The driver of the vehicle should hold a valid driving licence as on the date of the accident: High Court of Delhi.

IN THE HIGH COURT OF DELHI AT NEW DELHI Judgment delivered on: 12th July 2021 MAC.APP. 201 2021 BAKSHA RAM Appellant SMT. HEENA AND ORS. Advocates who appeared in this case: For the Appellant: Mr. Pallav Gupta Mr. Ravin Rao and Mr. Akshit Sawal Respondents For the Respondents : Mr. A.K.Soni and Mr. Pavan Kumar Vashishth Advocates for R 7. CORAM: HON’BLE MR JUSTICE SANJEEV SACHDEVA SANJEEV SACHDEVA J. The hearing was conducted through video conferencing. Appellant impugns judgment dated 18.09.2020 passed by the Motor Accident Claims Tribunal to the limited extent that it grants recovery right to the insurance company i.e. respondent No.7 against the appellant as well as the driver of the offending vehicle. Learned counsel for the appellant submits that the driver has MAC.APP. 201 2021 already expired. Learned counsel for the appellant submits that the driving license of the driver was valid upto 10.11.2014 and the subject accident took place on 05.12.2014. He submits that in terms of second proviso to Section 14 of the Motor Vehicles Act 1988 the driving license continues to be effective for a period of 30 days from the date of its expiry and as such the Tribunal has erred in holding that the driver was not holding a valid driving license at the time of the accident and there is a violation of the terms and conditions of the insurance policy. Learned counsel relies on the decision of a coordinate bench of this Court dated 09.01.2019 in MAC.APP.866 2017 titled New India Assurance Company Ltd vs. Santoshi Devi &Ors. Section 14 of the Act reads as under: “14. Currency of licences to drive motor vehicles.— 1) A learner’s licence issued under this Act shall subject to the other provisions of this Act be effective for a period of six months from the date of issue of the 2) A driving licence issued or renewed under this Act shall — MAC.APP. 201 2021 in the case of a licence to drive a transport vehicle a) be effective for a period of three years: Provided that in the case of licence to drive a transport vehicle carrying goods of dangerous or hazardous nature be effective for a period of one year and renewal thereof shall be subject to the condition that the driver undergoes one day refresher course of the prescribed syllabus and Provided that in the case of licence to drive a transport vehicle carrying goods of dangerous or hazardous nature be effective for a period of one year and renewal thereof shall be subject to the condition that the driver undergoes one day refresher course of the prescribed syllabus and b) in the case of any other licence — i) if the person obtaining the licence either originally or on renewal thereof has not attained the age of fifty years on the date of issue or as the case may be renewal thereof — fifty years on the date of issue or as the case may be renewal thereof — A) be effective for a period of twenty years from the date of such issue or renewal or B) until the date on which such person attains the age of fifty years fifty years whichever is earlier if the person referred to in sub clause ii) has attained the age of fifty years on the date of issue or as the case may be renewal thereof be effective on payment of such fee as may be prescribed for a period of five years from the date of such issue or renewal: MAC.APP. 201 2021 shall this sub section its expiry under continue to be effective for a period of thirty days from such expiry.” In terms of proviso to Section 14 every driving licence notwithstanding its expiry continues to be effective for a period of 30 days from such expiry. Further Section 15 of the Act prescribes that on an application being made the licensing authority shall renew the driving license with effect from the date of its expiry however if an application is made more than 30 days after date of the expiry the driving licence shall be renewed with effect from the date of its renewal. from its expiry. 10. Section 15 in fact reaffirms the proviso to Section 14 that the driving licence continues to remain effective for a period of 30 days In the present case the accident had taken place on 05.12.2014 which was within 30 days of the expiry of the driving licence on 10.11.2014. Accordingly the driving licence was effective on the date on which the accident took place. 12. Since the driving licence continued to be effective on the date of the accident the contention of the insurance company as noticed by MAC.APP. 201 2021 accident. the impugned order that there was a violation of the terms and conditions of the insurance policy is not sustainable. 13. The condition of the subject insurance policy is that the driver of the vehicle should hold a valid driving licence as on the date of the 14. As noticed hereinabove since the driving licence continues to remain effective for a period of 30 days from the date of its expiry in terms of Section 14 of the Act it cannot be held that the driver was not holding a valid driving licence as on the date of the accident. 15. Reference may also be had to the judgment of the Supreme Court in National Insurance Company Vs. Swaran Singh & Ors. 2004) 3 SCC 297 wherein the Supreme Court has specifically held that the proviso appended to Section 14 in unequivocal term states that the licence remains valid for a period of 30 days from the day of its expiry. In view of the above the finding returned by the tribunal that the driver was not holding a valid driving licence at the time of accident is not sustainable and is set aside. Consequently the right of recovery granted to the insurance company from the owner and driver of the vehicle is also set aside. 17. The appeal is accordingly allowed in the above terms. MAC.APP. 201 2021 18. For the purposes of record it may be noticed that there is no challenge to the quantum of compensation awarded to the claimants. In view of the above insurance company is directed to deposit the awarded amount with the tribunal within a period of two weeks from today. On deposit of the amount the Tribunal shall disburse the same to the claimants as per the scheme of CM APPLN. 19273 202119. Since the appeal of the appellant has been allowed the appellant is exempted from depositing the statutory amount. 20. Copy of the order be uploaded on the High Court website and be also forwarded to learned counsels through email by the Court JULY 12 2021 SANJEEV SACHDEVA J MAC.APP. 201 2021 

Summary: Insurance companies generally have this clause in their Insurance policies, as per which the driver of the vehicle should hold a valid driving license as on the date of the accident. A single Judge bench comprising of Hon’ble Justice Sanjeev Sachdeva in the matter of Baksh Ram Vs. SMT. Heena And Ors. (MAC.APP. 201/2021), dealt with an issue where the appellant filed an against the impugned judgement dated 18.09.2020 passed by the Motor Accident Claims Tribunal granting recovery right to the insurance company i.e. respondent No.7 against the appellant as well as the driver of the offending vehicle. In the present case, the counsel of the appellant submitted to the court that the driver of the vehicle had a driver’s license which had validity up to 10.11.2014, and the accident had taken place on 5.12.2014. the counsel also submitted that the driver of the vehicle had expired. Further, the counsel in reference to section 14 of the Motor Vehicles Act, 1988 (hereinafter referred to as the Act) stated that the said section states that the driving license continues to be effective for a period of 30 days from the date of its expiry. The counsel thereby stated that the tribunal wrongly held that the driver was not holding a driver’s license at the time of the accident and stated that the driver violated the terms and conditions of the insurance policy. The court observed that- “the accident had taken place on 05.12.2014, which was within 30 days of the expiry of the driving license on 10.11.2014. Accordingly, the driving license was effective on the date on which the accident took place”. Thereby the contentions of the contentions of the insurance company as noticed by the impugned order that there was a violation of the terms and conditions of the insurance policy was held not sustainable. Referring to the judgement of the Supreme Court in National Insurance Company Vs. Swaran Singh &amp; Ors. (2004) 3 SCC 297, in which the apex court held that as per section 14 of the act, the driver’s license remains valid for a period of 30 days from the day of its expiry, the court held that- “the finding returned by the tribunal that the driver was not holding a valid driving license at the time of the accident is not sustainable and is set aside. Consequently, the right of recovery granted to the insurance company from the owner and driver of the vehicle is also set aside”. Thereby the appeal was allowed and directed the insurance company to deposit the awarded amount within a period of two weeks from the date of judgement passed.  The court also directed the tribunal to disburse the same to the claimants as per the scheme of disbursal, upon deposit of the amount.