Karnataka High Court Allows Owner’s Appeal in Motor Vehicles Act Compensation Case, Setting Aside MACT Order That Fastened Liability on Owner by Holding That Driver Possessed Valid Heavy Goods Vehicle Licence for Tractor-Trailer. Court Rules That Possession of Heavy Goods Vehicle Driving Licence Under Section 10 of Motor Vehicles Act, 1988 Covers Tractor-Cum-Trailer Even if Its Weight Exceeds 7500 kg, and Insurer Liable to Pay Compensation.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The appeal arose from a motor accident claim where the Motor Accident Claims Tribunal, Harihar, had awarded compensation of Rs.7,51,000 to the claimants but exonerated the insurer on the ground that the driver of the tractor-cum-trailer did not hold a valid driving licence. The owner of the tractor-cum-trailer challenged the order in appeal. This was the second round of litigation; earlier, the High Court had remanded the matter for fresh consideration after examining the Regional Transport Officer. On remand, the Tribunal examined the RTO official and perused the driving licence extract (Ex.R9), which showed that the driver held a valid licence to drive heavy goods vehicle, light motor vehicle, transport vehicle, and other categories. Despite this, the Tribunal concluded that a specific endorsement for tractor-cum-trailer was required under Section 10 of the Motor Vehicles Act, 1988, and again absolved the insurer. The owner filed the present appeal. The appellant contended that the issue was covered by the Supreme Court's decision in Mukund Dewangan v. Oriental Insurance Company Ltd., where it was held that a licence for light motor vehicle includes transport vehicles and tractors. It was argued that the driver's heavy goods vehicle licence was sufficient and no separate endorsement was needed. The insurance company argued that Mukund Dewangan dealt with a light motor vehicle licence and that a tractor-cum-trailer's weight exceeds 7500 kg, thus requiring a separate endorsement. The High Court noted that the driver held a heavy goods vehicle licence, which was acknowledged by the Tribunal. The court held that under Section 10, there is no special category for tractor-cum-trailer; a heavy goods vehicle licence covers such a vehicle even if its unladen weight exceeds 7500 kg. Relying on Mukund Dewangan, the court concluded that the driver held a valid licence for the vehicle at the time of the accident. Consequently, the impugned order was set aside, and liability was fastened on the insurance company, which was directed to deposit the compensation with interest within six weeks. The statutory deposits made by the owner were ordered to be refunded.

Headnote

A) Motor Vehicles - Driving Licence - Tractor-Cum-Trailer Covered by Heavy Goods Vehicle Licence - Motor Vehicles Act, 1988, Section 10 - The driver possessed a valid driving licence for heavy goods vehicle, light motor vehicle, transport vehicle, etc. The tribunal held that a specific endorsement for tractor-cum-trailer was necessary, based on Section 10. The High Court, relying on Mukund Dewangan v. Oriental Insurance Company Limited, held that a licence for heavy goods vehicle covers tractor-cum-trailer regardless of unladen weight, and insurance company is liable to pay compensation. Held that the impugned order is set aside and insurer directed to deposit compensation within 6 weeks. (Paras 8-15)

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Issue of Consideration

Whether the driver of a tractor-cum-trailer, who holds a valid driving licence for heavy goods vehicle, requires a specific endorsement for tractor-cum-trailer to be considered having a valid driving licence under the Motor Vehicles Act, 1988.

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Final Decision

The High Court allowed the appeal, set aside the Tribunal's finding on liability, held that the driver's heavy goods vehicle licence was sufficient to drive the tractor-cum-trailer, and directed the insurance company to pay the compensation of Rs.7,51,000 with interest at 6% p.a. within 6 weeks. The statutory deposits made by the owner were ordered to be released to him.

Law Points

  • A driving licence to drive a heavy goods vehicle includes authorisation to drive a tractor-cum-trailer even if its unladen weight exceeds 7500 kg
  • Insurance company liable when policy is in force and driver holds valid licence
  • Remand order of High Court binding on Tribunal
  • Reliance on Mukund Dewangan v. Oriental Insurance Co. Ltd.
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Case Details

2020 LawText (KAR) (02) 39

M.F.A. NO.6600 OF 2016 (MV)

2020-02-06

R Devdas

M R Hiremathad for appellant; N K Siddeshwara for respondents 1 & 2; C R Ravishankar for respondent 4

G Gangappa @ Guddada Gangappa

Kariyappa Kalasappara, Anjavva, Basappa Guttal, The Manager, The New India Assurance Co. Ltd.

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Nature of Litigation

Appeal by the owner of a tractor-trailer against the judgment and award of the Motor Accident Claims Tribunal exonerating the insurance company from liability on the ground that the driver did not have a valid driving licence for a tractor-cum-trailer.

Remedy Sought

The appellant-owner sought to set aside the Tribunal's order holding him liable to pay compensation and to instead fix liability on the insurance company with whom a valid insurance policy existed.

Filing Reason

The Tribunal, on remand, again held that the driver's heavy goods vehicle licence did not authorize driving a tractor-cum-trailer, thus absolving the insurer, leading the owner to file the appeal.

Previous Decisions

The Tribunal initially absolved the insurer; appeal MFA No.10023/2012 resulted in remand for fresh consideration after examining the RTO; on remand, the Tribunal again exonerated the insurer.

Issues

Whether the Tribunal was justified in concluding that the driver of the tractor-cum-trailer did not hold a valid driving licence for such vehicle despite holding a heavy goods vehicle licence.

Submissions/Arguments

Appellant: The driver's heavy goods vehicle licence was sufficient and the issue is covered by Mukund Dewangan; no separate endorsement for tractor-cum-trailer is required. Insurance Company: Mukund Dewangan dealt with a light motor vehicle licence; the tractor-cum-trailer’s weight exceeds 7500 kg, requiring a specific endorsement.

Ratio Decidendi

A person holding a valid driving licence to drive a heavy goods vehicle is authorized to drive a tractor-cum-trailer, irrespective of whether the unladen weight exceeds 7500 kg. No separate endorsement or special category of licence for tractor-cum-trailer is prescribed under Section 10 of the Motor Vehicles Act, 1988. The insurance company cannot be absolved of liability when the driver holds a valid licence for the class of vehicle, and the policy is in force.

Judgment Excerpts

the driver was holding a valid driving licence to drive ‘heavy goods vehicle’ which has been noticed by the Tribunal. the Tribunal has very casually come to a conclusion that driver was supposed to have an endorsement to drive a tractor-cum-trailer, which in the opinion of this Court, was uncalled for. the driver was holding a valid driving licence to drive such a vehicle whose unladen weight exceeded 7500 kgs. the liability of paying the compensation awarded by the Tribunal shall now lie on the respondent No.4-insurance company.

Procedural History

The claimants filed MVC No.16/2010 before the Motor Accident Claims Tribunal, Harihar. The Tribunal initially passed an award holding that the driver did not have a valid licence for a tractor-cum-trailer and, therefore, exonerated the insurance company, fastening liability on the owner. The owner filed MFA No.10023/2012 before the Karnataka High Court, which remanded the matter to the Tribunal to examine the RTO regarding the driving licence. On remand, the Tribunal examined the RTO's Second Divisional Assistant as RW2 and perused the driving licence extract (Ex.R9), but again concluded that the driver's heavy goods vehicle licence did not authorize driving a tractor-cum-trailer, thus reiterating the insurer's exoneration. The owner then filed the present appeal MFA No.6600/2016.

Acts & Sections

  • Motor Vehicles Act, 1988: 10, 10(2)(e), 173(1)
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