Madhya Pradesh High Court
Anarsingh vs Premsingh And 2 Ors. on 1 July, 2025
NEUTRAL CITATION NO. 2025:MPHC-IND:16814
1 MA-1466-2013
IN THE HIGH COURT OF MADHYA PRADESH
AT INDORE
BEFORE
HON'BLE SHRI JUSTICE PAVAN KUMAR DWIVEDI
ON THE 1 st OF JULY, 2025
MISC. APPEAL No. 1466 of 2013
ANARSINGH
Versus
PREMSINGH AND 2 ORS. AND OTHERS
Appearance:
Shri Manish Jain, learned counsel for the appellant.
Shri Sudhir Dandwate, learned counsel for respondent No.3.
ORDER
Heard on I.A. No.10421 of 2024, which is an application for urgent hearing. On due consideration, I.A. No.10421 of 2024 is allowed and closed.
2. The appellant has filed this Misc. Appeal under Section 173 of Motor Vehicles Act, 1988 being aggrieved by the award dated 22.03.2013 passed by the Additional Member, Motor Accident Claims Tribunal, Kukshi, District Dhar (M.P.) in Claim Case No.50/2013 on the following two grounds :
(i) Insurance Company has wrongly been exonerated from the liability of payment of compensation; and
(ii) the amount of compensation awarded is meager.
3. The brief facts giving rise to this case are that on 17.12.2010 at around 15:10 hours, the appellant was going on his motorcycle and when he was approximately 05 KM away from Agra, an Auto -rickshaw bearing registration number MP-09-LP-1523 driven by respondent No.1 in a rash and negligent manner came and dashed into the motorcycle of the appellant. As a result, the appellant sustained fractures in his left leg, right hand and left knee leading to permanent disability to the appellant. Consequently, the appellant filed a claim petition under Section 166 of the Motor Vehicles Act before the Claims Tribunal. After considering the material on record, the Tribunal awarded a Signature Not Verified Signed by: ANUSHREE PANDEY Signing time: 09-07-2025 10:18:13 NEUTRAL CITATION NO. 2025:MPHC-IND:16814 2 MA-1466-2013 compensation amount of Rs.48,530/- to the appellant with interest at the rate of 6% per annum from the date of the petition until payment.
4. Learned counsel for the appellant submits that although the appellant was able to prove permanent disability to the extent of 17.65% in his left leg, the Claims Tribunal has not assessed the compensation by adopting the multiplier method with respect to the loss of earning capacity arising out to the permanent disability suffered by the appellant and a meager amount of Rs.48,530/- overall was awarded. He further submits that this amount of compensation includes the expenditure incurred on treatment of the appellant to the tune of Rs.17,830/- as well as damage to the motorcycle and repair expenses amounting to Rs.10,000/-. If these amounts are excluded, the compensation awarded would be less than Rs.20,000/-, which is grossly inadequate in light of the permanent disability sustained by the appellant.
5. He submits that the Claims Tribunal erred in holding that the Insurance Company is not liable to pay compensation based on the finding that the driver of the vehicle was holding a licence for a Light Motor Vehicle (LMV). He further submits that it is now settled by the Hon'ble Apex Court in the case of Mukund Dewangan vs. Oriental Insurance Co. Ltd. reported in (2016) 4 SCC 298, that a person holding an LMV licence is also authorized to drive a transport vehicle. Therefore, he submits that the Insurance Company is liable to pay the compensation.
6 . Per contra, learned counsel for respondent No.3 / Insurance Company supports the findings of the Tribunal and submits that the Insurance Company has rightly been exonerated from liability on the ground that the driver of the offending vehicle was having only an LMV licence. This has been duly proved by Jaswantsingh (NAW-2), who clearly stated in his deposition that a person holding an LMV licence is eligible to drive a light motor vehicle or a tractor, which fall under the category of non- transport vehicles. He also placed reliance on Ex.NA-4 (licence of driver) in support of his contention.
Signature Not Verified Signed by: ANUSHREE PANDEY Signing time: 09-07-2025 10:18:13NEUTRAL CITATION NO. 2025:MPHC-IND:16814 3 MA-1466-2013
7. As regards the income and quantum of compensation with respect to permanent disability, learned counsel for respondent No.3 submits that the award of Rs.48,530/- is correct and proper. Dr. Awadhesh Swarnkar (AW-2) has stated that the appellant has suffered permanent disability to the extent of 17.65% in his left leg. Learned counsel for respondent No.3 further submits that since the human body has four limbs, the disability would proportionally amount to around 4% of the whole body. Therefore, the amount of compensation awarded, considering the overall disability sustained by the appellant is correct and justified. He submits that in any case the Claims Tribunal did not record any specific finding with respect to the permanent disability suffered by the appellant.
8. Heard learned counsel for the respective parties and perused the record.
9. From the calculation and the final award of compensation detailed in para 18 of the award passed by the Claims Tribunal, it is evident that the Claims Tribunal awarded a lump sum amount of Rs.25,000/- for the permanent disability sustained by the appellant. However, this amount was awarded without assessing the income of the appellant or applying the multiplier method. At the time of accident, the appellant was approximately 18 years of age. In para 17 of the award, the Claims Tribunal noted that the appellant had sustained grievous injuries resulting in 17.65% permanent disability. However, this finding of the Claims Tribunal is neither clearly reasoned nor elaborated upon. The Tribunal has not comprehensively considered the overall impact of the permanent disability on the appellant, nor has it recorded any specific finding regarding the extent of disability in relation to loss of earning capacity.
10. The Claims Tribunal awarded an amount of Rs.25,000/- for the permanent disability sustained by the appellant along with a further amount of Rs.17,830/- towards medical expenses incurred by the appellant. Additionally, an amount of Rs.5,000/- was awarded for the damage caused to motorcycle of the appellant and Rs.700/- was awarded for the period during which the appellant remained hospitalized i.e. from Signature Not Verified Signed by: ANUSHREE PANDEY Signing time: 09-07-2025 10:18:13 NEUTRAL CITATION NO. 2025:MPHC-IND:16814 4 MA-1466-2013 17.12.2010 to 23.12.2010. Thus, a total amount of Rs.48,530/- was awarded.
11. In view of the findings regarding the permanent disability suffered by the appellant in his right leg and considering the fact that the appellant sustained fractures in his left leg and right hand, the compensation awarded appears to be on the lower side. Therefore, instead of reassessing the compensation under different heads, a further lump sum amount of Rs.50,000/- is awarded to the appellant over and above the amount already awarded by the Claims Tribunal.
12. As regards the liability of the insurance Company, the issue whether a person holding a Light Motor Vehicle (LMV) licence can drive a transport vehicle has already been decided by the Hon'ble Apex Court earlier in the case of Mukund Dewangan (supra). The said issue was comprehensively dealt with in that judgment. However, the legal position has recently been further clarified by the Hon'ble Apex Court in the case of M/s Bajaj Alliance General Insurance Co. Ltd. vs. Rambha Devi & Ors. reported in (2025) 3 SCC 95, wherein it has been held that :
"180. Now harking back to the primary issue and noticing that the core driving skills (as enunciated in the earlier paragraphs), expected to be mastered by all drivers are universal - regardless of whether the vehicle falls into "Transport" or "Non-Transport" category, it is the considered opinion of this Court that if the gross vehicle weight is within 7,500 kg - the quintessential common man's driver Sri, with LMV license, can also drive a "Transport Vehicle". We are able to reach such a conclusion as none of the parties in this case has produced any empirical data to demonstrate that the LMV driving licence holder, driving a 'Transport Vehicle', is a significant cause for road accidents in India. The additional eligibility criteria as specified in MV Act and MV Rules as discussed in this judgment will apply only to such vehicle ('medium goods vehicle', 'medium passenger vehicle', 'heavy goods vehicle' and 'heavy passenger vehicle'), whose gross weight exceeds 7,500 Kg. Our present interpretation on how the licensing regime is to operate for drivers under the statutory scheme is unlikely to compromise the road safety concerns. This will also effectively address the livelihood issues for drivers operating Transport Vehicles (who clock maximum hours Signature Not Verified Signed by: ANUSHREE PANDEY Signing time: 09-07-2025 10:18:13 NEUTRAL CITATION NO. 2025:MPHC-IND:16814 5 MA-1466-2013 behind the wheels), in legally operating "Transport vehicles" (below 7,500 Kg), with their LMV driving license. Perforce Sri must drive responsibly and should have no occasion to be called either a maniac or an idiot (as mentioned in the first paragraph), while he is behind the wheels. Such harmonious interpretation will substantially address the vexed question of law before this Court.
181. Our conclusions following the above discussion are as under:-
"181.1. A driver holding a license for Light Motor Vehicle (LMV) class, under Section 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 under Section 10(2)(e) of the MV Act specifically for the 'Transport Vehicle' class. For licensing purposes, LMVs and Transport Vehicles are not entirely separate classes. An overlap exists between the two. The special eligibility requirements will however continue to apply for, inter alia, e-carts, e- rickshaws, and vehicles carrying hazardous goods.
181.2. The second part of Section 3(1), which emphasizes the necessity of a specific requirement to drive a 'Transport Vehicle,' does not supersede the definition of LMV provided in Section 2(21) of the MV Act. 181.3. The additional eligibility criteria specified in the MV Act and MV Rules generally for driving 'transport vehicles' would apply only to those intending to operate vehicles with gross vehicle weight exceeding 7,500 kg i.e. 'medium goods vehicle', 'medium passenger vehicle', 'heavy goods vehicle' and 'heavy passenger vehicle'.
181.4. The decision in Mukund Dewangan (2017) is upheld but for reasons as explained by us in this judgment. In the absence of any obtrusive omission, the decision is not per incuriam, even if certain provisions of the MV Act and MV Rules were not considered in the said judgment."
13. Thus, in view of the authoritative pronouncement by the Hon'ble Apex Court, the LMV licence held by the driver of the offending vehicle entitled him to drive the vehicle involved in the accident, which was a light goods carrier. Accordingly, the finding exonerating the Insurance Company from liability to pay compensation is hereby set aside. It is held that respondent No.3 / Insurance Company is liable to pay compensation to the appellant.
Signature Not Verified Signed by: ANUSHREE PANDEY Signing time: 09-07-2025 10:18:13NEUTRAL CITATION NO. 2025:MPHC-IND:16814 6 MA-1466-2013
14. Consequently, after the modifications as mentioned herein above the total compensation would come to Rs.98,530/-. The Claims Tribunal has already awarded an amount of Rs.48,530/-. As such the appellant is now entitled for payment of Rs.98,530/- from the Insurance Company. The enhanced amount shall carry the interest at the same rate and in the same manner as awarded by the Claims Tribunal. Rest of the conditions of the award shall remain intact.
15. The payment by the Insurance Company shall be made after verification whether any amount has been recovered from the owner and driver. If any amount has already been recovered, appropriate steps shall be taken in terms of this order.
16. With the above findings, the instant appeal is allowed and accordingly stands disposed off.
(PAVAN KUMAR DWIVEDI) JUDGE Anushree Signature Not Verified Signed by: ANUSHREE PANDEY Signing time: 09-07-2025 10:18:13