The Supreme Court on Wednesday (August 21, 2024) reserved its verdict on the legal question whether a person holding a driving licence for a light motor vehicle (LMV) is also entitled to drive a transport vehicle weighing less than 7,500 kg. This legal question has given rise to various disputes over the payment of claims by insurance companies in accident cases involving transport vehicles of LMV licensees.
Insurance companies allege that the Motor Accident Claims Tribunal (MACT) and courts are passing orders to make them pay insurance claims while ignoring their objections regarding light motor vehicle driving licenses. Insurance companies have said that the courts are taking a stance in favor of the policyholders while deciding insurance claim disputes.
A five-member Constitution Bench headed by Chief Justice D.Y. Chandrachud heard arguments from Attorney General R. Venkataramani and others appearing for the Centre before reserving the verdict. Attorney General Venkataramani told the bench that consultations for amendments to the Motor Vehicles (MV) Act, 1988 have almost been completed.
He said that the proposed amendments are yet to be introduced in Parliament and now this can be done only in the winter session of Parliament. Earlier, the bench had adjourned the hearing after taking cognizance of the arguments of the Center that the bill amending the MV Act will be introduced in Parliament. However, later the court decided to hear the case.
The legal question before the court is, ‘whether a holder of an LMV driving license can be entitled to drive a transport vehicle of the light motor vehicle category weighing not more than 7,500 kg on the basis of that license.’ This question was transferred to a larger bench on March 8, 2022 by a three-judge bench headed by Justice U.U. Lalit (Retd). This question arose from the 2017 decision of the Supreme Court in the case of Mukund Dewangan vs Oriental Insurance Company Limited.
In the Mukund Dewangan case, the Supreme Court had held that transport vehicles having a gross vehicle weight not exceeding 7,500 kg were not outside the definition of LMV. This decision was accepted by the Centre and the rules were amended in accordance with the decision. On July 18 last year, the Constitution Bench began hearing a total of 76 petitions to deal with this legal question. The main petition was filed by M/s Bajaj Allianz General Insurance Company Limited.
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