Skip to main content

No claim if licence not renewed in time

A driving licence that stood expired on the date of a traffic accident cannot be considered to be legally valid unless it is renewed within the statutory period of 30 days, the Kerala high court has held. If the licence is not renewed so, the insurance company won't be liable to pay compensation, the court said.

A five-member bench led by acting Chief Justice Ashok Bhushan on Wednesday overruled a 2004 decision by a three-member bench on the issue. The three-member bench had held that driving licence would continue to exist in spite of its expiry unless the licensee is disqualified from holding a licence.

The 2004 decision does not lay down the correct law and, therefore, it is overruled, the judgment authored by Justice A V Ramakrishna Pillai for the full bench said.

In addition to Justice Bhushan and Justice Pillai, the full bench comprised Justice A M Shaffique, Justice A Hariprasad, and Justice A K Jayasankaran Nambiar.

The five-member bench held, "It is beyond dispute that the licence would stand renewed automatically only if the application for renewal is filed within a period of 30 days from the date of expiry thereof. In such cases, even if an accident takes place within the aforementioned period, the driver may be held to be possessing a valid driving licence. The proviso to sub-section (1) of section 15 (of Motor Vehicles Act, 1988) makes it clear that the driving licence shall be renewed with effect only from the date of renewal, in the event of an application for renewal of licence being made more than 30 days after the date of expiry. That means, on the renewal of licence on such terms, the driver of the vehicle cannot be said to have been holding a valid driving licence from the date of expiry till the date of renewal."

The court was considering an appeal filed by Oriental Insurance Company through advocate Mathews Jacob.

The company challenged an order by Motor Accident Claims Tribunal of Irinjalakuda in 1996 asking it to pay Rs1.36 lakh to Poulose Ouseph for injuries suffered when he was hit by a lorry at Nalukettu public road at Koratty around 11.45am on March 7, 1996.

Insurance company contended before the high court that the licence of the lorry driver had expired prior to date of the accident and, therefore, they are not liable to pay compensation.

As the insurance company had already paid the compensation, the high court allowed the company to recover the amount paid from the owner of the vehicle.

Article referred: http://timesofindia.indiatimes.com/city/kochi/No-claim-if-licence-not-renewed-in-time/articleshow/45976827.cms

Comments

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...