LexM/S BAJAJ ALLIANCE GENERAL INSURANCE CO. LTD. versus RAMBHA DEVI & ORS.
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[2024] 11 S.C.R. 541 : 2024 INSC 840 M/s Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi & Ors. (Civil Appeal No. 841 of 2018) 06 November 2024 [Dr Dhananjaya Y Chandrachud, CJI, Hrishikesh Roy,* Pamidighantam Sri Narasimha, Pankaj Mithal and Manoj Misra, JJ.] Issue for Consideration (i) Whether a driver holding a Light Motor Vehicle (LMV) license (for vehicles with a gross vehicle weight of less than 7,500 kgs) as per Section 10(2)(d), which specifies ‘Light Motor Vehicle’, can operate a ‘Transport Vehicle’ without obtaining specific authorization under Section 10(2)(e) of the MV Act, specifically for the ‘Transport Vehicle’ class; (ii) whether the second part of Section 3(1) which emphasizes the necessity of a driving license for a ‘Transport Vehicle’ overrides the definition of LMV in Section 2(21) of MV Act? Is the definition of LMV contained in Section 2(21) of MV Act unrelated to the licensing framework under the MV Act and the MV Rules; (iii) whether the additional eligibility criteria prescribed in the MV Act and MV Rules for ‘transport vehicles’ would apply to those who are desirous of driving vehicles weighing below 7,500 kgs and have obtained a license for LMV class under Section 10(2) (d) of the MV Act; (iv) what is the effect of the amendment made by virtue of Act 54 of 1994 w.e.f. 14.11.1994 which substituted four classes under clauses (e) to (h) in Section 10 with a single class of ‘Transport Vehicle’ in Section 10(2)(e); (v) whether the decision in Mukund Dewangan (2017) is per incuriam for not noticing certain provisions of the MV Act and MV Rules. Headnotes† Motor Vehicle Act, 1988 – ss.10(2)(d), 10(2)(e), 2(21), 2(47) – On reference, 3-Judge Bench in Mukund Dewangan v. Oriental Insurance Co. Ltd. [2017] 7 SCR 765 [Mukund Dewangan (2017)] held that the holder of a license for a ‘Light Motor Vehicle’ (LMV) class need not have a separate endorsement to drive a ‘transport vehicle’ if it falls under the ‘Light Motor Vehicle’ * Author 542 [2024] 11 S.C.R. Digital Supreme Court Reports class i.e. below 7,500 kgs – However, two-judge Bench in M/s Bajaj Alliance General Insurance Co. Ltd. v. Rambha Devi & Ors. (2019) 12 SCC 816 observed that Mukund Dewangan (2017) did not consider certain important provisions of the MV Act and MV Rules, referred the matter to a larger bench of three judges for reconsideration of the ratio in Mukund Dewangan (2017) – Said three judge Bench further referred the matter to a larger bench of five judges – A driver holding a Light Motor Vehicle (LMV) license for vehicles with a gross vehicle weight of less than 7,500 kgs, if can operate a ‘Transport Vehicle’ without obtaining specific authorization therefor: Held: Yes – For licensing purposes, LMVs and Transport Vehicles are not entirely separate classes and both overlap – Thus, a driver holding a license for LMV class u/s.10(2)(d) for vehicles with a gross vehicle weight under 7,500 kg, is permitted to operate a ‘Transport Vehicle’ without needing additional authorization u/s.10(2) (e) specifically for the ‘Transport Vehicle’ class – In the absence of any obtrusive omission, the decision in Mukund Dewangan (2017) is not per incuriam even if did not consider certain provisions of the MV Act and MV Rules and is upheld. [Paras 131(I), (II)] Motor Vehicle Act, 1988 – ss.2(10), 3, 10(e) to (h), Chapter II- s.10(2)(e) – Central Motor Vehicles Rules, 1989 – r.14 – Form 4 – ‘Transport Vehicle’ in s.3 – Purpose – 1994 amendment substituted four classes of ‘medium goods vehicle’, ‘medium passenger vehicle’, ‘heavy goods vehicle’, and ‘heavy passenger vehicle’ under clauses (e) to (h) in s.10 with a single class of ‘Transport Vehicle’ in s.10(2)(e) – Effect – Plea of insurance companies that in view of the ‘transport vehicle’ having been specifically mentioned after the amendment, a separate endorsement would be necessary to drive a ‘transport vehicle’ and that even before the 1994 amendment, the second part of s.3 always provided that a separate endorsement would be necessary: Held: The specific authorization does not mean that a person holding an LMV license which covers ‘Transport vehicle’, would be disentitled to drive a ‘Transport Vehicle’ – The emphasis in the second part of Section 3 is in relation to Medium and Heavy Vehicles in the statutory scheme even prior to the 1994 amendment – Second part of Section 3 pertains to a driving license for those driving ‘med
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