw driver had a valid driving licence from 25.7.97 to 22.1.2010 for non transport vehicle and that badge validity for transport vehicle is for the period from 25.7.00 to 24.7.03. The Tribunal arrived at a decision that as on the date of accident R2, the driver had no valid badge. The Tribunal held that want of badge was not the reason for the accident. It is challenging that finding the insurance company has come up in appeal. Learned counsel for the owner would contend that the auto rickshaw is a light motor vehicle and when a person possess a licence to drive a light motor vehicle he can drive auto rickshaw carrying passengers which is used for public service and therefore it is not proper to hold that there was no valid driving licence for the auto rickshaw driver to drive the auto on the date of accident. In support of his argument he had cited the decision of this Court rendered inPrabhakaran P.P. v. James (2008 (3) KHC 690(DB). It was a case relating to driving of a tractor which was having unladen weight of 7500 kgs. coming within the definition of light motor vehicle u/s 2 (21) of the M.V. Act. The Division Bench held that since there was a valid driving licence to drive light motor vehicle he can very well drive a tractor and therefore insurance company cannot be exonerated from the liability. The question of validity of a licence so as to drive a transport vehicle has been considered by the Apex Court in the recent decision reported inNew India Assurance Co. Ltd. v. Roshanben Rahemansha Fakir (2008 (3) TAC 20(SC). It was a case where a delivery van used for commercial purpose was driven by a person who did not have a valid effective licence to drive a transport vehicle. The Apex Court considered Ss.147(3) and 10 of the Central Motor Vehicles Act and also the Rules. The Apex Court also extracted the table and held that as per clause (v) three-wheeled vehicles for transport of passengers or goods. Then again in paragraph 10 the Apex Court held that, “S.10 of the Act provides for classes of the driving licence. Different classes of vehicle have been defined in different provisions of the M.V. Act. The 'transport vehicle' is defined in S.2(47) of the Act to mean a public service vehicle, a goods carriage, an educational institution bus or a private service vehicle. We have noticed hereinbefore the provisions of sub-section (4) of Section 41 . We have also noticed the notification issued by the Central Government in this behalf. The said notification clearly postulates that a three wheeled vehicle for transport of passengers or goods comes within the purview of Class 5 of the table appended thereto.”

2. Therefore, the Apex Court also taken into consideration the facts of the case and held that there was no effective driving licence so far as this case is concerned. Therefore from the finding rendered by the Tribunal it can be seen that though he had a licence to drive non-transport vehicle for the period from 25.7.97 to 22.1.10, he did have a badge to drive transport vehicle only for the period from 25.7.00 to 24.7.03. The accident had taken place on 21.12.03 which definitely would show that he did not have an effective licence to drive the transport vehicle on that date. So in the light of the mandatory requirements under the provisions of the M.V. Act and in the light of the decision referred to above rendered by the Hon'ble Supreme Court it has to be held that there was no effective valid driving licence for the driver to ride the passenger carrying auto rickshaw on the date of accident. The claimants in the claim petitions are the rider and pillion rider of a motor bike

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