NATIONAL INSURANCE COMPANY LTD vs CHHIMAE DOLMA

WHEN this appeal came up for consideration today, learned Counsel for the parties stated that the sole question involved in it is, as to what is the effect of a driving licence having been renewed beyond the period of thirty days, after the date of its expiry. It was also stated by them that if this Commission comes to the conclusion that even when renewal is effected after thirty days of the date of expiry of driving licence it will date back to the date of expiry, appeal has to be dismissed. In the event of contrary view being taken, this appeal has to be allowed.

IN view of the above limited legal question involved in this appeal we are referring to only those facts which are material for deciding this appeal. Licence of the driver who was driving vehicle bearing registration No. HP -34 -A 2693 when it met with accident had admittedly expired on 20.8.2003. As such in consonance with the provisions of Section 14(2) last proviso of Motor Vehicles Act, 1988 in case he had got it renewed by or before 19.9.2003, it was to date back to the date of expiry i.e., 20.8.2003. Further according to the learned Counsel for the parties licence was got renewed after 19.9.2003, i.e., grace period allowed under Section 14(2) last proviso of the Motor Vehicles Act, 1988. For ready reference Sections 14 and 15 first proviso of the Motor Vehicles Act, 1988 are extracted hereinbelow: 14. ''Currency of licences to drive motor vehicles -(1) a learners 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 issued of the licence. (2) A driving licence issued or renewed under this Act shall, - (a) in the case of a licence to drive a transport vehicle, be effective for a period of three years: (x x) (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, (A) be effective for a period of twenty years from the date 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), whichever is earlier; (ii) If the person referred to in Sub -clause (i), 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: Provided that every driving licence shall, notwithstan -ding its expiry under this sub -section continue to be effective for a period of thirty days from such expiry. (Emphasis Supplied). 15. Renewal of driving licences -Any licensing authority may, on application made to it, renew a driving licence issued under the provisions of this Act with effect from the date of its expiry: Provided that in any case where the application for the renewal of a licence is made more than thirty days after the date of its expiry, the driving licence shall be renewed with effect from the date of its renewal: xxx xxx xxx (Emphasis Supplied)

IN the face of aforesaid facts and legal background, learned Counsel for the appellant after placing reliance on decision of this Commission in Appeal No. 54 of 2004 titled Sh. Todar Mal Verma v. United India Insurance Company Ltd., decided on 22.12.2005 submitted that this appeal deserves to be allowed in the face of the admitted facts. On the other hand Mr. Prashant Pandey, learned Counsel for the respondent placed reliance on a decision of Supreme Court in the case of National Insurance Company Ltd. v. Swaran Singh and Others, connected case I (2004) ACC 1 (SC)=(2004) 3 Supreme Court Cases 297, and submitted that this appeal deserves to be dismissed. Reliance was also placed by him on another decision of Supreme Court in Jitendra Kumar v. Oriental Insurance Co. Ltd. and Another, =2003 (6) Supreme Court Cases 420. Special emphasis laid down by him on paras 45 and 46 from the judgment of National Insurance Co. Ltd. v. Swaran Singh and Others. For ready reference these paragraphs are extracted hereinbelow: ''45. Thus, a person whose licence is ordinarily renewed in terms of the Motor Vehicles Act and the rules framed thereunder, despite the fact that during the interregnum period, namely when the accident took place and the date of expiry of the licence, he did not have a valid licence, he could during the prescribed period apply for renewal thereof and could obtain the same automatically without undergoing any further test or without having been declared unqualified therefor. Proviso appended to Section 14 in unequivocal terms states that the licence remains valid for a period of thirty days from the day of its expiry. 46. Section 15 of the Act does not empower the authorities to reject an application for renewal only on the ground that there is a break in validity or tenure of the driving licence has lapsed, as in the meantime the provisions for disqualification of the driver contained in Sections 19, 20, 21, 22, 23 and 24 will not be attracted, would indisputably confer a right upon the person to get his driving licence renewed. In that view of the matter, he cannot be said to be delicensed and the same remain valid for a period of thirty days after its expiry.''

AFTER having heard learned Counsel for the parties and having considered two decisions relied upon by Mr. Prashant Pandey we find that the impugned order passed by the District Forum below cannot be upheld. Reason being that Section 14(2) last proviso and Section 15(1) first proviso of the Motor Vehicles Act, 1988 extracted hereinabove, deal with the fact of licence being renewed within thirty days from the date of expiry and beyond thirty days after its expiry date. Thus on a bare reading of Section 15(1) first proviso, in our considered view where the driving licence is renewed beyond period of 30 days after expiry, it will only be effective from the date of its renewal, and not to an anterior date.

FOR taking this view reliance is being placed on the decisions in Todar Mal Verma v. United India Insurance Co. Ltd. (supra). To similar effect is the decision of this Commission in Appeal No. 177 of 2002 titled United India Insurance Co. Ltd. v. Sh. Shyam Lal and Another, decided on 3.6.2003, and of National Commission in Revision Petition 725 of 2001 titled New India Assurance Co. Ltd. v. Smt. Surinder Thakur, decided on 6.5.2002, New India Assurance Co. Ltd. v. Jadav Narendrabhai Jethabhai, 1996 NCJ 121. High Court of H.P. in FAO (MVA) No. 393/1988 decided on 18.8.2005 in the case of IV (2005) ACC 674, National Insurance Co. Ltd. v. Amar Chand and Others (supra), also took similar view. That being the position, impugned order cannot be sustained on any ground whatsoever.

TO be far to Mr. Pandey we shall now deal with two decisions of Supreme Court relied upon by him. So far case of National Insurance Co. Ltd. v. Swaran Singh and Others is concerned even in paragraphs 45 and 46 (supra), relied upon by Mr. Pandey, in our view observations made in these paras do not in any manner advance the case of his client. Thus this decision is of no benefit to him. So far reliance placed by him on the decision of Supreme Court in Jatindra Kumar v. Oriental Insurance Co. Ltd., is concerned, perusal shows that the question before Honble Supreme Court was with reference to the claim of a third party. Perusal of the judgment shows that the vehicle caught fire during the driving due to mechanical reasons and not due to any fault of the driver who was not holding a valid driving licence at the time of accident. Claim in such circumstances of the Insurance Company was negatived by the Honble Supreme Court. Admittedly that is not the situation in the present case. In the appeal before us the core question is whether the driver at the time of accident was holding a valid and effective licence. We have already answered this question in the negative. No other point was urged. Appeal allowed.